India
TRAI Requires Telecom Operators to Report Major AI Failures
By Sejal Sharma
The Telecom Regulatory Authority of India (TRAI) has issued draft guidelines that would make telecom companies such as Airtel, Jio, Vodafone and others directly responsible for any problems arising from the artificial intelligence (AI) they use in their networks and services, including AI purchased from vendors. The draft, released on Friday, also requires that serious AI failures be reported to TRAI. TRAI had earlier in 2023 recommended an independent AI regulator, but the government has not acted on that recommendation. The new draft applies to any entity holding a licence under the Telegraph Act, 1885, or an authorisation under the Telecommunications Act, 2023, that uses or plans to use AI. Stakeholder comments are invited by November 27.
Under the proposal, companies would need to report critical and high‑severity incidents, such as major malfunctions and repeated failures, to TRAI. TRAI said it may use this information for advisories, risk assessment and other lawful regulatory purposes.
Telecom operators already employ AI in various ways. Airtel uses an AI‑based system to flag spam calls and messages and has added an AI tool that blocks malicious links across SMS, OTT apps, email and browsers, as well as AI protection against OTP fraud. Jio’s in‑house AI platform, JioBrain, is integrated into its network operations for fault prediction, capacity allocation and real‑time optimisation. Vodafone Idea (Vi) uses AI to flag spam calls and SMS and runs an AI‑driven system under its “Vi Protect” initiative to detect and respond to cyber threats on its core network.
The guidelines would require each company’s board to approve an internal AI policy and file it with TRAI within seven working days. The policy must cover risk rating of AI systems (high, medium or low), approval procedures, incident grading, human oversight, data handling and resolution of user complaints. It must be reviewed at least once a year. Companies would also need to establish an AI Governance and Safety Committee, headed by a senior executive designated as AI Governance and Safety Officer. No AI system could be used unless it is on the company’s inventory of AI systems.
Companies must obtain details of AI embedded in equipment they purchase and include audit and accountability clauses in supplier contracts. Before deploying any new AI, they must assess its accuracy, robustness, fairness and explainability, citing two standards from the Telecommunication Engineering Centre on fairness testing and recording AI incidents.
India currently has no dedicated AI law and relies on a patchwork of existing legislation, including the IT Act, 2000, the Digital Personal Data Protection Act, 2023, consumer protection and criminal laws. TRAI’s draft states that other laws remain applicable and that violations will be dealt with under them. The Ministry of Electronics and Information Technology (MeitY) is expected to release a consultation paper on AI regulation by the first week of November, which is likely to form the basis for future AI regulation in the country.
Frequently asked questions
Which telecom operators are affected by TRAI's draft guidelines?
The draft applies to any entity holding a licence under the Telegraph Act, 1885, or an authorisation under the Telecommunications Act, 2023, that uses or plans to use AI, including operators such as Airtel, Jio, Vodafone and others.
What reporting requirements are imposed on telecom operators for AI failures?
Companies must report critical and high‑severity incidents, such as major malfunctions and repeated failures, to TRAI, and must file an internal AI policy with TRAI within seven working days.