DPDP Act vs. AI: India's Data Law Sparks Innovation Concerns as 2025 Ends

• India's DPDP Act's consent framework raises unease regarding its compatibility with AI development and deployment.
• Policy experts warn that the law's treatment of publicly available data and its compliance architecture could hinder AI companies.
• Section 3 of the DPDP Act, allowing public data use only with voluntary consent or legal mandate, is difficult for AI developers relying on large web datasets.
• Experts like Meghna Bal and Kamesh Shekar argue the consent-based approach is flawed and risks over-regulation, diverting resources from innovation.
• While Digital Personal Data Protection Rules, 2025, add clarity, they fail to resolve core concerns about AI's reliance on public data and potential impact on startups.

Why It Matters: DPDP Act's design clashes with AI innovation, raising fears of compliance burden stifling growth.