Grok and the Governance of Generative AI: Why India Needs a New Regulatory Playbook

In recent weeks, Elon Musk’s generative AI chatbot Grok—integrated into X (formerly Twitter)—has stirred political and legal controversy in India. Grok’s responses to user queries about Indian political leaders prompted outrage, leading the Ministry of Electronics and Information Technology (MeitY) to open discussions with X on how the chatbot works and what data it draws from. But this isn’t just about one chatbot. It is a wake-up call for India to confront the deeper challenges posed by generative AI to our content governance framework, privacy laws, and constitutional safeguards.

A New Category, A New Challenge

Historically, our digital regulatory regime recognized two kinds of online actors: publishers who create content and are liable for it, and intermediaries (like social media platforms) who merely host user-generated content. India’s IT Rules, 2021, reflect this binary, with safe harbour protections extended to intermediaries—provided they don’t actively curate or generate content.

Grok, however, falls into a new, undefined category. It is a co-creator—responding to human prompts, but generating the final message autonomously. In doing so, it blurs the lines between user and platform, creator and tool, and raises a critical question: who is liable when AI-generated content causes harm, spreads misinformation, or defames an individual?

The Indian Legal Backdrop

The Indian Constitution allows the state to restrict speech under Article 19(2) on limited grounds—so any restriction on AI-generated speech must also pass that test. Moreover, the Supreme Court has made clear that offending majority sentiments alone is not enough to deem speech unlawful.

This means we need to distinguish between AI misuse and legitimate use, based on intent, context, and outcome. A historian using Grok to list controversial speeches for academic work is not the same as a troll using the same tool to incite violence or defame. But our laws do not currently reflect that nuance.

Privacy in the Age of LLMs

Grok also raises alarms about how it was trained. Did it use Indian user data, scraped from the open web? If yes, was this data anonymized, consented to, or stored lawfully? As India moves to operationalize the Digital Personal Data Protection (DPDP) Act,( hyper link : https://www.meity.gov.in/static/uploads/2024/06/2bf1f0e9f04e6fb4f8fef35e82c42aa5.pdf ) platforms using Large Language Models (LLMs) must clearly disclose training data practices and ensure compliance with data minimization, consent, and purpose limitation principles.

Another concern is guardrail evasion. While most LLMs have in-built content filters, savvy users can bypass them using “jailbreak prompts.” If a user manipulates Grok into generating hate speech or impersonating a public figure, who should be held accountable—the user, the platform, the AI developer, or all three?

The Limits of Blanket Regulation

India’s early regulatory responses have often been W3Schoolsreactionary. The 2023 MeitY advisory on AI-generated deepfakes proposed a licensing regime for all AI systems (hyperlink https://www.snrlaw.in/wp-content/uploads/2024/10/SR-AI-Focus-Investing-in-AI-in-India-Part-3-AI-related-Advisories-Under-the-Intermediary-Guidelines.pdf )—regardless of risk or use case. But this one-size-fits-all approach could stifle innovation in sectors like edtech, fintech, and healthtech, where generative AI is creating real social value.

Instead, India needs a tiered, risk-based regulatory framework—one that balances accountability with innovation, and freedom with responsibility.

A Path Forward: Mitigating Risk Without Halting Progress



Here are five actionable strategies India must adopt to move from reactive bans to proactive, principled governance:

1. Define a new regulatory class—AI-Augmented Intermediaries: Platforms integrating LLMs like Grok should be recognized as a distinct category with tailored duties and liabilities.
2. Mandate transparency in training data: Any LLM operating in India must disclose if Indian data was used, under what terms, and how user privacy was protected.
3. Align content policies with Indian laws: AI systems must adhere to IT Rules 2021, including publishing content guidelines in multiple Indian languages and filtering responses that violate Rule 3(1)(b).
4. Support hybrid moderation models: Especially for politically or communally sensitive queries, AI outputs should pass through human-in-the-loop verification systems.
5. Promote local LLM innovation: India must incentivize domestic development of multilingual, privacy-preserving AI tools to reduce dependency on opaque, foreign-built systems.

The Bigger Picture

India stands at a pivotal crossroads. The Grok controversy is not about a single chatbot, but about how we—as a nation—will shape the future of AI governance. We must resist the temptation to overregulate or ban, and instead build a smart, adaptive legal framework that upholds constitutional values, protects user privacy, and nurtures innovation.

Generative AI is here to stay. The question is—can we govern it wisely? Author: Ami Kumar, Trust & Safety Thought Leader at Contrails.ai

Ami Kumar brings over a decade of specialized expertise to the intersection of child safety and AI education, making them uniquely qualified to address the critical components of AI literacy outlined in "Building Digital Resilience." As a Trust & Safety thought leader at Contrails.ai, Ami specializes in developing educational frameworks that translate complex AI concepts into age-appropriate learning experiences for children and families.

Drawing from extensive experience in digital parenting and online gaming safety, Ami has pioneered comprehensive AI literacy programs that balance protection with empowerment—an approach evident throughout the blog's emphasis on building critical thinking skills alongside technical understanding. Their work with schools, educational platforms, and safety-focused organizations has directly informed the practical, field-tested strategies presented in the article.

Ami's advocacy for proactive approaches to online safety aligns perfectly with the blog's focus on preparing children for an AI-integrated future rather than simply reacting to emerging risks. Their expertise includes:

• Developing adaptive educational frameworks that evolve with rapidly changing AI technologies
• Creating age-appropriate learning experiences that balance engagement with critical awareness
• Building cross-functional programs that connect educators, parents, and technology developers
• Measuring educational outcomes to demonstrate both safety improvements and digital confidence

As an active participant in industry initiatives establishing best practices for AI literacy and digital wellbeing, Ami has contributed to curriculum standards now implemented in educational systems across North America and Europe. Their research on children's interactions with generative AI technologies has been featured in leading publications on digital citizenship and educational technology.

Connect with Ami to discuss implementing effective AI literacy programs that prepare young people to navigate artificial intelligence with confidence, creativity, and critical awareness.