TRAI proposes board-approved AI policies, risk classification and mandatory
Benchmarks Nifty23,053.10116.35FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.73 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return9.04 % Invest NowEnter search…

TRAI has proposed draft guidelines requiring telecom operators using AI to adopt board-approved policies, classify AI systems by risk and report critical incidents to the regulator. The framework also mandates AI governance committees, human oversight, impact assessments and inventories of AI systems, making telecom entities accountable for their AI-driven operations.
New Delhi: The Telecom Regulatory Authority of India (Trai) has proposed that telecom operators and network providers using artificial intelligence (AI) put in place board-approved policies governing its use, classify AI systems according to risk and report critical and high-severity incidents to the regulator.The proposals form part of Trai's draft guidelines on the responsible use of AI in telecommunication networks and services, which was released on Friday.
The framework will apply to entities holding a telecom service licence or authorisation, as well as those authorised to establish, operate, maintain or expand telecom networks, if they use or intend to use AI.
Under the proposed norms, each entity will have to classify its AI systems as high, medium or low risk, based on their significance to network operations and service delivery, their impact on financial and operational outcomes, and potential implications for consumers.
The use of any AI system will require approval from a designated officer, with the level of approval potentially varying according to its risk classification.
Live Events
The internal policy will also have to provide for human oversight, data governance, consumer protection and grievance redressal.
AI-related harms reported by users will have to be addressed within a reasonable time frame through a predefined mechanism.
Telecom entities will be required to maintain an up-to-date inventory of all active, inactive and decommissioned AI systems, recording their source, purpose and risk classification. No AI system can be used unless it is included in this inventory.
Before deploying a new AI system or modifying an existing one, companies will have to undertake validation, conformity and impact assessments covering parameters such as accuracy, robustness, explainability, fairness and resilience to model drift.
The draft also proposes a formal mechanism to record, investigate and mitigate AI incidents.
Companies will have to maintain a central database of incidents, classify them by severity and follow predefined standard operating procedures to address disruptions. Critical and high-severity incidents, including material malfunctions and recurring failures, will have to be reported to Trai in a prescribed format and time frame.
To oversee compliance, each entity will have to establish an AI Governance and Safety Committee with board approval.
The committee will include representation from network operations, service delivery, information technology, data management, regulatory affairs and consumer affairs. It will be headed by a senior executive designated as the AI Governance and Safety Officer. The committee will review AI system performance at least once every financial year and identify vulnerabilities, weaknesses in oversight, fairness concerns and emerging risks. Corrective action could include modifying or decommissioning an AI system.
The draft makes the applicable telecom entity accountable for the outcomes of all AI systems it uses, whether developed in-house or procured from third parties.
Internal AI policies and subsequent amendments will have to be filed with Trai within seven working days of coming into effect.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onTelecom Regulatory Authority of Indiaartificial intelligence in telecommunicationsAI Governance and Safety Committeetelecom operatorsAI policies in telecomAI system validationAI risk classificationconsumer protection in AItelecom service licenceincident reporting to Trai
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onTelecom Regulatory Authority of Indiaartificial intelligence in telecommunicationsAI Governance and Safety Committeetelecom operatorsAI policies in telecomAI system validationAI risk classificationconsumer protection in AItelecom service licenceincident reporting to Trai
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.



