AI offers huge opportunity, but safeguards, human oversight essential: TRAI chief

Artificial Intelligence can transform the way telecom networks are managed and digital threats detected, but its growing use must be accompanied by safeguards, human oversight and mechanisms to intervene when automated systems go wrong, TRAI Chairman Anil Kumar Lahoti said on Monday.

As AI becomes increasingly embedded in communications networks, operators and technology companies need to adopt responsible AI practices, conduct risk assessments, maintain decision logs and test models before deployment, Lahoti said.

"AI creates opportunity, but also requires safeguards through the right kind of governance approach," he said, stressing that automation should improve outcomes without weakening accountability.

Speaking at an event organised by industry body COAI, Lahoti said human oversight, auditability and the ability to intervene would remain important even as telecom networks become increasingly autonomous.

"We have to work for a connectivity that is intelligent, use of AI that is responsible, innovation is to be encouraged, and every citizen is to be empowered by technology," he said at the inaugural session of 'Powering India's Intelligent Connectivity Future'.

Lahoti noted that AI is already being used by telecom operators for demand forecasting, resource optimisation and faster identification of network problems, marking a shift from conventional automation towards more autonomous networks.

However, greater dependence on AI also creates new risks, he cautioned.

Systems should be designed to handle situations in which automated decisions go wrong, including ensuring that an incorrect decision can be quickly overridden and that services can continue if an AI-dependent function becomes unavailable.

"Resilience requires that increased intelligence does not create new single point of failure," Lahoti said.

For consumers, he said, trust depends on reliability, transparency, security, fair treatment and confidence that effective redressal is available when something goes wrong.

The TRAI chief also highlighted AI's dual role in tackling online fraud and scams. While the technology can detect anomalies and strengthen digital security, it could also make harmful activities more sophisticated if misused.

"AI can strengthen trust by improving detection of anomalies and threats, but if ill-utilised, it can also make harmful activity more sophisticated," he said.

AI can identify suspicious patterns across large datasets, but automated risk-classification systems need appropriate thresholds, safeguards and review mechanisms, he said.

Wrongly identifying a legitimate consumer, enterprise or communication as harmful could result in service disruption, reputational damage or denial of access, Lahoti cautioned.

"Fraudulent interaction can now move through multiple layers of the digital ecosystem. It may start with communication, involve a digital platform or an impersonated identity, and culminate in a financial transaction," he said.

He called for closer coordination among telecom operators, digital platforms, enterprises, financial institutions, government and law-enforcement agencies to tackle scams that increasingly span different parts of the digital ecosystem.

"Consumer experiences the change as one event. Institutions often see only separate parts of it. That is why the response must increasingly be coordinated," Lahoti said.

Information sharing for risk management, he added, should be "purpose-specific, proportionate, and protected against misuse".

On AI regulation, Lahoti cautioned against both excessive prescription and leaving emerging technologies outside the governance framework until problems emerge.

"A more durable approach is to focus on outcomes and risks," he said, identifying consumer impact, accountability, security, reviewability of automated decisions and grievance-redress mechanisms as key considerations.

He also stressed the importance of technology neutrality, saying regulation should not lock the ecosystem into a particular architecture or implementation model while the technology continues to evolve rapidly.

At the same time, common standards and interoperability could strengthen security, reliability and coordination without stifling innovation, he said.

Lahoti also pointed to the potential of AI-powered multilingual and voice-based assistance to strengthen consumer protection by providing contextual warnings when users encounter suspicious interactions, particularly in a linguistically diverse country like India.

"India's next digital transformation will not be defined merely by how many people we connect, but by how intelligently, securely, inclusively, and responsibly we connect," he said.