India's Data Security Council releases AI accountability guide for Indian enterprises
Read more
Business Standard
business-standard.com

India's Data Security Council releases AI accountability guide for Indian enterprises

The Data Security Council of India (DSCI) has released an industry guide on artificial intelligence accountability tailored for India, focusing on agentic AI. This document can significantly assist in determining who is responsible if an agent goes out of control or breaches its duties.

Instead of proposing new standards, the guide clarifies how existing mandatory doctrines apply to autonomous AI systems from various vendors and shows where responsibility lies throughout the value chain that brings AI into use.

It examines the use cases of agentic AI, the types of impacts and risks these systems can create, as well as the factors determining accountability. Furthermore, the document explains why a proportional and clearly distributed approach to governance, oversight, and responsibility is important for India to guide the user industry and accelerate responsible AI adoption.

The report notes that defining responsibility will be crucial depending on where the models are hosted, as well as who owns and controls them. The choice of hosting distributes responsibility differently. The architecture and hosting selection determine whether responsibility is distributed across the entire value chain or concentrated within the enterprise, which creates a central paradox of AI deployment in the corporate environment. Controlling the architecture and ownership of decision-making spaces removes an external shield of liability, and enterprises are likely to become the primary legal owners of both the infrastructure and the agent's behavior.

Responsibility essentially rests with five groups utilizing AI: user organizations, service providers and integrators, product companies and startups, tool and framework providers, cloud and infrastructure solution providers, and model providers.

The guide cautions against viewing responsibility as a binary choice between the end-user organization and participants in the value chain. It warns that framing this choice as either 'or' between the end-user and the upstream value chain participant will be legally incorrect, technically inaccurate, commercially paralyzing, and undermine a level playing field.

Moreover, the report indicates that AI permeates enterprises through various channels such as browsers, co-pilots, generative AI in enterprise software, as well as AI models and tools. Each of these pathways carries its own question of accountability, so each path requires attention and careful examination. Unknown or unidentified risks may lead to the enterprise bearing responsibility without being able to take action.

Similar stories

Hidden Cybersecurity Risks of AI: How Everyday Assistants Threaten Corporate Data
Read more
iol.co.za

Hidden Cybersecurity Risks of AI: How Everyday Assistants Threaten Corporate Data

The main drawback of integrating artificial intelligence into daily workflows is that critical protective mechanisms are implemented only after the technology has become deeply entrenched in operations. Companies and specialists hastily integrated generative tools into their operations from the outset, treating data governance and user privacy as secondary concerns.

As a result, modern reactive security measures resemble a sticker placed over growing structural cracks rather than a robust and comprehensive solution to the problem. This vulnerability is particularly noticeable among small and medium-sized enterprises (SMEs).

According to Microsoft's Data Security Index, a striking 32% of security incidents reported by surveyed businesses were directly linked to the use of generative AI.

Establishing defensive barriers after deployment has ceased to be merely an isolated operational issue; it has become a pervasive global dilemma affecting various industries and borders. Very few modern organizations remain untouched as leadership teams attempt to assess their true level of exposure within expanding digital footprints.

A Morgan Stanley 2026 study highlights this tension, showing that 90% of surveyed businesses identify corporate data as the primary source of operational risks, with 56% pointing to their internal AI tools as the driver of this risk. However, it is alarming that only 41% maintain strict, centralized tracking of active AI models along with designated departmental ownership.

Cybercriminals are deliberately targeting these institutional 'grey areas,' refining tactics designed to exploit the operational friction caused by uncontrolled AI adoption. Credential phishing remains the primary chosen weapon.

As noted in the Microsoft 2026 Digital Defense Report, compromised legitimate accounts now account for 20% of all initial breaches into corporate networks. The report emphasizes a fundamental truth: artificial intelligence does not change the traditional foundations of security—it simply provides adversaries with a faster and more scalable way to exploit familiar organizational weaknesses.

When a single corporate profile connected to an AI workspace is breached, every proprietary file, client record, or strategic document ever entered into that ecosystem instantly becomes accessible to attackers.

Historically, individual employees represented the weakest link in an organization's defensive perimeter. Deep reliance on everyday AI utilities only amplifies this human factor. When an employee takes a confidential spreadsheet from OneDrive and uploads it to an unverified personal AI assistant to meet an urgent afternoon deadline, they unknowingly bypass every firewall, access control, and internal policy designed to protect that intellectual property. Most often, this breach occurs without malicious intent or awareness of the long-term consequences for the business.

To counter this vulnerability, enterprises must immediately establish clear, enforceable boundaries defining which categories of data can interact with AI mechanisms, reinforce these policies with strict compliance checks, and establish clear intellectual property ownership.

Maintaining a disciplined balance between business insights fed into AI models and how deeply these platforms regulate daily work is one of the most pressing cybersecurity challenges facing leadership today—and this challenge will only intensify in the future.

Popular