Artificial Intelligence (AI) Governance and Regulation

In India, section 70-B of the Information Technology Act, 2000 (the IT Act) gives the Central Government the power to appoint an agency of the government to be called the Indian Computer Emergency Response Team. Further, it is legally mandatory for service providers, data centres and body corporates to report on cybersecurity incidents as outlined in the Information Technology (The Indian Computer Emergency Response Team and Manner of Performing Functions and Duties) Rules, 2013, which were notified under the Information Technology Act, 2000.

Statement 1 is Incorrect: The Summit's intellectual framework and core philosophy were anchored in three foundational principles (Sutras): People, Planet, and Progress, not People, Planning, and Progress. Statement 2 is Incorrect: The New Delhi Declaration introduced the Charter for Democratic Diffusion of AI to promote affordable access to foundational AI resources, support local innovation, and build resilient AI ecosystems. However, it was established as a voluntary and non-binding framework, respecting national laws, rather than a binding treaty. Statement 3 is Correct: The New Delhi Declaration on AI Impact was structured around seven thematic pillars of action, officially referred to as Chakras. These foundational areas included Access for Social Empowerment, AI for Science, and Secure and Trusted AI, alongside Democratizing AI Resources, Economic Growth & Social Good, Human Capital Development, and Resilient, Efficient & Innovative AI Systems. Therefore, option D is the correct answer.

Statement 1 is correct. A key aspect of Web 3.0 is the concept of decentralization, where users have more control and ownership over their personal data, rather than having it stored and controlled by centralized platforms. Statement 2 is correct. Blockchain technology is a core component of Web 3.0, and it can enable the creation of decentralized, user-owned social networks and platforms. Statement 3 is correct. The decentralized nature of Web 3.0 means that it is not controlled by a single corporation or entity, but rather operated and maintained collectively by the users and participants in the network. Therefore, all three statements regarding Web 3.0 are correct.

✅ Statement I: Correct
*India co-chaired the AI Action Summit in Paris (Feb 2025), continuing efforts from the Bletchley Park (UK, 2023) and Seoul (South Korea, 2024) Summits on AI governance.* ❌ Statement II: Incorrect
*The joint statement on ‘Inclusive and Sustainable AI’ was signed by 58 countries including India and China, but the US and UK did not sign due to concerns about overregulation.* Correct Answer: Only Statement I is correct.

Statement 1 is Correct: At their core, Large Language Models (LLMs) function by analyzing input context and calculating a statistical probability distribution for the next possible words (tokens) in a sequence. In their most basic form of text generation (known as "greedy decoding"), they pick the word with the absolute highest probability. While standard applications often introduce controlled randomness (stochastic sampling like *top-k* or *temperature scaling*) to make text more creative, the foundational mechanism relies on assigning probabilities to select the next word. Statement 2 is Correct: LLM training relies heavily on mathematical optimization. Algorithms such as Stochastic Gradient Descent and backpropagation are used to iteratively adjust billions of model parameters. The explicit goal of this process is to minimize a "loss function," which mathematically represents the model's prediction errors compared to the actual training data. Statement 3 is Incorrect: LLMs do not produce inherently unbiased outputs. Because they learn from massive, human-generated datasets scraped from the internet, they are well-documented to inherit, reflect, and sometimes amplify historical and societal biases (e.g., gender, racial, or cultural stereotypes) present in their training data. Therefore, the correct option is B.