Artificial intelligence (AI) companies in India welcomed the IT ministry’s revised AI advisory issued late on Friday, which removes the provision mandating intermediaries and platforms to obtain government permission before deploying “under-tested” or “unreliable” AI models and tools in the country. Although the advisory was sent to significant social media intermediaries with more than 50 lakh registered users in India, it did not explicitly state whether it applies only to those specific companies. Conversational AI platform Haptik’s CEO stated that the revised advisory is a huge win for startups and will encourage innovation in the country. The revised advisory requires under-tested and unreliable AI models to be labeled to inform users of their potential fallibility or unreliability. It also advises intermediaries to ensure that their AI models and algorithms do not permit bias, discrimination, or threaten the integrity of the electoral process. The advisory further recommends the use of consent pop-ups or similar mechanisms to explicitly inform users about the unreliability of AI-generated output. AI companies and industry experts view the revised AI advisory as a fair and progressive change that strikes a balance between fostering innovation and having proper guardrails. They appreciate the government’s proactive move and believe it encourages transparency and user awareness without stifling innovation. However, they also acknowledge that the legal landscape remains complex and calls for a proactive dialogue between technology companies, legal experts, and policymakers to establish clear and actionable guidelines that support innovation, creators, and user protection.