Proposed AI-Royalty Rule: Push for Revenue-Sharing by Data-Driven Tech Firms

A significant policy development emerged as an Indian government panel proposed that artificial intelligence (AI) companies should share revenue with original content creators whose data is used to train large AI models. According to reports, the recommendation targets global players such as OpenAI, Google, and other firms that rely heavily on scraping digital content to build and refine their generative-AI systems.

The proposal marks a major shift in India’s approach to regulating AI, emphasising economic rights, data transparency, and creator protection in the digital ecosystem. The panel argues that creators — including writers, artists, journalists, and smaller digital platforms — deserve compensation when their content underpins the commercial success of AI models. This aligns with emerging global debates around AI royalties, similar to discussions in the EU and the US.

If implemented, the rule could significantly influence the legal and regulatory architecture governing AI in India. It raises key questions around intellectual property, consent frameworks, data-use guidelines, and accountability standards for model training. The proposal also complements ongoing policy processes such as the Digital India Act and India’s AI-ethics consultations, indicating a shift toward stronger digital-rights enforcement.

For India, the move has strategic implications:
• Strengthening content-creator rights, especially for smaller players in the digital economy.
• Enhancing accountability for data-hungry AI firms and improving transparency in dataset practices.
• Positioning India as a leader in crafting balanced AI regulation that supports innovation while protecting rights.
• Encouraging domestic AI development, as clarity on data governance may attract investment and compliance-focused innovation.

Overall, the proposed AI-royalty framework reflects India’s evolving digital-regulatory vision — one that attempts to balance technological advancement with creator protection, fair economic value, and robust data-governance norms.