The Legal Paradigm of Generative AI in Malaysia and India: Problems and Prospects

The utilization of Generative AI (GEN AI) has experienced a substantial increase because of investments and a variety of applications in various sectors. In 2023, the aggregate investment in generative AI exceeded $10 billion. Additionally, AI is a highly prevalent technology in China, with 83% of its companies significantly relying on it. Subsequently, India accounts for 73% of Gen AI usage, while Malaysia's data suggests that this technology is employed in the marketing sector. This investment has resulted in an increased utilization of AI tools in the areas of retail, supply chain management, and customer service. This technology enhances productivity, efficiency, and creativity in a variety of sectors. Nevertheless, it raises a few challenges that necessitate robust governance and regulation. GEN AI prioritizes transparency and accountability; AI systems could perpetuate prejudices and erode trust in the absence of regulations. In the context of contemporary concerns, this paper assesses the regulatory endeavors and issues of Malaysia and India with respect to Generative AI. This paper employs doctrinal research on primary and secondary sources. Malaysia and India have recently disclosed a variety of data breaches and unethical Gen AI practices. Therefore, even though Generative AI is streamlining marketing and assisting in numerous business sectors, the government must re-evaluate its governance, including legal and regulatory mechanisms, to determine whether it complies with international standards and contemplate reforms. The government must also look into balancing the need for innovation and evaluate data protection and privacy concerns.