CSEET · Economic and Business Environment · AI and Business Environment
Which Indian law, enacted in 2023, primarily governs the processing of digital personal data and is therefore relevant to companies training AI models on personal data?
The Digital Personal Data Protection Act, 2023 is the Indian law governing the processing of digital personal data. It applies to firms using personal data to train or run AI systems, requiring lawful grounds such as consent and placing duties on data fiduciaries.
- ADigital Personal Data Protection Act, 2023Correct
- BConsumer Protection Act, 2019
- CIndian Contract Act, 1872
- DCompetition Act, 2002
Explanation
The Digital Personal Data Protection Act, 2023 regulates how data fiduciaries process digital personal data, including consent and purpose limits, which affects AI training. The other statutes are not the specific data protection law and were enacted in different years.
Did you get it right without looking?
One question tells you little. A timed set on AI and Business Environment shows your real accuracy, how long you take and where you lose marks.
More AI and Business Environment questions
- India's approach to AI governance, as reflected in the India AI Governance Guidelines released in 2025, is best described as:
- A company deploys a chatbot that understands customers' written queries in everyday language and replies in natural sentences. Which AI fiel…
- A bank deploys an AI system that flags unusual card transactions in real time by comparing each transaction with the customer's normal patte…
- A retailer trains a model on past sales records where each record is labelled with the actual units sold, so that the model can predict next…
- The NITI Aayog's 2018 National Strategy for Artificial Intelligence, often described with the tagline 'AI for All', identified which set of …
- A company uses a generative AI chatbot for customer queries and an AI tool to shortlist job applicants. Which statement about the risks of t…