Microsoft says regulatory oversight of AI essential, but not at the cost of innovation

Microsoft’s Chief Product Officer for Responsible AI, Sarah Bird, urged India to adopt AI regulation to build trust without stifling innovation, as the country reassesses its governance framework. The company, which sees India as a key growth market, warned against overly localized AI development while emphasizing collaboration with the government on responsible AI policies and infrastructure investments." "article": "Microsoft has called for AI regulation in India to foster trust among businesses and consumers, while ensuring innovation remains unhindered. Speaking to *Mint*, Sarah Bird, Microsoft’s chief product officer for responsible AI, highlighted the need for balanced oversight, particularly as India evaluates its AI governance framework. The company, which employs over 23,000 people in India and reported ₹29,302.6 crore ($3.38 billion) in FY25 revenue, has long advocated for global AI regulation to deepen technology adoption. India’s approach to AI regulation is evolving, with the government forming an inter-ministerial AI governance group in April to assess impacts on education, jobs, and child users. Earlier reports indicated a shift from a ‘light-touch’ stance to a more active regulatory framework. Microsoft has engaged with Indian authorities, including through its Bengaluru-based research hub, to align AI development with local needs while maintaining global innovation standards. Bird cautioned against overly localized AI systems, noting that companies like LTM and Infosys are already building advanced enterprise AI applications in Bengaluru. She stressed that while local context is crucial for solving nation-specific challenges, isolation from global innovation could hinder progress. Microsoft’s $20.5 billion data center investments in the region reflect its commitment to AI infrastructure in India, where it aims to become the world’s largest developer market by 2030. The push for AI regulation gained momentum after U.S. President Donald Trump’s June executive order requiring frontier AI developers to share advanced models with the federal government. Microsoft supports responsible oversight but insists it should not impede technological advancement. Bird emphasized that India’s AI strategy must balance local relevance with global connectivity to avoid falling behind in the rapidly evolving industry.