Cyril Shroff Calls For Balanced AI Regulation To Unlock India’s Data Economy

At the India AI Impact Summit, Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas made a candid admission that many in the legal profession would recognise: lawyers often arrive late, after technology has already raced ahead. But that, he suggested, is precisely why India must rethink its approach to regulating data and artificial intelligence before crises emerge.

Responding to a question on whether a clearer regulatory framework is necessary to ensure consistent and systemic data sharing by government bodies, Shroff’s answer was unambiguous. “The short answer is yes,” he said, emphasising that even well-intentioned government departments operate in silos, driven by different incentives and concerns. Coordination, he noted, is inherently challenging. Without an overarching regulatory structure, meaningful and standardised data sharing is unlikely to occur.

Shroff cautioned that in the absence of such an “overlay of regulation,” conversations about making India “AI-ready” risk remaining confined to conferences rather than translating into institutional change. At population scale, he argued, complex data governance problems cannot be solved informally. Regulation becomes the only viable instrument.

At the same time, he warned against overcorrection. Drawing a contrast with Europe’s GDPR framework, Shroff observed that excessive regulation can “kill innovation.” India, he suggested, must strike a careful balance between innovation and accountability. Regulation in the Indian context should not be seen as a barrier but as a “foundation stone for innovation.” If government data were systematically available in usable, AI-ready formats, it would spark new products, services and business models across sectors.

He also endorsed the broader idea of data sovereignty. Referring to the Prime Minister’s articulation that “jis ka data us ka hak,” Shroff said India must assert its rights in a global ecosystem where much of the data originates in the Global South while corporate ownership and monetisation are concentrated in the Global North. For India’s digital ambitions to mature, questions of ownership, access and fairness must be addressed through policy clarity.

The conversation then shifted to investor confidence and economic growth. Drawing from his experience as a capital markets lawyer, Shroff offered an analogy. India’s capital markets, once limited and fragmented, are now among the most vibrant globally. Last year, India accounted for roughly 25 percent of global IPOs, surpassing even the United States. This transformation, he argued, did not happen overnight. It took decades of regulatory evolution, consistent enforcement, improved accounting standards and uniform regulatory language.

The same logic, he said, applies to the data and digital economy. Substitute “capital markets” with “data,” and the answer remains identical: trust is built on regulatory clarity and credible enforcement. If India wants multi-billion-dollar investments, data centres, and a shift from a services-based technology model to a product-driven innovation ecosystem, it must first establish transparent and reliable governance systems.

Shroff did not shy away from acknowledging criticism of India’s dispute resolution system, often described as slow and cumbersome. Yet, he suggested that what ultimately matters to investors is whether the legal system can be trusted. A law that cannot be enforced is no law at all. Regulatory policy must therefore be matched with implementation capacity.

The underlying message from Shroff’s remarks was clear. Institutionalising incentives, accountability and safeguards through law is not antithetical to growth; it is a prerequisite for it. If India aspires to lead in artificial intelligence and digital infrastructure, it cannot rely solely on entrepreneurial energy or policy declarations. It must embed trust into the system.

In the fast-moving world of AI, where technology often outpaces legislation, Shroff’s intervention served as a reminder that legal architecture is not merely reactive. When designed thoughtfully, it can shape markets, attract capital and secure sovereignty in an increasingly data-driven world.

Event: India AI Impact Summit 2026

Date: February 20, 2026