The draft bill also asks if companies are using “explainable AI” (XAI) — a type of artificial intelligence (AI) that makes solutions and methods understandable for humans. The bill tackles the question of storing the data locally, but leaves it open by saying that after consultation the government “will define the categories of e-commerce that would require mirroring or localization.” The policy is not public yet, and it might take a while for it to be formalized. However, Bloomberg’s report suggests the Indian government will ask for more data access and transparency — a trend previously seen in draft data protection and content policing bills — from tech companies. The idea of this bill is to create an ecommerce watchdog that stops companies from creating monopolies and give Indian startups a boost.
