AI and Entrepreneurship.

The concept of entrepreneurship and business has undergone several changes as and when the
technological capability of mankind has evolved. From the simple system of barter, to the
grunt of the industrial revolution, entrepreneurship and entrepreneurs have always found a
way to evolve their business models in a way that can better serve their customers.
With the concept of artificial intelligence and machine learning easing the facilitation of
logistics and technicalities in the medical, education, defence etc., the world of business
should not be far behind in adopting to the recent changes brought on by this technological
revolution. Artificial intelligence has the potential and ability to streamline the various nitty-
gritties of the entrepreneurial processes, innovate different products and concepts, and solve
complex tasks and thus producing a range of activities, unheard and unprecedented in the
world of entrepreneurship.
What is Artificial Intelligence, and how will it help my business?
While no one can undisputedly define AI, one way of understanding AI is that it – acquires,
summarises, analyses the information fed to it, and then further predicts how future workings
and events will pan out. This future prediction aspect of Artificial Intelligence makes it a big
hit in the fashion and clothing industry, the medical industry etc.
The impact and utilisation of AI on business models can be explained the following way –

Artificial Intelligence enhances the concept of entrepreneurship research, so much so that

they have the potential to transform varying segments of global phenomena that businessmen
usually see in the entrepreneurial process.

1 https://www.datascience.com/blog/data-science-vs-business-intelligence-machine-learning-ai
The previously held concept of papered agreements has been replaced by AI mandated “E-
contracts”; to collect money for an innovative idea, AI and Big Data facilitate online
entrepreneurial activities such as – crowdfunding.
Furthering research in AI could help in closing the gap between the entrepreneurship research
and the entrepreneurship process.2

Legal Ethics relating to AI and Business.

While no explicit laws or rules exist in India relating to Businesses and Artificial Intelligence,
there exists informal guidelines that entrepreneurs and businesses ought to follow if they
employ Artificial intelligence in their working.
The Indian Business Journal, laid down the following guidelines relating to the same –
Fairness. Respect for fundamental human rights and compliance with the fairness principle;
Accountability. Continued attention and vigilance over the potential effects and
consequences of AI;
Transparency. Improved intelligibility for effective implementation;
Ethics by design. Systems should be designed and developed responsibly, applying the
principles of privacy by default and privacy by design; and
Bias. Unlawful biases or discrimination that may result from the use of data should be
reduced and mitigated4

2https://www.researchgate.net/publication/325766482_Entrepreneurship_Process_in_the_Era_of_Artificial_I
ntelligence
3https://www.researchgate.net/publication/325766482_Entrepreneurship_Process_in_the_Era_of_Artificial_I
ntelligence
4 https://www.vantageasia.com/need-ai-code-ethics/
To further protect your business, from civil liability, an entrepreneur must take care of the
following aspects –
1. Rule 4 of the Data Protection Rules require any business that engage in the collection,
storage, or otherwise deal with, or handle ‘personal information,’ to publish a
privacy policy on their websites.
The privacy policy is to clearly delineate their data processing practices, the type of
personal information collected, the purpose of collection and usage, as well as details
of disclosure made to third parties, and the reasonable security practices and
procedures adopted.5
This is further supported by section 72A of the IT Act.
2. If any business collects information from its customers, the Rule 5 of the Data
Protection Rules – “requires a body corporate to disclose the purpose of collection,
intended recipients of information, the particulars of the collecting agency, and
where the collected information will be stored, as well as the details of the intended
use of the collected data.”6
3. The act also requires absolute consent to be taken from the customers in relating to
using, storing, or analysing their information.
4. Section 43A of the IT Act requires a body possessing or handling sensitive personal
data or information in a computer resource to implement ‘reasonable security
practices and procedures’ to protect such information from ‘unauthorized access,
damage, use, modification, disclosure or impairment.’
Explanation to Section 43A clarifies that the design of these security practices and
procedures may be specified in an agreement between parties or in any law being in
force at the time. Consequently, it remains open for data processors to forge
agreements with data providers regarding adoption of security measures for the
protection of data.
5. The Data Protection Rules further require that –” individuals may at any time
withdraw their consent to share their data with the body corporate. Such
withdrawal is to be indicated to the body corporate in writing. Once a person
has opted out, the body corporate has the option to cease provision of the
service or product for which the impugned data had been sought.
Although no specific provision relating to data deletion exists yet, it is
understood that the data must be – never used by the business again; to the
best of the ability of the business be disposed of; and when cannot be
disposed of, must be archived with due protection.

Artificial Intelligence is revolutionising the world of entrepreneurship at a speed which is

both unheard and unprecedented. Artificial intelligence-based logistics and facilitation tolls in
businesses are getting embedded in every sphere. While there is little to no doubt that AI
makes business healthier, accessible, and profitable for entrepreneurs, there is a huge legal
grey area that businesses have to consider because employing the provisions of AI and big
data in their logistical working.

5 https://www.wipo.int/edocs/lexdocs/laws/en/in/in098en.pdf
6 https://www.wipo.int/edocs/lexdocs/laws/en/in/in098en.pdf
While AI has made it easier to own, and facilitate a business, it also raises serious concerns
relating to handling of data protection, privacy, and information gathering. It is advised to
take the help of a legal expert relating to Information Technology, and Artificial Intelligence
to make sure there is no breach or violation of the businesses’ duty of care relating to
sensitive and personal data of the customers.