Artificial intelligence is rapidly becoming part of India's telecom industry, powering everything from customer support to network management. However, the growing use of AI has also raised concerns about data privacy, cybersecurity and automated decision-making.

To address these risks, the Telecom Regulatory Authority of India (TRAI) has proposed a new set of guidelines for the responsible use of artificial intelligence in telecom networks and services. The draft framework, released on October 30, 2026, aims to make telecom companies more accountable for the AI systems they use.

The proposal could bring significant changes to how telecom operators deploy, monitor and manage AI technology in India.

TRAI Wants Telecom Companies to Take Responsibility for AI

Under the proposed framework, telecom operators and other authorised entities would need to introduce internal AI policies approved by their boards of directors or equivalent governing bodies.

An important part of the proposal is that companies would remain responsible for the outcomes of AI systems even when the technology is developed or supplied by third-party vendors.

This means telecom operators may not be able to avoid accountability by blaming an external technology provider when an AI system causes problems.

AI Systems Could Be Classified Into Three Risk Categories

TRAI has proposed classifying AI systems according to the level of risk they pose to consumers and telecom infrastructure.

The three proposed categories are:

• High-risk AI: Systems that could significantly affect network operations, financial outcomes or consumers.

• Medium-risk AI: Systems with a moderate potential impact that require appropriate monitoring.

• Low-risk AI: Systems with relatively limited potential consequences.

The classification would help companies determine the level of supervision and safety checks required before deploying different AI applications.

Companies May Have to Report Serious AI-Related Incidents

One of the most important proposals concerns cybersecurity and incident reporting.

Telecom operators would be required to establish mechanisms to identify, record and investigate AI-related incidents. Serious incidents classified as critical or high severity would have to be reported to TRAI in the prescribed format and within the specified timeframe.

The draft also proposes dedicated AI Governance and Safety Committees within telecom companies. These committees would oversee AI deployment, examine potential risks and recommend corrective measures when systems behave unexpectedly.

Companies would also need to maintain records of their AI systems and introduce appropriate human oversight.

Why Is TRAI Introducing These Guidelines Now?

Telecom networks are essential for digital payments, emergency services, communication and several public services. As AI becomes more deeply integrated into this infrastructure, failures or security breaches could have consequences beyond ordinary software problems.

Recent cybersecurity concerns involving autonomous AI systems have further highlighted the need for stronger safeguards. Government agencies have warned about AI-assisted attacks targeting financial institutions and other organisations.

TRAI's proposed framework is intended to encourage innovation while ensuring that AI systems operating within critical telecom infrastructure remain secure, reliable and accountable.

Consumers Could Also Get Better Protection

The proposed guidelines are not limited to internal company policies. They also focus on consumer protection.

TRAI has proposed that telecom companies establish grievance-redressal mechanisms to address harm caused by AI systems within a reasonable timeframe.

The framework also emphasises human supervision, data protection and regular assessment of AI systems. These measures could help reduce the risks of incorrect automated decisions, unexpected system behaviour and misuse of sensitive information.

When Will the New AI Rules Come Into Effect?

It is important to understand that these are currently draft guidelines, not final regulations.

TRAI has invited stakeholders to submit their comments and suggestions by November 27, 2026. The regulator will consider the feedback before deciding on the final framework.

If implemented, the proposed guidelines could mark an important step towards stronger AI governance in India's telecom sector, ensuring that technological progress is accompanied by cybersecurity, transparency and consumer accountability.