BRICS Summit is a moment for India to push for a global AI governance framework

In the days leading up to the BRICS Summit in New Delhi on September 12 and 13, tech leaders Demis Hassabis and Bill Gates advocated for an AI governance institution to address emerging risks across various sectors. Both emphasized the need for international coordination; however, they did not foresee emerging economies represented in such institutions.

AI risks know no borders, and they transcend sectoral divisions. Andrew Bailey, chair of the Financial Stability Board (FSB), warned that AI's leverage, stretched valuations, and optimism could trigger market corrections worldwide, indicating a potential financial bubble.

Emerging markets, which heavily utilize AI resources, data, and labor power, are most vulnerable to its risks. The upcoming BRICS Summit offers an opportunity to address these concerns. In 2023, India held the G20 presidency, advocating for an International Institute for Regulatory Development (IIRD), a global apex body for AI, finance, and climate risk.

This institute should focus on research, regulatory capacity building, and tropicalising rules for fast-growing emerging economies. The IIRD would complement existing institutions, such as the FSB, rather than duplicate their efforts.

The IIRD should have three core functions: first, conducting research and regulatory capacity building for early warning; second, fostering an exchange of practices and best practices; and third, establishing proportionate standards that reflect the growth and user base in different regions. To achieve this, the IIRD should be chartered as an open institution, housed in India, and funded through a mix of public, private, and multilateral sources. It should have membership open to G20 countries, OECD, multilateral development banks, and the FSB.

India's BRICS Chairmanship presents an ideal platform to facilitate the creation of the IIRD. The summit should mandate a working group, chaired by India, to draft a charter for the IIRD to be presented at the 2027 summit. This approach ensures inclusivity while preventing the critique that international summits can sometimes face.

As AI governance is currently being designed by a handful of companies and governments, India's role in shaping a different architecture that includes the Global South is crucial. India should seize this opportunity to offer a new rules framework for AI governance.