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TRAI's Big Move on AI: Telecom Companies May Need Board-Approved Policies; Check New Draft Rules

Posted on 31st Oct 2026 02:06 pm by rohit kumar

The Telecom Regulatory Authority of India (TRAI) has proposed a new regulatory framework to ensure the responsible use of Artificial Intelligence (AI) across India's telecom networks and services. Under the draft guidelines, telecom companies and other authorised entities using AI may have to formulate internal AI policies approved by their Board of Directors or an equivalent governing body.

 

The proposed framework also includes AI risk classification, human oversight, dedicated governance committees and mandatory reporting of serious AI-related incidents to the regulator.

 

TRAI released the draft guidelines on October 30, 2026, and has invited comments and suggestions from stakeholders until November 27, 2026. The proposals are not final regulations yet. They may be revised after the consultation process.

 

TRAI Proposes Board-Approved AI Policies for Telecom Companies

 

According to the draft framework, telecom service providers and other authorised entities using AI will need to establish an internal policy governing the development, deployment, and use of AI systems.

 

The policy would require approval from the company's Board of Directors or its equivalent governing body. It would cover several important areas, including:

 

Classification of AI systems according to their potential risks.

 

Approval procedures before deploying AI applications.

 

Human supervision and intervention mechanisms.

 

Data governance and responsible data management.

 

Procedures for handling AI-related incidents.

 

Consumer grievance redressal mechanisms.

 

The proposal also calls for dedicated AI governance and safety committees to monitor the deployment, performance, and security of AI systems.

 

The objective is to ensure that companies do not deploy AI technology without appropriate safeguards and accountability mechanisms.

 

AI Systems to Be Classified Into Three Risk Categories

 

One of the key features of TRAI's proposed AI guidelines is a three-level risk classification system.

 

AI systems would be categorised as:

 

High-risk AI systems: Applications that could significantly affect telecom network operations, consumers or critical services.

 

Medium-risk AI systems: Applications with moderate operational, financial or consumer-related implications.

 

Low-risk AI systems: Applications with comparatively limited potential impact.

 

The classification would consider factors such as the importance of an AI system to network operations, its financial and operational consequences, and the possible impact on consumers.

 

This risk-based approach is intended to ensure that applications with greater potential consequences receive stronger oversight and safeguards.

 

Telecom Companies to Remain Responsible for Third-Party AI Systems

 

TRAI's draft makes an important point about accountability.

 

Telecom entities would remain responsible for the outcomes of AI systems used in their networks and services, irrespective of whether those systems are developed internally, purchased from technology providers, or outsourced to third-party vendors.

 

This means companies may not be able to avoid responsibility simply because an AI application was developed by an external supplier.

 

The proposed framework also emphasises human oversight. Companies would need predefined mechanisms that allow human intervention when an AI system creates risks or produces potentially harmful outcomes.

 

TRAI Proposes Mandatory Reporting of Serious AI Incidents

 

The regulator has also proposed a structured system for classifying AI-related incidents according to their severity.

 

The four proposed categories are:

 

Critical

 

High

 

Moderate

 

Low

 

Under the draft, reporting critical- and high-severity AI incidents to TRAI would be mandatory, following the prescribed reporting format, method and timeline.

 

The proposal also requires telecom companies to maintain a central database of AI-related incidents and consumer complaints involving harm.

 

This database would help companies record incidents, investigate their causes, take corrective measures, and address consumer complaints.

 

The proposed reporting mechanism is intended to help the regulator monitor serious AI failures and improve accountability across the telecom industry.

 

Why Does the Telecom Sector Need AI Guidelines?

 

Artificial Intelligence is increasingly being used across the telecom industry. Its applications include network management, customer support, fraud detection, service optimisation, call-related services, and identifying unusual network activity.

 

Telecom networks are also essential to digital payments, online commerce, government services, emergency communications and other critical digital infrastructure.

 

While AI can improve network efficiency and customer experience, poorly supervised systems may introduce risks. These can include incorrect automated decisions, data-related problems, security vulnerabilities and unexpected system behaviour.

 

TRAI believes that sector-specific guidelines can provide greater clarity and accountability while allowing telecom companies to continue adopting AI technology responsibly.

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