International Journal of All Research Education and Scientific Methods (IJARESM),

ISSN: 2455-6211, Volume 11, Issue 7, July-2023, Available online at: www.ijaresm.com

Analysis of the Changing Needs of Laws in the Growing

World of Artificial Intelligence and Block Chain
Technology
Ms. Trapti Varshney1, Saujanya Khatri2
1,2
Amity Law School Noida

---------------------------------------------------------------****************---------------------------------------------------------

ABSTRACT

The study of law and information technology is inherently incompatible because traditional law, for the most
part, is slow to adapt to technological advancements and is largely constrained by national borders, whereas
technology develops quickly and embraces ideas like internationalization and globalization. Nevertheless, the
notion of the rule of law runs counter to the notion that acceptance of the law is limited to national boundaries.
Yet, a significant threat to the rule of law is about to materialize in the form of an attack from artificial
intelligence technology (AI). AI is starting to make its way into digital decision-making systems and is effectively
replacing human decision-makers as the field of research makes considerable strides. One of the best examples of
this development is the use of AI by judges to assist in decision-making. Practically speaking, this gadget is
frequently referred to as a "black box" due to its complexity and legal restrictions. Because of the lack of
transparency and the limited capacity to understand how these systems function, which are increasingly being
used by the institutions of governance, the traditional theories underpinning the rule of law are being
questioned. This is especially true when it comes to concepts like openness, fairness, and explain ability that are
directly tied to the rule of law. This article explores the technology of AI in relation to it, emphasizing the rule of
law as a mechanism for human flourishing. The extent to which the rule of law is being compromised as AI
grows more prevalent in society is examined, along with the question of whether it can still exist in a technocratic
society.

INTRODUCTION

This dissertation answers those queries by offering a high-level overview of AI and its application in the legal field. The
topic, although is complex yet will be understood by individuals without a background in technology. First, I will go
over AI in general and then discuss artificial intelligence and how it is utilised by attorneys to practice law, by persons
and businesses that are subject to the law, and by government authorities to enforce the law. The goal of this dissertation
is to present a debunked, realistic vision of artificial intelligence that is grounded in the technology's actual capabilities
and problems arising out of it. This is designed to contrast with talks that are distinctly futurist in nature regarding AI
and the law. The rule of law still bears the goal of being, "analogous to the notion of the "good," in that everyone is for
it, but has differing ideas about what it is," for the most part. If the rule of law is a concept that is valuable to hold onto
as a barometer of a "good" that is deserving of pursuit, then it should be troubling that for a second year in a row, it fell
in more nations than it improved in, indicating a general weakening of the rule of law globally.

Digital decision-making systems are being used to support human decision-making, and this role is progressively being
delegated to computers, with governance being no exception. Most of these decision-making systems are "black boxes,"
incorporating incredibly sophisticated technology that is essentially beyond the cognitive capabilities of humans.

The law also restricts openness to some extent. These factors together pose a challenge to the rule of law. The rule of
law's requirements, such as insight, transparency, justice, and explain ability, are practically impossible to meet in this
context, which raises concerns about how feasible the rule of law is in a technocratic society. The rule of law is briefly
described in Section 2 of this article to give a general overview of this intricate idea and to serve as the foundation for
the analysis that follows. The technological idea sheds light on the intricacy and opacity of these technologies.

LITERATURE REVIEW

1. "Artificial Intelligence and Legal Analytics: New Tools for Law Practice in the Digital Age" by Kevin D.
Ashley. This book explores how AI can be used in legal practice and provides a practical guide to using legal
analytics tools.

Page | 453
 International Journal of All Research Education and Scientific Methods (IJARESM),
ISSN: 2455-6211, Volume 11, Issue 7, July-2023, Available online at: www.ijaresm.com

2. "Robotics, AI and the Future of Law" by Frank Pasquale.

3. "The Future of the Professions: How Technology Will Transform the Work of Human Experts" by Richard
Susskind and Daniel Susskind. While not specifically focused on AI and law, this book provides insights into how
technology is changing the nature of professional work, including the legal profession.
4. "AI and Legal Reasoning" by D. Charles J. Batey. This book explores the philosophical and theoretical
foundations of AI and how they relate to legal reasoning.
5. "AI for Lawyers: How Artificial Intelligence is revolutionizing the Legal Profession" by Noah Waisberg and
Michael Simon.

Objectives of Study

 The researcher will go to great lengths on the effects of artificial intelligence on society and the need for a legal
system which reduces the risks associated with is advancement. the advantages,
 Moreover, the researcher will provide with an overview of laws which are right now prevailing regarding
application of artificial in intellectual property rights, which will include a detailed comparison of United States of
America, India and Unite kingdoms law related to the same.

Thus, by this dissertation researcher aims to give a succinct explanation of how law and artificial intelligence interact.
The aim of dissertation is to identify major issues, arrange them methodically according to the examination of legal
materials, and describe 1them in general, virtually disregarding particulars of individuals and government.

Hypothesis
Artificial intelligence will be utilised more and more to automate legal processes, forecast legal outcomes, and develop
new legal frameworks as it develops. The legal profession will become more effective and cost effective as a result, but
this may also spark questions about fairness, openness, and the place of human judgement in the legal system. Long-
term developments in AI may potentially lead to new varieties of "artificial law," which might contradict established
legal principles and conventions. The capacity of legal practitioners to comprehend and successfully employ these
technologies while ensuring that they are used responsibly and in the interests of justice will ultimately determine how
AI in the legal industry develops.

RESEARCH METHODOLOGY

Research means to find out and examine again. There are various types of Research this project is based on Doctrinal
method, legal research; basically, this type of research methodology requires research from sources like books,
guidelines, regulations, and Legislations. The research also involves a content analysis of old records, journals,
government documents, conferences, law commission reports, legal reporters, reference materials, scientific papers in
books, articles, and e-journals, magazine articles, series of documentaries on YouTube, newspaper stories, national
parliament debates, and so forth. An interdisciplinary approach is being used to investigate the patentability of AI. Both
primary and secondary data are used in the study

Research Questions

1. The whole research in this dissertation is based upon the problem of incompetency of existing laws to cater to the
need of the society, which with each passing day is depending more and more upon artificial intelligence.
2. Furthermore, the dissertation problem involves the ever-existing contradictions between the application of
artificial intelligence in various regimes and prevailing laws.
3. In the end, the dissertation deals with the problem of lack of legislative actions of the Indian government about the
artificial intelligence, due to which the whole regime has become vulnerable. 4. The dissertation delas with the
problems with respect to existing legal framework and block chain technology.

Artificial Intelligence
Researchers have used AI technology to automate certain challenging jobs, like playing chess, translating languages,
and driving cars. 1What sets these AI tasks apart from other forms of automated labor? It's because they all share a
characteristic in that they all make use of the higher-order cognitive processes associated with human intellect.
Comparatively, when people translate across languages, higher-order brain areas involved in comprehending symbols,
context, language, and meaning are active. Drivers of cars engage a variety of cognitive functions, including those
linked to vision,2 spatial recognition, situational awareness, movement, and judgement. Engineers automate a process
when it requires mental effort to do it, to put it simply.
3
B LWadehra "Law Relating to Intellectual Property, 2011 (Reprint)"
4
NALSAR university of Hyderabad university journal; “India journal intellectual property law” [volume 11 2020}

Page | 454
 International Journal of All Research Education and Scientific Methods (IJARESM),
ISSN: 2455-6211, Volume 11, Issue 7, July-2023, Available online at: www.ijaresm.com

Machine Learning
The term "machine learning" refers to a group of AI methods that have some things in common. In essence, most
machine learning techniques operate by finding insightful patterns in vast volumes of data. These systems can then
exploit these patterns to do a variety of tasks, like driving a car or spotting fraud, in ways that frequently result in
practical, intelligent-appearing outcomes.

I spend a little more time concentrating on machine learning because it is now the most popular approach in AI. It's
critical to define what learning means in the context of machine learning at the outset. One may infer from the name
that these systems are learning similarly to how people do. Yet, that is untrue. Instead, the term "learning" is simply
used as a crude metaphor for how people learn. For instance, when people learn, we frequently gauge success in terms
of functionality and whether a person is improving over time at a specific task through experience. 1Like how humans
learn, machine-learning systems can be loosely described as functionally "learning" in the sense that they can also
enhance their performance on specific tasks over time.

They accomplish this by looking at more data and discovering new patterns. It's crucial to note that the term "learning"
does not mean that these systems are creating higher-order neural circuits that are like those found in human learning.
Instead, these algorithms enhance their effectiveness by looking at more data and finding more patterns that help with
improved automated decision-making.2

Let's try to develop an intuitive understanding of how machine learning algorithms employ data patterns to build smart
outcomes. Think of a standard spam filter for email. Most email programs employ machine learning to automatically
identify and direct unwanted, unsolicited commercial emails into a separate spam folder. How can a machine-learning
system of this kind recognize spam automatically? The secret is frequently to "train" the system by providing it with
several examples of spam emails and numerous examples of emails that are "desirable."

After patterns have been found in these sample emails, the machine learning algorithms may use them to predict
whether a new email is likely to be spam or requested. For instance, consumers typically have the choice of whether to
classify a new email as spam or not when it arrives. Every time a user marks an email as spam, they are giving the
algorithm a training example. This tells the machine- software that this is an example of a spam email that has been
confirmed by a human and should be examined for telltale patterns that might separate it from requested emails. 3

LEGAL CHALLENGES INDIA DUE TO ARTIFICIAL INTELLIGENCE AND BLOCKCHAIN

TECHNOLOGY

You can’t regulate this technology, so what requires regulation is the application of it. Example of a bank sharing KYC
information between banks all using blockchain. Now it has to be seen whether it suits the regulatory framework or
whether any amendments are required or do we need any revised set of framework or new laws.

Legal Challenges Related To Ai in India

1. Privacy Concerns: India has a complex legal framework related to privacy, and the Aadhaar
Act, 2016, which established a unique identification system for Indian residents. The use of AI in surveillance
raises significant privacy concerns, and there have been several legal challenges related to this issue. For example,
in 2018, the Indian government introduced a proposed
2. Personal Data Protection Bill, which has been criticized for not providing enough protection for privacy rights. The
bill is still under consideration by the Indian Parliament.

Bias and Discrimination: can have difficulty recognizing people with darker skin tones, leading to misidentification and
false arrests. There have been several legal challenges related to AI bias and discrimination in India. In addition to the
Delhi High Court case mentioned earlier, in 2020, a group of activists filed a petition in the Supreme Court challenging
the use of facial recognition technology by police and other government agencies.

Intellectual Property: AI-generated content raises questions about who owns the copyright.

1
Indian patent act of 1970 (Act 39 of 1970)
2
Samueli Samiali “Reforming copyright for developing Africa” available at
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3363347.
3
See generally Richard E. Susskind, Expert Systems in Law: A Jurisprudential Approach to Artificial Intelligence and
Legal Reasoning, 49 MOD. L. REV. 168 (1986).
Page | 455
 International Journal of All Research Education and Scientific Methods (IJARESM),
ISSN: 2455-6211, Volume 11, Issue 7, July-2023, Available online at: www.ijaresm.com

In the case of Agara Labs and Google mentioned earlier, Agara Labs claimed that Google had infringed on its patent for
a voice-based AI system for call centers. The case is still ongoing, and it highlights the challenges of determining
ownership and intellectual property rights in the rapidly evolving field of AI. 4

Liability and Responsibility: As AI systems become more sophisticated, they are increasingly being used to make
decisions that have significant consequences, such as in healthcare, finance, and criminal justice. However, it can be
difficult to assign responsibility if something goes wrong, leading to legal challenges related to liability. The writ
petition filed by the National Law School of India University seeks to address this issue by establishing a legal
framework for regulating the use of AI and assigning liability in case of harm caused by AI systems.

Contractual Obligations: Smart contracts, which are self-executing contracts, are a key application of blockchain
technology. However, the legal status of smart contracts is yet to be defined in India. There is a need to develop a legal
framework for smart contracts to ensure their enforceability and validity.

Cyber security: The use of AI and blockchain technology requires secure and reliable systems to prevent cyber-attacks
and data breaches. However, the existing cybersecurity regulations are inadequate to address the unique challenges
posed by these technologies. Govt position- the approach of the government lately has been a bit of a wait and watch
approach. As it is a very cautious step to process and regulate this technology, over regulation will stifle development
and any technological advancement and under regulation will put them into a position which they don’t want to be in. 9
Because then it will lead to a lot of discrepancies which regulators will keep pulling people on when there is no clear
law. Now it cannot be termed as a perfect approach but a cautious and fair one trying to understand what is happening
in the market and then formulating something because overreacting or under reacting both will harm in this case.

IMPACT OF THESE TECHNOLOGIES ON INTELLECTUAL PROPERTY RIGHTS

What is intellectual property (IP)? According to phrase modification organizations, "are the rights granted to humans
over the creations in their brains" is defined by the Oxford Dictionary as "a person with a highly developed intellect."
The use of AI and blockchain technology in India has significant implications for intellectual property rights (IPR),
particularly regarding copyright and patent law.

Regarding copyright, AI systems can create works that can be considered original and, thus, eligible for copyright
protection. For instance, AI-generated music, literature, or artwork can be protected under Indian copyright law.
However, the question arises as to who owns the copyright for such works. Under Indian copyright law, the author of a
work is considered the first owner of the copyright. Still, it is not clear whether the creator of the AI system or the
owner of the data used to train the AI system should be considered the author of the work. 5 This ambiguity creates
significant challenges for copyright law in India. Regarding patent law, blockchain technology can create new forms of
IP, they can be used in a variety of industries, from finance to real estate. However, the legal status of smart contracts is
yet to be defined in India, which raises concerns about their enforceability and validity.

In the case of decentralized applications (dApps), blockchain technology can create new forms of software that can be
used in various industries. These dApps can be used to create new products, services, and business models. However,
the legal status of these Apps is unclear under Indian patent law, which creates significant challenges for their protection
and enforcement. Artificial Intelligence: 1. Ownership of AI-generated works:

The use of AI in the creation of works such as music, art, and literature raise questions about ownership. Who owns the
rights to a piece of music generated by an AI system, for example?

Is it the creator of the AI system or the person who owns the system and activates it?

Licensing and royalty payments: The use of AI in the creation and distribution of content can also complicate the
licensing and royalty payment process. For example, if an AI system is used to create a piece of music, who is entitled
to receive the royalties? Is it the creator of the AI system or the person who owns it?

Patentability of AI inventions: The patentability of AI inventions is also a contentious issue.

Some argue that AI inventions should be eligible for patent protection, while others believe that AI systems lack the
necessary human input and therefore should not be patentable.

4
NALSAR university of Hyderabad university journal; “India journal intellectual property law” [volume 11 2020}
5
NALSAR university of Hyderabad university journal; “India journal intellectual property law” [volume 11 2020}
Page | 456
 International Journal of All Research Education and Scientific Methods (IJARESM),
ISSN: 2455-6211, Volume 11, Issue 7, July-2023, Available online at: www.ijaresm.com

Liability for AI-generated content: AI systems can create content that infringes on IPR, and determining liability for
such infringement can be difficult.

Data protection and privacy: The use of AI systems raises concerns about data protection and privacy. Who owns the
data generated by an AI system, and how can it be protected?

Blockchain Technology:

1. Infringement detection: The use of blockchain technology to create decentralized platforms for sharing and
distributing content raises concerns about the detection of infringement. With the anonymity afforded by
blockchain, it can be difficult to identify infringers and enforce IPR.
2. Licensing and royalty payments: The use of blockchain technology can also complicate the licensing and royalty
payment process. With decentralized platforms, it can be difficult to track and distribute royalties to the appropriate
parties.
3. Trade secrets protection: The use of blockchain technology can make it easier for trade secrets to be stolen and
disseminated. With decentralized platforms, it can be difficult to control access to sensitive information and prevent
unauthorized disclosure.
4. Can raise questions about the enforceability of IPR agreements.
5. Interoperability: The use of multiple blockchains for the same purpose can create challenges for interoperability,
which can make it difficult to enforce IPR across different platforms. These are just a few of the challenges that are
arising in the field of IPR due to the use of AI and blockchain technology. As these technologies continue to evolve,
it is likely that new issues will emerge, and the legal landscape will need to adapt accordingly.

Legal Complexities in Blockchain Technology Legal Issues In Blockchain Technology

Blockchain technology presents a number of legal issues that are still being addressed by lawmakers and regulators.
Some of the key legal issues include:

1. Data privacy and security: Blockchain technology involves the storage and transmission of data, which may
contain personal information. Ensuring the privacy and security of this data is a critical legal issue.
2. Intellectual property rights: Blockchain technology allows for the creation and storage of digital assets, including
intellectual property such as patents and trademarks. Legal issues around ownership, transferability, and licensing
of these assets are still being addressed.
3. Smart contracts: Smart contracts, which are self-executing contracts that are coded onto the blockchain, raise
legal issues around contract enforcement, liability, and dispute resolution.
4. Anti-money laundering (AML) and know your customer (KYC) regulations: Blockchain technology can be used
for anonymous transactions, which can make it difficult to comply with AML and KYC regulations.
5. Jurisdictional issues: Blockchain technology operates globally, which can make it difficult to determine which
laws and regulations apply to transactions that cross national borders.
6. Taxation: Blockchain technology can create challenges for taxation authorities, as the decentralized nature of
blockchain makes it difficult to determine the location of assets and transactions for tax purposes.

These are just a few examples of the legal issues surrounding blockchain technology. As technology continues to
evolve, it is likely that new legal issues will emerge, and it will be important for lawmakers and regulators to keep pace
with these developments.

CONCLUSION

The rule of law is a nebulous concept in law, and the more one tries to define it, the more ambiguous it seems to
become. The definition of the rule of law spans a wide range; it is seen as a political ideal, a way to prevent the abuse of
power, as well as to make sure that society upholds principles, such human rights. The idea of the rule of law is one that
is valued as being worth preserving despite being vulnerable to political exploitation.

AI is a prime example of how contemporary technology is being utilised in society more and more. AI systems are
being utilised to assist human decision-makers in practically all industries as machine learning techniques advance. It
should be expected that more control and responsibility will be given to these technologies as they improve in helping
with decision- making.

It is crucial to pay attention to the fact that these technologies are undermining the principles of the rule of law as a
notion in traditional law. One aspect of AI's possible negative effects on the rule of law that sticks out when discussing
these problems is the way that it might impede human development. Human agency can be a cornerstone of society,

Page | 457
 International Journal of All Research Education and Scientific Methods (IJARESM),
ISSN: 2455-6211, Volume 11, Issue 7, July-2023, Available online at: www.ijaresm.com

therefore even while this may not typically be the first association regarding the concept of the rule of law, it is
nonetheless vital to discuss.

How to minimize AI's negative consequences on society while maximizing its good ones will be the challenge of the
future. In other words, how to promote innovation while balancing it with societal demands. It will be 16 16 20
challenging to decide which principles to measure technology against. In this sense, it is proposed that the fundamentals
of the rule of law provide a strong framework for determining the composition of every community.

The significance of protecting the Rules resides in this. This article aimed to present a clear- cut, demystified
understanding on AI and law. Now, AI is neither magic nor not. Intelligent in the sense of human cognition. Instead, by
utilizing patterns, rules, and heuristic proxies that let it make helpful decisions in certain, constrained circumstances,
modern AI technology can deliver intelligent results without intelligence.

Nevertheless, the capabilities of present AI technologies are limited. Notably, it struggles to deal with abstractions,
comprehend meaning, apply knowledge across different activities, and manage entirely unstructured or open-ended
jobs. Instead, most jobs where AI has succeeded (such as chess, credit card fraud, and tumor identification) include
highly organized areas with distinct right and wrong responses as well as robust underlying patterns that can be
algorithmically recognized.

Understanding AI in the context of law requires a grasp of both the advantages and disadvantages of present AI
technology. It assists us in developing a realistic knowledge of the areas where AI is likely to have an impact on the
administration and practice of law, as well as the areas where it is not likely to. 1 Similarity Report

Page | 458