Meta's New AI Feature Is Raising Privacy Alarms, But Centre Is Concerned; Here's Why

The Centre is prepared to examine whether Meta's newly launched AI-powered image generation and editing tool, Muse Image, complies with India's legal framework if it receives formal complaints, Moneycontrol reported, citing Electronics and Information Technology Secretary S Krishnan.

Speaking to reporters on the sidelines of a Confederation of Indian Industry (CII) event on July 9, Krishnan said the government would assess the feature's compliance with existing laws based on representations it receives.

"The government will see if it is in accordance with the legal framework or not. We will examine the representations we receive on the matter," he said.

What Is Meta's Muse Image?

Muse Image is Meta's latest artificial intelligence-powered image generation and editing tool that allows users to create, modify and manipulate images using conversational text prompts.

The feature is integrated into Meta's AI ecosystem, including WhatsApp, Instagram and the Meta AI app, and was rolled out for users in the United States on July 7.

The tool is among a growing number of text-to-image AI applications capable of generating images based on simple written instructions.

Why Is the Tool Facing Scrutiny?

The feature has sparked criticism after reports suggested it can generate images using other users' profile pictures without notifying them.

The reported capability has raised concerns around user consent, privacy and the potential misuse of personal images, prompting calls for regulatory oversight.

Krishnan indicated that the government would review the matter if complaints are formally submitted.

Meta Under Regulatory Lens in India

The latest development comes as Meta continues to face regulatory scrutiny in India across multiple products.

Earlier, the Ministry of Electronics and Information Technology (MeitY) issued a notice to WhatsApp over its proposed username feature. Separately, Instagram received a notice regarding allegations of paid advertisements linked to child sexual abuse material (CSAM) on the platform.

The review of Muse Image, if initiated, would add to the list of regulatory issues involving the technology company.

Government to Assess Impact of AI on GCC Expansion

Separately, Krishnan said the government plans to evaluate whether recent policy reforms have accelerated the growth of Global Capability Centres (GCCs) in India or whether the increasing adoption of artificial intelligence is influencing expansion plans.

"It is now time to measure the outcome of these changes, since so much had been promised as outcomes of these changes," he said.

According to Krishnan, the government will assess whether the pace of new GCC additions has improved following the reforms and examine whether AI is emerging as a factor affecting expansion decisions.

He added that enterprise adoption of AI remains relatively slow globally, presenting an opportunity for India's GCC ecosystem to support multinational companies as they scale AI deployment and digital transformation initiatives.