SC sets aside Rs.425-cr fine on Guj diamantaire, cautions on AI use
New Delhi, Sept. 3 -- The Supreme Court on Wednesday set aside an order issued by a customs officer in Gujarat slapping a penalty of Rs.425 crore against a diamond trader which had relied upon AI-generated case laws that did not exist.
Remanding the matter back to be decided by an officer of the same rank, a bench of justices Dipankar Datta and Sheel Nagu said that while Artificial Intelligence can be an "assistive tool", it will be imprudent and dangerous if it assumes the driver seat in adjudicating decisions.
"Artificial Intelligence (AI) may well serve as training wheels but entrusting it with the pilot's seat would be both imprudent and dangerous," the bench said. Setting aside the order of October 8, 2025 passed by the Additional Comm...
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