Introduction and Brief Analysis

A movie named “The Artifice Girl” portrayed A law enforcement agency developing an AI-based personification of a 12-year-old girl who appears to be exactly like a real person. Believing her to be an actual girl, perpetrators of child sexual exploitation were caught attempting to seek sexual favours. The movie showed how AI aided law enforcement, but the reality is that the emergence of Artificial Intelligence has posed numerous challenges in multiple directions. This example illustrates both the promise and the complexity of using AI in sensitive areas like law enforcement, where technological innovation must be carefully balanced with ethical and legal considerations.

Detection and Protection tools are constantly competing with technologies that generate content, automate grooming and challenge legal boundaries. Such technological advancements have provided enough ground for the proliferation of Child Sexual Exploitation and Abuse Material (CSEAM). Also known as child pornography under Section 2 (da) of Protection of Children from Sexual Offences Act, 2012, it defined it as - “means any visual depiction of sexually explicit conduct involving a child which includes a photograph, video, digital or computer-generated image indistinguishable from an actual child and image created, adapted, or modified, but appears to depict a child.”

Artificial Intelligence is a category of technologies that attempt to shape human thoughts and behaviours using input algorithms and datasets. Two Primary applications can be considered in the context of CSEAM: classifiers and content generators. Classifiers are programs that learn from large data sets, which may be labelled or unlabelled and further classify what is restricted or illegal. Whereas generative AI is also trained on large datasets, it uses that knowledge to create new things. Majority of current AI research related to AI for CSEAM is done by the use of Artificial neural networks (ANNs), a type of AI that can be trained to identify unusual connections between items (classification) and to generate unique combinations of items (e.g., elements of a picture) based on the training data used.

Current Legal Landscape

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The legal Landscape in terms of AI is yet unclear and evolving, with different nations trying to track the evolution of AI and develop laws. However, some laws directly address CSEAM. The International Centre for Missing and Exploited Children (ICMEC) combats Illegal sexual content involving children. They have a “Model Legislation” for setting recommended sanctions/sentencing. According to research performed in 2018, Illegal sexual content involving children is illegal in 118 of the 196 Interpol member states. This figure represents countries that have sufficient legislation in place to meet 4 or 5 of the 5 criteria defined by the ICMEC.

CSEAM in India can be reported on various portals like the ‘National Cyber Crime Reporting Portal’. Online crimes related to children, including CSEAM, can be reported to this portal by visiting cybercrime.gov.in. This portal allows anonymous reporting, automatic FIR registration and tracking of your complaint. ‘I4C Sahyog Portal’ is another platform managed by the Indian Cyber Crime Coordination Centre (I4C). This portal integrates with social media platforms.

The Indian legal front for AI is evolving and CSEAM is well addressed in Indian laws and through judicial pronouncements. The Supreme Court judgement on Alliance and Anr v S Harish and ors is a landmark in this regard. The following principles were highlighted in this judgment.

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• The term “child pornography” should be substituted by “Child Sexual Exploitation and Abuse Material” (CSEAM) and shall not be used for any further judicial proceeding, order, or judgment. Also, parliament should amend the same in POCSO and instead, the term CSEAM should be endorsed.
• Parliament to consider amending Section 15 (1) of POCSO to make it more convenient for the general public to report by way of an online portal.
• Implementing sex education programs to give young people a clear understanding of consent and the consequences of exploitation. To help prevent Problematic sexual behaviour (PSB), schools should teach students about consent, healthy relationships and appropriate behaviour.
• Support services to the victims and rehabilitation programs for the offenders are essential.
• Early identification of at-risk individuals and implementation of intervention strategies for youth.

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Distinctive Challenges

According to a report by the National Centre for Missing and Exploited Children (NCMEC), a significant number of reports about child sexual exploitation and abuse material (CSEAM) are linked to perpetrators based outside the country. This highlights major challenges related to jurisdiction and anonymity in addressing such crimes. Since the issue concerns children and considering the cross-border nature of the internet and the emergence of AI, Nations across the globe need to come together to solve this matter. Delays in the extradition procedure and irregular legal processes across the jurisdictions hinder the apprehension of offenders and the delivery of justice to victims.

CyberPeace Recommendations

For effective regulation of AI-generated CSEAM, laws are required to be strengthened for AI developers and trainers to prevent misuse of their tools. AI should be designed with its ethical considerations, ensuring respect for privacy, consent and child rights. There can be a self-regulation mechanism for AI models to recognise and restrict red flags related to CSEAM and indicate grooming or potential abuse.

A distinct Indian CSEAM reporting portal is urgently needed, as cybercrimes are increasing throughout the nation. Depending on the integrated portal may lead to ignorance of AI-based CSEAM cases. This would result in faster response and focused tracking. Since AI-generated content is detectable. The portal should also include an automated AI-content detection system linked directly to law enforcement for swift action.

Furthermore, International cooperation is of utmost importance to win the battle of AI-enabled challenges and to fill the jurisdictional gaps. A united global effort is required. Using a common technology and unified international laws is essential to tackle AI-driven child sexual exploitation across borders and protect children everywhere. CSEAM is an extremely serious issue. Children are among the most vulnerable to such harmful content. This threat must be addressed without delay, through stronger policies, dedicated reporting mechanisms and swift action to protect children from exploitation.

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References:

• https://www.sciencedirect.com/science/article/pii/S2950193824000433?ref=pdf_download&fr=RR-2&rr=94efffff09e95975
• https://aasc.assam.gov.in/sites/default/files/swf_utility_folder/departments/aasc_webcomindia_org_oi d_4/portlet/level_2/pocso_act.pdf
• https://www.manupatracademy.com/assets/pdf/legalpost/just-rights-for-children-alliance-and-anr-vs-s‍harish-and-ors.pdfhttps://www.icmec.org‍https://www.missingkids.org/theissues/generative-ai

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Introduction

According to Statista, the global artificial intelligence software market is forecast to grow by around 126 billion US dollars by 2025. This will include a 270% increase in enterprise adoption over the past four years. The top three verticals in the Al market are BFSI (Banking, Financial Services, and Insurance), Healthcare & Life Sciences, and Retail & e-commerce. These sectors benefit from vast data generation and the critical need for advanced analytics. Al is used for fraud detection, customer service, and risk management in BFSI; diagnostics and personalised treatment plans in healthcare; and retail marketing and inventory management.

The Chairperson of the Competition Commission of India’s Chief, Smt. Ravneet Kaur raised a concern that Artificial Intelligence has the potential to aid cartelisation by automating collusive behaviour through predictive algorithms. She explained that the mere use of algorithms cannot be anti-competitive but in case the algorithms are manipulated, then that is a valid concern about competition in markets.

This blog focuses on how policymakers can balance fostering innovation and ensuring fair competition in an AI-driven economy. 

What is the Risk Created by AI-driven Collusion?

AI uses predictive algorithms, and therefore, they could lead to aiding cartelisation by automating collusive behaviour. AI-driven collusion could be through:

• The use of predictive analytics to coordinate pricing strategies among competitors.
• The lack of human oversight in algorithm-induced decision-making leads to tacit collusion (competitors coordinate their actions without explicitly communicating or agreeing to do so).

AI has been raising antitrust concerns and the most recent example is the partnership between Microsoft and OpenAI, which has raised concerns among other national competition authorities regarding potential competition law issues. While it is expected that the partnership will potentially accelerate innovation, it also raises concerns about potential anticompetitive effects such as market foreclosure or the creation of barriers to entry for competitors and, therefore, has been under consideration in the German and UK courts. The problem here is in detecting and proving whether collusion is taking place. 

The Role of Policy and Regulation

The uncertainties induced by AI regarding its effects on competition create the need for algorithmic transparency and accountability in mitigating the risks of AI-driven collusion. It leads to the need to build and create regulatory frameworks that mandate the disclosure of algorithmic methodologies and establish a set of clear guidelines for the development of AI and its deployment. These frameworks or guidelines should encourage an environment of collaboration between competition watchdogs and AI experts. 

The global best practices and emerging trends in AI regulation already include respect for human rights, sustainability, transparency and strong risk management. The EU AI Act could serve as a model for other jurisdictions, as it outlines measures to ensure accountability and mitigate risks. The key goal is to tailor AI regulations to address perceived risks while incorporating core values such as privacy, non-discrimination, transparency, and security.

Promoting Innovation Without Stifling Competition

Policymakers need to ensure that they balance regulatory measures with innovation scope and that the two priorities do not hinder each other. 

1. Create adaptive and forward-thinking regulatory approaches to keep pace with technological advancements that take place at the pace of development and allow for quick adjustments in response to new AI capabilities and market behaviours.n
2. Competition watchdogs need to recruit domain experts to assess competition amid rapid changes in the technology landscape. Create a multi-stakeholder approach that involves regulators, industry leaders, technologists and academia who can create inclusive and ethical AI policies. 
3. Businesses can be provided incentives such as recognition through certifications, grants or benefits in acknowledgement of adopting ethical AI practices. 
4. Launch studies such as the CCI’s market study to study the impact of AI on competition. This can lead to the creation of a driving force for sustainable growth with technological advancements. 

Conclusion: AI and the Future of Competition

We must promote a multi-stakeholder approach that enhances regulatory oversight, and incentivising ethical AI practices. This is needed to strike a delicate balance that safeguards competition and drives sustainable growth. As AI continues to redefine industries, embracing collaborative, inclusive, and forward-thinking policies will be critical to building an equitable and innovative digital future. 

The lawmakers and policymakers engaged in the drafting of the frameworks need to ensure that they are adaptive to change and foster innovation. It is necessary to note that fair competition and innovation are not mutually exclusive goals, they are complementary to each other. Therefore, a regulatory framework that promotes transparency, accountability, and fairness in AI deployment must be established.

References

• https://www.thehindu.com/sci-tech/technology/ai-has-potential-to-aid-cartelisation-fair-competition-integral-for-sustainable-growth-cci-chief/article69041922.ece 
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html 
• https://www.ey.com/en_in/insights/ai/how-to-navigate-global-trends-in-artificial-intelligence-regulation#:~:text=Six%20regulatory%20trends%20in%20Artificial%20Intelligence&text=These%20include%20respect%20for%20human,based%20approach%20to%20AI%20regulation. ‍
• https://www.business-standard.com/industry/news/ai-has-potential-to-aid-fair-competition-for-sustainable-growth-cci-chief-124122900221_1.html

Executive Summary: 
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Amid the ongoing conflict in West Asia involving the United States, Israel and Iran, a video is being widely circulated on social media with the claim that Iran attacked the headquarters of tech giants Apple and Microsoft in Israel. The clip shows a building engulfed in flames, with firefighters attempting to douse the fire. However, research by the CyberPeace found that the viral video is AI-generated and is being falsely linked to the ongoing conflict to spread misinformation.

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Claim:
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An Instagram user ‘bharat_updatenews’ shared the video on March 19, 2026, claiming that Iran had launched an attack on major tech company headquarters, including Apple and Microsoft, in Israel. The post suggested that the incident had raised serious security concerns and was being widely reported by international media.

Link: https://www.instagram.com/bharat_updatenews/reel/DWEUhLEAKaw

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Fact Check:
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To verify the claim, we extracted keyframes from the viral video and conducted a reverse search using Google Lens. During this process, we found the same video on a TikTok account named ‘dailyupdate122’, where it had been uploaded on March 15, 2026.

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The video on this account was clearly labelled as “AI-generated media.” The account also featured several other AI-generated videos, raising doubts about the authenticity of the viral clip. Following this, we analysed the video using the AI detection tool Hive Moderation. The results indicated that the video is nearly 100 percent AI-generated. The tool further suggested with over 98 percent probability that the clip may have been created using OpenAI’s Sora or a similar AI video generation model.

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Conclusion:

The viral claim that Iran attacked Apple and Microsoft headquarters in Israel is false. The video circulating online is AI-generated and has no connection to the ongoing conflict in West Asia.

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