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The Equitable Growth Approach of AI and Digital Twins

Digital Twins can be simply described as virtual replicas of physical assets or systems, powered by real-time data and advanced simulations. When this technology is combined with AI, the impact it has on enabling real-time monitoring, predictive maintenance, optimised operations, and improved design processes through the creation of virtual replicas of physical assets becomes even greater.  The greatest value of AI is its ability to make data actionable. And when combined with digital twins, these data can be collated, analysed, inefficiencies removed, and better decisions can be taken to improve efficiency and quality. 

This intersection between AI and Digital Twins holds immense potential for addressing key challenges, particularly in countries like India, which is rapidly embracing digital adoption to achieve its economic ambitions and sustainability goals. According to Salesforce’s most recent survey on generative AI use among the general population within the U.S., UK, Australia and India, 75% of generative AI users are looking to automate repetitive tasks and use generative AI for work communications. India is particularly looking towards a rapid digital adoption, economic ambitions, and sustainable developments to be achieved through AI adoption. This blog discuss the intersection of equitable growth, sustainability, and AI-driven policies in India.

Sustainability and the Path Ahead: Digital Twin and AI-Driven Solutions 

India faces sustainability challenges which are mainly associated with issues such as urban congestion, the rising demand for energy along with climate change and environmental degradation. AI and Digital Twins provide solutions for real-time simulations and predictive analysis. Some of the examples are its applications in sustainable urban planning such as smart cities like the Indore Smart City Initiative and traffic optimisation, energy efficiency/optimisation through AI-driven renewable energy projects and power grid optimisation and even water resource management through leak detection, equitable distribution and conservation.

The need is to balance innovation with regulation, particularly, underscoring the importance of ethical and sustainable deployment of AI and digital twins and addressing data privacy with AI ethics with recent developments such as the India’s evolving AI policy landscape, including the National Strategy for Artificial Intelligence and its focus on AI for All, regulatory frameworks such as  DPDP Act and the manner in which they address AI ethics, data privacy, and digital governance.

The need is to initiate targeted policies that promote research and development in AI and digital twin technologies, skill development and partnerships with the private sector, think tanks, nonprofits and others. Also, collaborations at the global level would include aligning our domestic policies with global AI and sustainability initiatives and leveraging the international frameworks for climate tech and smart infrastructure. 

Cyberpeace Outlook

As part of specific actions, policymakers need to engage in proactive governance to ensure the responsible use and development of AI. This includes enacting incentive schemes for sustainable AI projects and strengthening the enforcement of data privacy laws. Industry leaders must support equitable access to AI and digital twin technologies and develop tailored AI tools for resource-constrained settings, particularly in India. Finally, researchers need to drive innovation in alignment with sustainability goals, such as those related to agriculture and groundwater management.

References

• https://economictimes.indiatimes.com/tech/artificial-intelligence/technologies-like-ai-and-digital-twins-can-tackle-challenges-like-equitable-growth-to-sustainability-wef/articleshow/117121897.cms 
• https://www.salesforce.com/news/stories/generative-ai-statistics/
• https://www.mdpi.com/2673-2688/4/3/38 ‍
• https://www.ibm.com/think/topics/generative-ai-for-digital-twin-energy-utilities

Introduction 

As the world is being "Digitally Interlaced", cyber security has become a continuous wrangle. The “Gambling industry” is considered an incredibly lucrative mark for cybercriminals, principally due to the enormous quantities of cash on hand and the sensitive details it processes day to day. Cybercriminals may use susceptibilities in gambling scaffolds to achieve financial scams or launder unlawful funds. An analysis by Security Scorecard discovered that the online gambling industry was ranked third in the possibility of encountering a cyber attack, following the energy and financial services sectors. Similarly, Online gambling is a bending matter that demands meticulous contemplation by policymakers and nationals. The incredible rise of online gambling has led to a terse acclivity in unlawful activities such as online scams, fraud, etc. Also, online sports gambling has become a thriving endeavour in contemporary years as millions of people are putting stakes and gambles on their electronic devices.

The Challenges

Online gambling has thus become a widespread frolicking for numerous youngsters, with the industry tossed to be worth billions of dollars in the forthcoming decades. The prominent cyber security challenges in the gambling industry are money laundering, financial laundering, ransomware, personal information theft, data breaches, distributed Denial of Service (DDoS), system disruptions and Insider perils and employee malfeasance. Challenges of online gambling also include being properly not regulated and a lack of social interaction with near and dear ones. The spread of Internet gambling has presented many problems affecting consumer behaviour online, motivations to gamble, problem gambling, security of websites, and the righteousness and virtue of the games. The rise of online gambling among young people due to the lack of clear regulations has likewise produced an abundant backdrop for financial ruination.

Web games and betting are among the fastest-evolving areas of the Internet. Over the past several years, there has been an international flare-up in online gambling, permitting customers to play from the convenience of home, work, and public locations. Numerous offshore betting websites and apps usually permit parties to win in the start with sound returns, whereas after the user gets addicted and invests considerable sums, they either keep failing or have the website refuse to cash out the winnings. Also, the information demonstrates that online games have been employed to commit wrongdoings (Child sexual exploitive material, religious conversion, cyberbullying, fraud, betting in virtual online casinos, etc.)

India's laws and regulations surrounding online gambling are complex and constantly evolving. While the legal framework is not entirely clear, a few state in India have their own set of rules.

Recently In April 2023, the Union Ministry of Electronics and Information Technology (“MeitY”), by virtue of the rule-making powers available to the central government under the Information Technology Act, 2000 (“IT Act 2000”), implemented a new central legal framework for online gaming through amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“IT Rules 2021”).  These amendments (“Online Gaming Rules”) propose a light-touch, co-regulatory regime whereby MeitY-recognised, independent self-regulatory bodies (“SRB”) will verify whether an “online real-money game” is to be made available to the general public or not – in accordance with the baseline criteria prescribed by the Online Gaming Rules.

The Online Gaming Rules attempt to regulate online gaming platforms by treating them as an “online gaming intermediary” (“OGI”) and prescribing intermediary due diligence obligations for them under the IT Rules 2021.  An OGI has been defined in the Online Gaming Rules as “any intermediary that enables the users of its computer resource to access one or more online games”.  Under the Online Gaming Rules, an online game can be a “permissible online game” if (i) it is not an online real-money game, or (ii) it is an online real-money game but is “verified” by an SRB in accordance with the baseline criteria prescribed by the Online Gaming Rules and any additional criteria prescribed by the SRB itself.

Global Perspective

The global gaming industry worth over US$227 billion in 2022 is further projected to grow to US$312 billion by 2027. Several countries have set regulatory frameworks about online gaming, though these are skewed, concentrating mainly on gambling and circumventing numerous of the more typical cyber threats. The US spends about $60 billion annually on online gambling and sports betting. In Europe, gambling is an even larger moneymaker. Also, numerous countries in Europe, like the UK, have legalised gambling. Nevertheless, it is prohibited for a US based company to operate an online gambling site. Yet, sports betting online is permitted in some states.

Today, though the gaming market has been overpowered by China and the US, future growth in the sector is anticipated to come from emerging economies like India with increasing populations. The permitted status of online gambling in India is nonetheless imprecise, vamoosing space for exploitation by cyber criminals and disarray for players involved. One of the climactic points that ought to be addressed is the sudden upsurge of online games, which increases gambling. Skill-based games such as poker, rummy etc., have additionally been developed to circumvent the legal definition of gambling in India. The recent instances of the online gaming industry not being properly regulated have also come to light in India. For instance, the Enforcement Directorate (ED) is still investigating the vast Mahadev Online Betting scandal, exposing an unknown money laundering method using Unified Payment Interface (UPI) IDs. Also, the Cyber Cell in Agra has taken proactive action against copyright violations, illegal online gambling and betting activities, shutting down 27 Illegal cricket betting sites in major operations, safeguarding several lakhs of Indians with thousands of crores from being transferred to overseas shores principally China. 

Consequently, though India has announced new regulations on online gaming, its contemporary policy framework cannot contend with the problems endangering this sector. The Public Gambling Act of 1867 makes it unlawful to use a public gambling house or to be seen in one. Nevertheless, the act does not explicitly cite online gambling, leading to further interpretation. The Ministry of Home Affairs (MHA) has released a further awareness campaign for offshore illegal gambling apps, notifying users to be mindful of foreign apps as they may be fraudulent and might induce monetary damage to the user. Also, state laws control gambling in India with each state having its own directive on the subject.  Yet, the Supreme Court of India has maintained that skilled games are not gambling and are thus legal. Furthermore, the Information Technology (IT) Act, of 2000 does not precisely handle online gambling or games that enable gambling.

Today, developers have strived for new ways to monetise the growing popularity of online gaming, which oversaw the creation of in-game currencies that can be bought using actual money, usually through credit cards.  Several nations have prohibited the usage of in-game currency and loot boxes, considering them a kind of online gambling. The in-game currency has thus caused much disagreement about becoming a state of hunting monetisation by developers, especially targeting minor or newbie players. The gambling industry, therefore, faces unique cybersecurity challenges that require a comprehensive and proactive approach to cybersecurity.

Conclusion

Presently, there are approximately 3.09 billion active video game players worldwide, and the number is expected to reach 3.32 billion by 2024 as of 2023. In the contemporary digital era, information is priceless, and encryption acts as a necessary means to safeguard it. Thus, Regulators are working to maintain the swiftness of shift in the industry, as the dearth of transparency in the law has made it challenging to implement regulations. There is also less awareness about cyber security in India due to the following grounds such as the lack of ethical hackers in the country, companies in India lacking focus on cyber security and hiring a team of ethical hackers and cyber security experts. Furthermore, there has been a lack of knowledge among the citizens as well. 

It is essential to realise the conceivable social and economic consequences and take measures to handle the online gambling industry. The industry has thus been undersized in the mode of research following online crime and Internet gambling, even though it is an acute emphasis.  There is also a pressing necessity to rebuild these regulations to tackle the more unbridled cyber security hazards swarming the gaming industry. Similarly, there is an urgent need for governments and policymakers around the world to start paying more attention to the gaming industry as cyber security threats continue to rise. There should be a further need to strengthen the regulatory framework, establish Self Regulatory Organizations (SROs), create ethical gaming designs and increase awareness among gamers. The Government of India should consider devising its own rating system to rate games so that players under 18 cannot access them.

Eventually, cyber security is a shared commitment, and everyone in the online gambling ecosystem must function jointly to provide a secure and safe setting for all.

References:

• https://truefort.com/gambling-industry-cybersecurity/
• https://www.orfonline.org/research/cybersecurity-threats-in-online-gaming-learnings-for-india
• https://www.hackread.com/chinese-scammers-cloned-websites-gambling-network/
• https://www.civilsdaily.com/news/cybersecurity-threats-from-online-gaming/
• https://www.linkedin.com/pulse/legal-considerations-online-gambling-india-sudden-increase-mathur/
• https://www.jsheld.com/insights/articles/the-importance-of-cybersecurity-in-the-online-sports-betting-industry
• https://www.the420.in/agra-cyber-cell-takes-down-27-illegal-betting-sites/
• https://g2g.news/gaming/ministry-of-home-affairs-releases-new-awareness-campaign-for-online-gaming-in-india/
• https://smestreet.in/technology/kaspersky-warns-of-increased-phishing-scams-and-data-breaches-in-apac-for-2024-2381601
• https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/govt-bans-mahadev-other-illegal-betting-apps-cyber-attacks-against-india-spike/articleshow/104996017.cms?from=mdr
• https://cipher.com/cybersecurity-for-gambling/
• https://www.mangalorean.com/tightening-the-reins-indian-government-blocks-over-550-illegal-betting-and-gambling-apps/
• https://cybersecurityasean.com/news-press-releases/kaspersky-predicts-rise-cyber-threats-across-apac-2024
• https://www.cnbctv18.com/technology/mahadev-betting-app-scam-ed-money-laundering-upi-celebrities-under-scanner-17815661.htm
• https://iclg.com/practice-areas/gambling-laws-and-regulations/india

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Introduction

To every Indian’s pride, the maritime sector has seen tremendous growth under various government initiatives. Still, each step towards growth should be given due regard to security measures. Sadly, cybersecurity is still treated as a secondary requirement in various critical sectors, let alone to protect the maritime sector and its assets. Maritime cybersecurity includes the protection of digital assets and networks that are vulnerable to online threats. Without an adequate cybersecurity framework in place, the assets remain at risk from cyber threats, such as malware and scams, to more sophisticated attacks targeting critical shore-based infrastructure. Amid rising global cyber threats, the maritime sector is emerging as a potential target, underscoring the need for proactive security measures to safeguard maritime operations. In this evolving threat landscape, assuming that India's maritime domain remains unaffected would be unrealistic.

Overview of India’s Maritime Sector   

India’s potential in terms of its resources and its ever-so-great oceans. India is well endowed with its dynamic 7,500 km coastline, which anchors 12 major ports and over 200 minor ones. India is strategically positioned along the world’s busiest shipping routes, and it has the potential to rise to global prominence as a key trading hub. As of 2023, India’s share in global growth stands at a staggering 16%, and India is reportedly running its course to become the third-largest economy, which is no small feat for a country of 1.4 billion people. This growth can be attributed to various global initiatives undertaken by the government, such as “Sagarmanthan: The Great Oceans Dialogue,” laying the foundation of an insightful dialogue between the visionaries to design a landscape for the growth of the marine sector. The rationale behind solidifying a security mechanism in the maritime industry lies in the fact that 95% of the country’s trade by volume and 70% by value is handled by this sector. 

Current Cybersecurity Landscape in the Maritime Sector 

All across the globe, various countries are recognising the importance of their seas and shores, and it is promising that India is not far behind its western counterparts. India has a glorious history of seas that once whispered tales of Trade, Power, and Civilizational glory, and it shall continue to tread its path of glory by solidifying and securing its maritime digital infrastructure. The path brings together an integration of the maritime sector and advanced technologies, bringing India to a crucial juncture – one where proactive measures can help bridge the gap with global best practices. In this context, to bring together an infallible framework, it becomes pertinent to incorporate IMO’s Guidelines on maritime cyber risk management, which establish principles to assess potential threats and vulnerabilities and advocate for enhanced cyber discipline. In addition, the guidelines that are designed to encourage safety and security management practices in the cyber domain warn the authorities against procedural lapses that lead to the exploitation of vulnerabilities in either information technology or operational technology systems. 

Anchoring Security: Global Best Practices & Possible Frameworks

The Asia-Pacific region has not fallen behind the US and the European Union in realising the need to have a dedicated framework, with the growing prominence of the maritime sector and countries like Singapore, China, and Japan leading the way with their robust frameworks. They have in place various requirements that govern their maritime operations and keep in check various vulnerabilities, such as Cybersecurity Awareness Training, Cyber Incident Reporting, Data Localisation, establishing secure communications, Incident management, penalties, etc.

Every country striving towards growth and expanding its international trade and commerce must ensure that it is secure from all ends to boost international cooperation and trust. On that note, the maritime sector has to be fortified by placing the best possible practices or a framework that is inclined towards its commitment to growth. The following four measures are indispensable to this framework, and in the maritime industry, they must be adapted to the unique blend of Information Technology (IT) and Operational Technology (OT) used in ships, ports, and logistics. The following mechanisms are not exhaustive in nature but form a fundamental part of the framework:

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• Risk Assessment: Identifying, analysing, and ensuring that all systems that are susceptible to cyber threats are prioritized and vulnerability scans are conducted of vessel control systems and shore-based systems. The critical assets that have a larger impact on the whole system should be kept formidable in comparison to other systems that may not require the same attention.
• Access Control: Restrictions with regard to authorisation, wherein access must be restricted to verified personnel to reduce internal threats and external breaches. 
• Incident Response Planning: The nature of cyber risks is inherently dynamic in nature; there are no calls for cyber attacks or warfare techniques. Such attacks are often committed in the shadows, so as to require an action plan to respond to and to recover from cyber incidents effectively. 
• Continuous Staff Training: Regularly educating all levels of maritime personnel about cyber hygiene, threat trends, and secure practices. 

CyberPeace Suggests: Legislative & Executive Imperatives

It can be said with reasonable foresight that the Indian maritime sector is in need of a national maritime cybersecurity framework that operates in cooperation with the international framework. The national imperatives will include robust cyber hygiene requirements, real-time threat intelligence mechanisms, incident response obligations, and penalties for non-compliance. The government must strive to support Indian shipbuilders through grants or incentives to adopt cyber-resilient ship design frameworks. 

The legislative quest should be to incorporate the National Maritime Cybersecurity Framework with the well-established CERT-In guidelines and data protection principles. The one indispensable requirement set under the framework should be to mandate Cybersecurity Awareness Training to help deploy trained personnel equipped to tackle cyber threats. The rationale behind such a requirement is that there can be no “one-size-fits-all” approach to managing cybersecurity risk, which is dynamic and evolving in nature, and the trained personnel will play a key role in helping establish a customised framework. 

References

• https://pib.gov.in/PressNoteDetails.aspx?NoteId=153432&reg=3&lang=1 
• https://bisresearch.com/industry-report/global-maritime-cybersecurity-market.html#:~:text=Maritime%20cybersecurity%20involves%20safeguarding%20digital,and%20protection%20against%20potential%20risks. 
• https://www.shipuniverse.com/2025-maritime-cybersecurity-regulations-a-simplified-breakdown/#:~:text=Japan%3A,for%20incident%20response%20and%20recovery. 
• https://wwwcdn.imo.org/localresources/en/OurWork/Security/Documents/MSC-FAL.1-Circ.3-Rev.2%20-%20Guidelines%20On%20Maritime%20Cyber%20Risk%20Management%20(Secretariat)%20(1).pdf 

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