High costs for AI solution to monitor fake news raises eyebrows

Bengaluru: A Rs 67-crore proposal to deploy artificial intelligence (AI) to monitor social media for fake news and misinformation has come under scrutiny, with the finance department raising concerns over the high costs involved. Proposed by the home department and approved by the cabinet, the project drew objections from the finance department over the allocation of Rs 33 crore toward software licensing for three years. The plan envisages deployment of the system across 71 locations in all 31 districts.
In one of its observations, the finance department said: "...Since this activity is to monitor websites, a central location with one licence will be enough with the help of artificial intelligence. This item so identified can be transferred to districts that can act by registering an FIR. That process can be done by integrating with the existing system." Official estimates suggest each licence would cost Rs 15.7 lakh per year, totalling Rs 47.1 lakh over three years. The finance department also flagged proposed consulting charges, suggesting the expense — approximately 15% of the total system setup cost — appeared to be on the "higher side". It pointed out that the IT-BT department had previously spent Rs 80 lakh for a three-month period, which translated to Rs 5,000 per month. "Hence, the cost proposed in the cabinet note needs to be examined in this regard," the finance department warned. However, defending the proposal, the home department said the licensing fee would remain "unchanged" for three years and argued that the subscription model offered greater benefits than perpetual licenses. It said the payment would ensure regular software updates and security improvements and would also cover data storage costs for the three-year period. "More importantly, this software does not indulge in posts or creating social media awareness but uses AI to track and provide details, in near real time, of posts that indulge in misinformation, disinformation, hate speech and harmful narratives on various social media platforms," the home department said. The department also dismissed comparisons with the IT-BT department's expenditure, stating that the Rs 80 lakh outlay was for a "pilot project" and not for full-fledged statewide implementation. Meanwhile, the home department has agreed to establish a technical advisory panel, as proposed by the e-governance department, to examine the company selected and its software details once the tender is finalised.