Artificial intelligence (AI) is increasingly participating in creative processes such as writing, music composition, and visual art production, raising complex questions for copyright law worldwide. In India, the Copyright Act, 1957 is premised on a human-centric understanding of authorship, reflecting the traditional assumption that creativity originates from natural persons. However, the growing capacity of AI systems to generate content with minimal or no human intervention challenges this foundational premise and creates uncertainty regarding authorship, ownership, liability, and the scope of legal protection for AI-generated works. This paper examines the widening gap between rapid technological development and India’s existing copyright framework. Adopting a doctrinal and comparative research methodology, the study analyses statutory provisions and judicial interpretations under Indian copyright law while comparing regulatory approaches adopted in jurisdictions such as the United Kingdom, the United States, and the European Union. Through this analysis, the paper identifies significant doctrinal and practical limitations in the current Indian legal regime, particularly its inability to adequately address authorship questions arising from algorithmically generated creative outputs. The study argues that the present framework is insufficient to resolve emerging disputes in technologically driven creative industries. To address this lacuna, it proposes the exploration of policy alternatives such as a carefully designed sui generis protection regime or a limited rights model that recognizes economic interests in AI-generated works without undermining the central role of human creativity in copyright law. Such reforms would provide greater legal certainty, encourage innovation, and support investment in AI-driven creative sectors. Ultimately, the paper contends that timely legal reform is essential for aligning India’s copyright system with contemporary technological realities while preserving the normative foundations of human intellectual authorship.