Abstract
This research paper examines the scope and general applicability of liability of intermediaries under section-79 of the Information Technology Act,2000, based on the idea of the increasing use of Artificial Intelligence (Ai) by social media platforms. Section-79 establishes that conditional immunity, referred to as "Safe Harbour", to intermediaries for third-party content hosted on their platforms. In spite of that the emergence of Ai-driven technologies such as algorithmic recommendation systems, automated content moderations and targeted commercial advertising has considerably changed the role of these platforms. The primary objective of this paper is to examine whether platforms that actively organise and develop their content through Ai can continue to claim protection under Section-79 of the IT Act, 2000. The study adopts a doctrinal methodology, depending on statutory provisions, case laws, and secondary legal literature. It states that the traditional difference between passive intermediaries and active publishers is increasingly unclear. The paper further determines the effectiveness of legal frameworks and suggests reforms to address evolving challenges. In the author's view, Ai-driven platforms constantly exercise a degree of control that challenges their classification as mere intermediaries. It concludes that a balanced approach is necessary to ensure both accountability and innovation in the cyberspace.