This is Part II of a two-part post examining the implications of India’s data protection and intermediary frameworks for artificial intelligence (AI). Part II discusses how the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026 affect AI-enabled platforms, particularly through the regulation of synthetically generated information (SGI), labeling and metadata requirements, enhanced due diligence, verification mechanisms, and shortened takedown and grievance-redressal timelines. It further considers the implications of these requirements for AI developers, deployers, and investors, including the need for technical modifications, stronger data governance and provenance capabilities, compliance-focused due diligence, contractual and insurance protections, and the emergence of business opportunities in consent management and privacy-enhancing technologies.