Generative AI can transform industries by streamlining operations and creating cost-effective content. But, legal implications must be considered. This article explores primary legal challenges. The expansive use of generative AI in content creation doesn't exempt it from legal scrutiny, especially under Indian law, which prohibits certain types of content. AI's capacity to mass-produce content can be misused to create defamatory materials, incite religious hatred, or promote terrorism. Moreover, generative AI has been implicated in fraudulent schemes like creating deepfakes or phishing campaigns. Liability for such misuse remains murky. According to the Information Technology Act of 2000, intermediaries — entities that merely transmit content — can escape liability under specific conditions. Whether AI developers can claim this status is a grey area that might be addressed by the forthcoming Digital India Act, which is expected to assign more explicit responsibilities to them.