When McCarthy coined the term “artificial intelligence”, he meant the basics of machine learning. The algorithms building mathematical data to allow a processor make human-like choices, and make human-like predictions without any support of human emotional intelligence or human reasoning is what is labelled as computer intelligence. However, machine learning and computer intelligence cannot be compared with human reasoning and human emotional intelligence at this level where it is still in its developing phase and which has seen encouraging development in recent past decades that seems pretty alarming sometimes that tend to have a feeling of AI being a problematic development.In accordance with India’s legal code of jurisprudence, legal personality of AI must be determined, which shall tend to mean that AI too has a bundle of rights and liabilities. AI which is considered as autonomous working technology, has the capacity to think, and as these machines start interacting more with humans, there are possibilities of more legal issues to arise. Such as, who to be held accountable for any criminal liability arising from any fault of AI? Such questions have already been argued in the courts of some of the countries such as Germany and U.S.. Whereas, India by their example must be legally prepared and strategise to face such unpredicted technology in the coming future. There has been a start of a race across the world to develop law and strategize the further AI plan in their consecutive countries keeping in mind the advantages or the harm this technology shall possess. NITI Ayog released an artificial intelligence policy paper named ‘National Strategy for Artificial Intelligence’, which has considered the significance of AI in several different sectors in India. The Budget 2019 also intended to launch a national programme on AI. While all of these developments are happening on the technological front and are happening so fast, no absolute policy frameworks have been made at the forefront to manage this rapidly growing industry till date. The real question is, when will we draft a human made machine intelligence bill of rights? Who will get to decide that? And What rights and liabilities will that consist of? This paper discusses the ethical and legal implications, challenges of AI, its legal personality, following the strategies being made by U.S, Germany and India to tackle down the possible challenges of AI. This will also ensure that our interactions with AI are safe and occur as human friendly as possible in near future.