The rapid advancement of generative artificial intelligence (AI), particularly deep learning, large language models, voice-cloning systems, and deepfake technologies, has transformed both digital innovation and cybercrime. AI-generated identity theft has emerged as one of the most sophisticated forms of cyber-enabled criminality, allowing offenders to fabricate realistic digital identities, impersonate individuals, manipulate biometric characteristics, and generate highly convincing synthetic evidence. These developments present unprecedented challenges for criminal investigations, digital forensic science, and judicial determination of authenticity. The Indian legal framework, despite significant reforms through the Bharatiya Nyaya Sanhita, 2023 (BNS), the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), the Bharatiya Sakshya Adhiniyam, 2023 (BSA), and the Digital Personal Data Protection Act, 2023, remains largely designed for conventional electronic evidence rather than AI-generated synthetic media.

This paper critically analyses the emerging legal and evidentiary challenges associated with AI-generated identity theft before Indian courts. Using a doctrinal legal research methodology supported by comparative legal analysis, the study evaluates the adequacy of Indian statutory provisions governing digital evidence, forensic authentication, identity-related cyber offences, and judicial treatment of AI-generated content. Comparative references are drawn from the European Union Artificial Intelligence Act, 2024, selected United States legislative initiatives, and international forensic standards to identify best practices applicable within the Indian legal system.

The study finds that the existing evidentiary framework continues to rely heavily upon certificate-based authentication mechanisms that are inadequate for detecting sophisticated AI-generated manipulation. The absence of specialised forensic infrastructure, judicial protocols for evaluating AI-generated evidence, and dedicated statutory provisions governing synthetic identities significantly weakens India's preparedness against emerging cyber threats. The paper argues for a comprehensive legal response combining legislative reform, AI-specific evidentiary standards, institutional capacity-building, judicial education, forensic innovation, and international regulatory cooperation. Such reforms are essential to preserve the integrity of digital evidence, protect constitutional rights, and strengthen public confidence in the administration of justice in the era of artificial intelligence.