Algorithmic Governance Under The Companies Act, 2013: Legal Accountability And Fiduciary Duties In AI-Assisted Decision-Making
- IJLLR Journal
- 2 days ago
- 1 min read
Yashasvi Sharma, BBA LLB (Hons.), National Law University, Shimla
ABSTRACT
The growing integration of Artificial Intelligence (AI) into corporate decision- making is transforming how boards oversee strategy, risk, and compliance. While AI enhances efficiency and analytical capabilities, it also creates significant challenges for directors’ legal accountability under Indian corporate law. This paper examines the interaction between AI-assisted governance and the fiduciary duties of directors, including care, skill, diligence, and loyalty, as prescribed under the Companies Act, 2013. Through doctrinal analysis and lessons from international frameworks in the EU and the U.S., it identifies gaps in India’s regulatory landscape and considers potential liability scenarios for both directors and corporations. The study proposes practical solutions, such as algorithmic due diligence, transparency standards, and AI auditing mechanisms, aimed at ensuring that technological adoption strengthens governance while preserving legal responsibility. By addressing the intersection of law and technology, this research provides actionable insights for regulators, boards, and legal practitioners navigating the evolving corporate environment.
Keywords: Algorithmic Governance; Fiduciary Duties of Directors; Corporate Accountability.
