Corporate Liability In The Age Of Artificial Intelligence: Rethinking Accountability For AI And Machine Learning Systems
- IJLLR Journal
- Dec 9, 2025
- 2 min read
Achsah Mary JO, BCOM LLB, Christ Academy Institute of Law, Bengaluru
ABSTRACT
The introduction of Artificial Intelligence (AI) and Machine Learning (ML) technologies produced profound societal changes. For instance, an AI technology can analyze vast amounts of data and a Machine Learning technology can make predictive analyses. Together, they open novel and highly productive opportunities in economically critical industries such as healthcare, finance, insurance, and education. Consequently, they create unprecedented levels of advancement and expansion. The potential of Machine Learning and AI must, however, be tempered. Transparency, accountability, and fairness are some of the equally important yet challenging issues that come with the advancement of such technologies. Some of the most critical of societal constructs become compromised, if not eliminated, by the Machine Learning and AI systems in ‘real time’ use. The ‘Black Box’ phenomenon aptly describes critical constructs of accountability and responsibility, as well as the intricacies of the automated decision systems of AI technologies. When harm occurs in a decision system, the decision algorithm offers no clear accountability.
As more and more automated systems undergo use in organizational decision systems, the systems’ radical autonomy raises fundamental legal questions. In particular, a liability gap is created and the answer to the age-old question of ‘who is liable’ (the programmer, the AI or the corporation?) in a novel context of machine AI is still eluding the legal system. In this paper, we analyze the questions arising from the liability gap.
Corporate liability reform in the era of AI is both a requirement under law and social obligation. The art of correlating technological advancement and fairness, equity, and decency to humankind will ultimately determine whether or not AI enhances or erodes legitimacy in corporate governance in the 21st century. Therefore, this paper addresses how corporate liability laws must evolve to address accountability for harms or decisions arising from autonomous AI systems.
Keywords: Artificial Intelligence, Machine Learning, Corporate Liability, Accountability, Transparency, Black Box Phenomenon, Corporate Governance.
