Impact Of AI And Emerging Technologies On Corporate Governance
Riya Singh, Symbiosis Law School, Pune
ABSTRACT
By improving the efficiency of the decision-making process, regulatory compliance, risk management, and communication with stakeholders, Artificial intelligence (AI) and new technologies are revolutionizing corporate governance. New technologies such as machine learning, blockchain, and big data analysis allow for greater transparency and efficiency of operations. However, such developments are associated with various legal issues concerning the obligations of the directors, accountability of algorithms, data protection, and corporate liability. Although some countries have already begun regulating the use of AI, the Indian corporate governance system under the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, does not have any specific regulations aimed at regulating AI-Based corporate decision-making.
This paper uses doctrinal and comparative methodology to evaluate the effect of AI on corporate governance in India. It explores the normative framework, court rulings, global regulations, and analysis of major failures in corporate governance in order to determine whether AI can ensure greater corporate responsibility while complying with the existing laws. The study indicates that artificial intelligence could play a very important role in improving fraud detection, assessment of risk, and transparency of the organisations, which are necessary for its effective application.
It is emphasized that AI support rather than replacement of human intelligence is crucial in governing organizations. The comprehensive act introducing statutory amendments, policies on governance of artificial intelligence, making assessments mandatory, and enhancing the level of control at the board should be introduced.
Keywords: Companies Act, 2013, SEBI, Artificial Intelligence, Corporate Governance, Director’s duties, Algorithmic Accountability, Emerging Technologies.
