Regulation Of Artificial Intelligence In Corporate Governance: Legal Challenges And The Need For Accountability In India
- IJLLR Journal
- 2 hours ago
- 1 min read
G.J. Annie Beulet Mary, Assistant Professor in GTN Law College, Dindigul
D.M. Salai Siva Keerthana, Assistant Professor in GTN Law College, Dindugal.
ABSTRACT
The integration of Artificial Intelligence (AI) into corporate governance has significantly transformed decision-making processes within modern corporations, offering enhanced efficiency, predictive capabilities and data- driven insights. In India, corporations are increasingly adopting AI technologies in areas such as risk assessment, compliance monitoring, financial forecasting and strategic management. However, the growing reliance on AI systems raises complex legal and ethical concerns, particularly regarding accountability, transparency and liability. This research paper critically examines the regulatory landscape governing the use of AI in corporate governance and evaluates the adequacy of existing legal frameworks in addressing the challenges posed by automated decision- making. The study analyses the role of corporate governance principles under the Companies Act, 2013 and the regulatory implications of data- driven technologies under the Information Technology Act, 2000. It further explores key issues such as the “black box” nature of AI systems, algorithmic bias, data privacy risks and the absence of clear liability standards when AI- driven decisions lead to corporate harm. By drawing on comparative international approaches and evolving regulatory models, the paper highlights the urgent need for a comprehensive legal framework that ensures responsible AI deployment while safeguarding stakeholder interests. The study concludes by proposing policy recommendations aimed at strengthening accountability mechanisms, enhancing regulatory oversight and promoting ethical AI practices within corporate structures. Ultimately, the paper underscores the necessity of aligning technological innovation with legal responsibility to ensure sustainable and transparent corporate governance in the digital age.
Keywords: Artificial Intelligence, Corporate Governance, Algorithmic Accountability, Data Privacy, Corporate Liability
