Should Corporate Boards Include AI systems? Legal And Ethical Implications Of Algorithmic Board Members
- IJLLR Journal
- Jun 1
- 1 min read
Isha Taneja, LL.M., Symbiosis International University, Pune
ABSTRACT
The application of artificial intelligence (AI) in corporate governance, particularly in terms of being a board member, is a new and complicated challenge at the juncture of law, ethics, and technology. This research paper considers the legal and ethical implications of using AI systems as corporate board members. It recognizes current literature, reviews legal structures, and considers case studies in which AI has already been used as a part of a board. The paper attempts to assess whether AI is capable of being effective board members and what challenges exist. The research demonstrates that in various jurisdictions, the legal structure does not allow AI to take on a director position, as those legal frameworks state that positions of directors can only be held by natural persons. Further, using AI as a board member raises ethical issues about bias, responsibility, and the inability of AI to replace human judgment in decision making in governance. This paper concludes that AI has tremendous potential to improve how decisions are made, but considerable legal changes and ethical positions will need to be taken to implement the use of AI on corporate boards. The conclusion recommends developing new legal categories of AI participation, creating ethical standards for AI use in governance, and establishing necessary research for the implications of AI serving on boards.
Keywords: Artificial Intelligence, Corporate Governance, Board of Directors, Legal Frameworks, Ethical Implications
