The Rise Of Artificial Intelligence In Corporate Governance In India

Sukanya Roy, OP Jindal Global University

Introduction

It has become a common saying among people these days that Artificial Intelligence or AI, as it is commonly called, is soon going to take over humanity. While this may be a blatant exaggeration stemming out of insecurities of many, it is not untrue that AI is swiftly capturing several industries, including those where one could not have imagined smooth operation by anything or anyone other than a human being himself. Today, AI is everywhere. From our bedrooms to corporate boardrooms, it is hard to deny, or even ignore, the role that AI is playing in making lives more feasible. It is in this very same way that AI is now being used to facilitate and regulate corporate governance mechanisms in the working of corporations. And while it may have taken some time (and while it might still take more), India is fast catching on to the current worldwide trend of relying on artificial intelligence to enforce corporate governance mechanisms that ensure the healthy and ethical functioning of a corporation, although there is a need for stronger legal and statutory framework. This paper will try to analyse the ways in which AI is being used for Corporate Governance and the pivotal roles played by regulatory bodies such as the Ministry of Corporate Affairs and more importantly, the Securities and Exchange Board of India. This paper will also try to provide certain suggestions on how AI can be incorporated to make Corporate Governance regimes more efficient.