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Published Paper Details:
THE RISE OF ARTIFICIAL INTELLIGENCE IN CORPORATE ACCOUNTABILITY: LEGAL IMPLICATIONS FOR CORPORATE GOVERNANCE IN INDIA
Authors
Bharath Prakash,Jyotirmoy Banerjee
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Keywords
Artificial Intelligence, Corporate Governance, Legal Accountability, Indian Companies Act, Algorithmic Regulation
Abstract
The integration of Artificial Intelligence (AI) into corporate operations is rapidly transforming the landscape of corporate governance and accountability in India. As companies increasingly adopt AI-driven tools for decision-making, compliance, risk management, and internal audits, significant legal and ethical implications emerge. This paper explores how AI challenges traditional models of corporate governance and necessitates a rethinking of regulatory frameworks to ensure accountability, transparency, and fairness. In India, the Companies Act, 2013 and the evolving jurisprudence around corporate responsibility do not yet fully address the complexities introduced by autonomous and semi-autonomous AI systems. Key concerns include the delegation of decision-making to AI without clear accountability, biases in algorithmic processes, data privacy issues, and the risk of regulatory arbitrage. Furthermore, questions arise regarding liability attribution when AI errors lead to financial misreporting, discrimination, or regulatory non-compliance. This paper argues that while AI can enhance governance efficiency, it also complicates the assignment of responsibility, thereby demanding a more robust legal framework. It calls for the introduction of AI governance norms tailored to the Indian corporate context, including mandatory algorithmic audits, board-level tech literacy, and legal recognition of AI-assisted decision-making protocols. Additionally, the role of regulators such as SEBI and the Ministry of Corporate Affairs must evolve to address AI-specific challenges. Through case studies and comparative analysis with global practices, the paper highlights both the opportunities and regulatory gaps in India's current corporate governance regime. Ultimately, it seeks to propose a balanced approach that enables innovation while safeguarding accountability and public trust.
IJCRT's Publication Details
Unique Identification Number - IJCRT2506028
Paper ID - 288286
Author type - Indian Author
Page Number(s) - a250-a259
Pubished in - Volume 13 | Issue 6 | June 2025
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No Of Downloads - 172
Author Country - India, -, -, -, -, Science and Technology
Publisher Name - IJPUBLICATION | www.ijcrt.org | ISSN : 2320-2882
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Bharath Prakash,Jyotirmoy Banerjee, "THE RISE OF ARTIFICIAL INTELLIGENCE IN CORPORATE ACCOUNTABILITY: LEGAL IMPLICATIONS FOR CORPORATE GOVERNANCE IN INDIA", International Journal of Creative Research Thoughts (IJCRT), ISSN:2320-2882, Volume.13, Issue 6, pp.a250-a259, June 2025, Available at :http://www.ijcrt.org/papers/IJCRT2506028.pdf
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