Dr Ramesh Kumar Singh
Law
June 2025
This study examines the revolutionizing impact of Artificial Intelligence (AI) in business management from the perspective of Indian company law, focusing on altering roles and responsibilities of directors and corporate governance frameworks. While AI is seizing decision-making powers, risk analysis, and compliance, traditional legal principles applicable to directors' liabilities are put under new challenges when it comes to accountability, transparency, and supervision. By a mixed-method approach of doctrinal legal examination and empirical data from corporate leaders and lawyers, the study highlights key concerns such as liability of AI-driven decisions, algorithmic bias, privacy of data, and regulatory compliance. The findings show that existing Indian legislation, including the Companies Act, 2013, remains inadequate to address all AI-related risks, testifying to the urgent need for legal reforms and regulatory enhancements. By balancing innovation with current fiduciary duties, the study suggests more stringent guidelines on accounting for ethical AI adoption to safeguard corporate and stakeholder interests in India.
1157- 1169
© Airo Journals 2021
