Abstract
Artificial Intelligence (AI) has become one of the most influential technological innovations shaping the modern corporate sector. Business organisations increasingly rely on AI-driven systems to improve operational efficiency, strengthen risk management, enhance regulatory compliance, and support strategic decision-making. While AI offers significant advantages, its growing role in corporate governance has also generated important legal and ethical concerns. Issues relating to accountability, transparency, algorithmic bias, cybersecurity, and data protection continue to challenge existing legal frameworks. India's corporate governance regime, governed primarily by the Companies Act, 2013, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Digital Personal Data Protection Act, 2023, provides general standards for corporate responsibility but does not specifically regulate AI-assisted governance. This article examines the emerging relationship between Artificial Intelligence and corporate governance in India, analyses the legal challenges arising from AI adoption, evaluates the adequacy of the present regulatory framework, and compares international approaches. It argues that India should adopt a comprehensive and risk-based regulatory framework capable of promoting innovation while ensuring accountability, transparency, ethical decision-making, and effective protection of stakeholder interests. Such a framework would strengthen corporate governance and contribute to responsible technological development in the country's rapidly expanding digital economy.
Keywords: Artificial Intelligence, Corporate Governance, Companies Act, Digital Personal Data Protection Act, Corporate Accountability, AI Regulation, Corporate Law, Data Privacy