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@article{191757,
        author = {ADUTIYA JHA},
        title = {Beyond Fiduciary Duty : The Artificial Intelligence Rule and the Corporate Governance},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {8},
        pages = {8226-8231},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=191757},
        abstract = {The rapid integration of artificial intelligence (AI) in to corporate decision making has initiated a profound shift in governance presenting a new legal and ethical frontier for board of directors. While Artificial Intelligence offers its transformative benefits like from predictive concerning the “black box” problem and inherent algorithmic bias . This paper addresses a critical governance gap which disconnects India's existing corporate law which presume a human centric decision making process and the reality of a technology augmented boardroom. 
The central part argues that the traditional Business Judgement Rule (BJR) which insulates directors from liability for good faith errors is insufficient in that world which is driven by Artificial Intelligence (AI) . It proposes a new legal standard, the “AI Judgement Rule” which expands the director's duty of care and diligence under the Companies Act 2013 . This rule would mandate a proactive five point framework for board oversight : 
(1)	A duty to understand the AI's model’s underlying aim and assumption 
(2)	A requirement for “human in loop” oversight on critical decisions 
(3)	A demand for transparent and auditable rationales from AI systems 
(4)	The establishment of a robust board approved AI governance framework 
(5)	Continuous direct education on emerging risks within the AI
Drawing on the analysis of global precedents, including US AI bias litigation and regulatory initiatives by SEBI this paper outlines a clear pathway for judicial interpretation and legislation and legislative intervention in India. It moves beyond a descriptive account of the problem to offer a comprehensive actionable blueprint for boards and regulators to bridge the gap between technological advancements with legal accountability. By advising a new measurable standard of due diligence this paper provides a timely and original contribution to the discourse on responsibilities for corporate governance in this digital era.},
        keywords = {},
        month = {January},
        }