Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{206566,
        author = {Praveen B and Dharigasri.V and Abishek K.S},
        title = {REGULATING ARTIFICIAL INTELLIGENCE IN CORPORATE DECISION MAKING : A BUSINESS LAW PERSPECTIVE},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {2},
        pages = {2348-2358},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=206566},
        abstract = {Artificial Intelligence (AI) has now become a crucial part of corporate governance and business decision-making, adding efficiency, accuracy, and strategic direction to the process by leveraging data-driven insights. It has been a game-changer for businesses when it comes to financial forecasting, risk management, HRM, regulatory compliance, and board-level decision-making. With the rising use of AI, however, comes a host of legal questions such as accountability, transparency, algorithmic bias, directors' fiduciary duties and corporate liability. Current Indian legislation, such as the Companies Act, 2013; Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations; and the Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023, only indirectly regulates the use of AI in corporate decision-making and does not include specific provisions on the subject. This study will critically analyze the suitability of the current legal framework of India to monitor the business law in relation to the use of AI in corporate governance and decision-making. The research is based on a doctrinal and comparative approach, which involves analyzing statutory provisions, judicial principles, regulatory guidelines and international instruments, such as the European Union AI Act, the OECD AI Principles and regulatory frameworks adopted in the United Kingdom and the United States. The study pinpoints key legal gaps with regard to algorithmic accountability, explainability, governance frameworks, liability distribution and regulatory oversight over corporate decision-making. The results show that there are currently legal challenges that corporate laws are unable to respond to, stemming from AI-enabled governance. The study suggests the establishment of a dedicated AI regulatory framework and calls for the implementation of mandates for human oversight, AI governance policies, algorithmic transparency, independent audits, and increased director accountability. It finds that while promoting responsible use of artificial intelligence, it is critical to ensure that companies have an accountability framework in place that protects stakeholders and public trust. The study is a further step in the ongoing debate regarding AI governance, offering recommendations for legal change that will harmonize technological advancements with the tenets of corporate governance and corporate law.},
        keywords = {artificial intelligence, corporate governance, business law, corporate decision-making, Companies Act, directors' duties, AI governance, corporate liability, algorithmic accountability, and regulatory framework.},
        month = {July},
        }