AI Corporate Governance and Legal Accountability

This chapter examines the intersection of Artificial Intelligence, corporate governance, and legal accountability through a comparative analysis of Indian and international regulatory frameworks. It evaluates how AI's integration into corporate decision-making—across finance, hiring, compliance, and supply chains—raises challenges of opacity, bias, and liability diffusion. Internationally, frameworks such as the EU AI Act (2024), OECD AI Principles, and U.S. sectoral regulations impose varying degrees of oversight, transparency, and risk classification, while India's evolving regime, shaped by the Digital Personal Data Protection Act, 2023, the IT Act, 2000, and the Companies Act, 2013, remains fragmented. Using case studies from India, the EU, and the U.S., the chapter identifies governance gaps and proposes a hybrid model combining statutory reform, mandated algorithmic transparency, board-level AI Ethics Committees, enhanced disclosures, and regulatory sandboxes. It argues for anticipatory and ethically grounded corporate governance that balances innovation with legal safeguards.