Artificial Intelligence (Ai) in Corporate Governance: Board Accountability and Directors’ Duties in India and Abroad

Abstract

Artificial intelligence increasingly shapes information and recommendations reaching corporate boards. It can strengthen forecasting, detect irregularities, and improve organizational responsiveness, but it can also conceal unreliable assumptions, reproduce discrimination, and weaken meaningful human scrutiny. This article examines how directors’ duties apply when companies adopt AI, with particular attention to India and comparative developments in the United Kingdom, United States, and European Union. Using doctrinal and comparative analysis, it argues that AI changes the practical demands of oversight without eliminating human responsibility. Existing duties provide an important foundation, although their application requires attention to organizational context, foreseeable risks, and the director’s role. The article proposes proportionate governance arrangements covering system approval, vendor scrutiny, monitoring, incident escalation, and correction. Its central conclusion is that responsible adoption depends on directors’ ability to question evidence and act on warning signs, rather than treating automated recommendations as substitutes for judgment.