AI Governance and Ethical Accountability in Indian Corporates: A New Dimension of Corporate Governance

The growing use of Artificial Intelligence (AI) in corporate decision-making is reshaping the way businesses operate, offering immense opportunities while raising complex ethical and legal challenges. This paper examines how AI governance is emerging as a vital component of corporate governance and social responsibility in India. As corporations increasingly depend on algorithms to make decisions related to recruitment, finance, and customer interaction, concerns about fairness, transparency, and accountability have become central to responsible business conduct. The study evaluates the effectiveness of India’s existing legal frameworks, including the Companies Act, 2013, the Information Technology Act, 2000, and SEBI’s disclosure norms, in addressing these evolving issues. It also draws insights from international frameworks such as the OECD Principles on AI and the European Union’s AI Act to identify approaches that could strengthen Indian regulatory policies. The research argues that despite notable progress in technology regulation, India still lacks a comprehensive framework to ensure ethical AI practices within corporate governance. To fill this gap, the paper proposes a Responsible AI Governance Model that prioritizes human oversight, ethical accountability, and transparency in the use of AI- driven systems. Connecting technology, law, and ethics, the study emphasizes that responsible AI use should be recognized as a core aspect of modern corporate governance rather than a purely technical concern. The conclusion highlights that a well-defined AI governance structure can build stakeholder trust, promote sustainable innovation, and align corporate growth with broader principles of accountability and social responsibility.