Open Access Research Article

AI-ASSISTED BOARD DECISION-MAKING AND DIRECTORS' DUTIES: EXAMINING ACCOUNTABILITY UNDER INDIAN CORPORATE LAW

Author(s):
AKSHAT DADHICH ABDUL AHIDUR RAHAMAN
Journal IJLRA
ISSN 2582-6433
Access Open Access
Volume 3
Issue 8
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Abstract

Companies have begun to use intelligence tools to help with strategy, risk assessment, financial analysis and compliance. This article examines whether section 166 of the Companies Act 2013 provides coverage for directors’ duties when board decisions depend on artificial intelligence tools. It asks if additional safeguards are needed to ensure accountability in cases. The article draws on research and compares selected aspects of the EU AI Act and Delaware corporate law. It reviews the Companies Act, the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015 the India AI Governance Guidelines of November 2025 relevant court decisions and academic studies. The article finds that section 166 is flexible in principle. The duties of care, diligence and independent judgment still apply regardless of the directors’ use of tools. When intelligence helps in decision-making the responsibility remains with the directors. However, the section says little about what it means to rely on probabilistic systems. Also, the Act does not offer a safe harbour, for directors who use experts. To address these gaps the article proposes a risk-based governance plan. This includes board policy, a tiered classification system, verification steps, documentation, training and regular review. It recommends that most of these measures can be implemented through existing duties, board practices and regulatory guidance. Only a narrow legislative change is needed. To clarify good-faith reliance. If evidence shows that such a change is necessary. The article takes an approach. It links directors’ duties to the risks posed by intelligence systems without treating intelligence as a legal director. It also avoids assuming that policy guidance creates statutory duties. The focus remains on accountability and responsibility not on redefining roles.

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Authors: AKSHAT DADHICH & ABDUL AHIDUR RAHAMANRegistration ID: 1013597 | Published Paper ID: IJLRA13597 & IJLRA13598Approved ISSN: 2582-6433 | Country: Delhi, India

Article Information

AI-ASSISTED BOARD DECISION-MAKING AND DIRECTORS' DUTIES: EXAMINING ACCOUNTABILITY UNDER INDIAN CORPORATE LAW

Authors: AKSHAT DADHICH, ABDUL AHIDUR RAHAMAN

  • Journal IJLRA
  • ISSN 2582-6433
  • Volume 3
  • Issue 8
Citation Download Paper Full Details Search on Google Search on Google Scholar

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International Journal for Legal Research and Analysis

  • AbbreviationIJLRA
  • ISSN2582-6433
  • AccessOpen Access
  • LicenseCC 4.0

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