Open Access Research Article

AUTONOMOUS AI HARM AND CORPORATE LIABILITY: A DUE DILIGENCE DEFENCE IN INDIA AND THE EU

Author(s):
V. POOJA DHARSHINI DR. RAJIV BHALLA
Journal IJLRA
ISSN 2582-6433
Access Open Access
Volume 3
Issue 8
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Abstract

Corporate use of autonomous artificial intelligence raises a difficult question: should a company remain liable when a third-party system causes harm despite precautions that were reasonable before the event? This paper examines that question in relation to procurement, contracting, pricing, financial decisions and internal resource allocation. It uses doctrinal and functional comparative analysis of Indian law and the European Union framework, with the legal position assessed on 13 November 2026. The analysis rejects the assumption that autonomy creates either automatic corporate liability or an automatic accountability gap. Negligence already distinguishes unreasonable conduct from unavoidable loss, while contractual obligations, product liability, data protection and regulatory sanctions serve different purposes. A general due diligence defence would obscure these differences and could transfer losses to persons unable to examine the system. The paper instead supports immediate reform of disclosure, record preservation and allocation of evidentiary burdens. It considers a further defence defensible only within a prospective, specifically defined residual compensation regime, where the deployer proves effective safeguards and the claimant retains an enforceable claim against an insurer or funded compensation arrangement. Existing contractual, consumer, employment, data-protection and other mandatory remedies would remain intact. Provider liability would require separate determination. The proposed protection concerns a defined additional liability, excludes negligent deployment and concealment, and fails wherever payment would otherwise become unavailable. Its introduction should depend on demonstrated need, insurance capacity and independent evaluation rather than an assumed entitlement to immunity.   Keywords: Autonomous artificial intelligence; corporate deployers; due diligence; civil liability; compensation; India and European Union.

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Authors: V. POOJA DHARSHINI & DR. RAJIV BHALLARegistration ID: 1013651 | Published Paper ID: IJLRA13651 & IJLRA13652 Approved ISSN: 2582-6433 | Country: Delhi, India

Article Information

AUTONOMOUS AI HARM AND CORPORATE LIABILITY: A DUE DILIGENCE DEFENCE IN INDIA AND THE EU

Authors: V. POOJA DHARSHINI, DR. RAJIV BHALLA

  • 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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