FROM COMPLIANCE TO ALGORITHMIC GOVERNANCE: THE FUTURE OF AI-DRIVEN CORPORATE REGULATION UNDER INDIAN COMPANY LAW
Amritanshu Upadhyay, BBA LL.B (Hons), 6th Semester, Student at Amity Law School, Amity University Uttar Pradesh, Lucknow (India)
The rapidly advancing integration of artificial intelligence into corporate decision-making processes offers both transformative opportunities and fundamental regulatory challenges to the existing company law framework in India. While existing literature has largely focused on questions of legal personhood and its implications on corporate liability, a far more critical and pertinent concern has received limited attention: how existing architecture for corporate compliance under the Companies Act, 2013, can be reconceptualized to accommodate, regulate, and hold accountable AI-driven systems of corporate governance that already exist across Indian corporations. This paper contends that India is currently at a critical juncture in its corporate law regulation, wherein a passive model of corporate compliance grounded on human agency and reactive enforcement is gradually being supplanted by an emerging model of algorithmic governance, wherein AI systems conduct audits, monitor transactions, and undertake risk assessments autonomously. In this regard, this research, drawing on the doctrinal research on the Companies Act, 2013, SEBI regulations, and the national AI policy space, and informed by a comparative analysis of the EU, UK, and Singaporean regimes, seeks to develop a normative framework on AI-driven corporate regulation in India, and in this regard, argues that accountability in algorithmic governance must be rethought in terms of three key pillars: the mandatory explainability of AI systems in governance roles, a recrafted duty of care for directors in AI-driven decision-making, and the AI audit mechanism in corporate compliance law.
| 📄 Type | 🔍 Information |
|---|---|
| Research Paper | LawFoyer International Journal of Doctrinal Legal Research (LIJDLR), Volume 4, Issue 1, Page 1629–1650. |
| 🔗 Creative Commons | © Copyright |
| This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License . | © Authors, 2026. All rights reserved. |