CAN ARTIFICIAL INTELLIGENCE BE APPOINTED AS A COMPANY DIRECTOR? A CORPORATE GOVERNANCE DILEMMA

The use of Artificial Intelligence in companies is being discussed a lot. Many people are wondering if AI can help make decisions in the boardroom. AI can look at lots of information find patterns predict risks and help directors plan strategies. This raises a question: can AI be a company director? This paper looks at the issue under law specifically the Companies Act of 2013. It checks the rules about appointing directors their duties, liabilities and disqualifications. These rules are based on the idea that directors’ human beings who can be held accountable. The paper also looks at what's happening internationally with AI in governance. It finds that while AI can make companies more efficient and help with decision-making there are problems with making AI a legal director. AI is not a person and cannot be held accountable in the same way as humans. The paper concludes that AI should be used as a tool to help with governance not as a director. It suggests that rules should be made to balance the use of AI with accountability. Artificial Intelligence can help companies. It should not replace human directors. The Companies Act 2013 has rules for directors. These rules do not apply to AI. AI systems cannot take responsibility for their actions like humans do. Therefore, AI cannot be appointed as a company director under the framework. Artificial Intelligence will continue to play a role in companies but it will be as a support tool not as a director. The goal is to use AI to make companies better but to make sure that humans are still in charge. Companies can use AI to make decisions. Humans must be accountable for those decisions. The use of Artificial Intelligence in governance is. Companies must find a way to balance the benefits of AI with the need, for human accountability.