AI GOVERNANCE AND CORPORATE LAW: LEGAL CHALLENGES FOR INDIAN BUSINESSES

Artificial Intelligence (AI) is becoming an important part of how businesses in India operate and make decisions. However, its growing use also creates legal challenges related to data privacy, algorithmic bias, intellectual property, cybersecurity, and responsibility for AI-driven decisions. This blog examines these challenges under the existing Indian legal framework, including the DPDP Act, 2023, the Companies Act, 2013, and the Information Technology Act, 2000. It also briefly compares India’s approach with the EU AI Act and suggests practical measures such as human oversight, impact assessments, audit trails, and bias testing. The blog highlights the need for responsible AI governance to ensure that businesses can use AI while maintaining transparency, accountability, and trust.