Ishan Law Journal

DECODING AI’s IMPACT ON CORPORATE GOVERNANCE AND COMPLIANCE

Ms. D. Akanksha Rao

Ishan Law Journal, Vol. 3, No. 8 (2025)

Keywords:

Artificial Intelligence (AI); Corporate Governance; Corporate Compliance; Risk Management; Data Privacy; Ethics.

Abstract

A strong “corporate governance” and compliance structure are quintessence of a company’s success. However, “Artificial Intelligence” (hereinafter referred to as “AI”) has recently been changing the terrane of “corporate compliance and governance.” AI has emerged as a doble-ended sword by enhancing risk detection and automation of reporting processes but also inviting newer risks and regulatory challenges. Despite a few benefits like enhancement of efficiency and accuracy, AI also introduces certain new challenges and risks. AI can make decision making processes opaque and could challenge transparency by making auditing a difficult task. Use of AI may also enhance the threat of amplifying existing bias leading to discriminatory results. Furthermore, use of AI poses a critical threat to data privacy especially when it comes to large corporations. In this paper the Author aims at providing a comprehensive exploration on impact of AI on corporate compliance and governance. The paper critically evaluates the implications of AI’s integration in a corporate set up and offers forward looking suggestions. The Author attempts to provide jurisdiction- specific insights into opportunities and bottlenecks of AI in “governance and compliance”.

Authors

Ms. D. Akanksha Rao

Masters of Law, Symbiosis Law School, Hyderabad

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Published
IssueVol.3 No. 08 (2025), ISHAN LAW JOURNAL
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How To Cite

Ms. D. Akanksha Rao (2025). Decoding AI’s Impact on Corporate Governance and Compliance. Ishan Law Journal, 3(08).

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