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AI on Corporate Boards: Liability Traps under the 2025 AI Bill, Companies Act, and CCI Scrutiny
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AI on Corporate Boards: Liability Traps under the 2025 AI Bill, Companies Act, and CCI Scrutiny

Indian companies are implementing AI to do analytics and compliance and MCA21 V3 reflects adoption of governance. Nevertheless, AI Bill 2025, the Companies Act responsibilities, the risk of collusion by CCI, duties under the DPDP, and labour or tax legislation led to liability exposure. Risk based controls, human over-rides and third-party audits should be employed by boards. Directors can have their fines, fraud claims, and vicarious liability minimized via safe-harbour reforms.

Vidhi Sharma & Shresth Kukreja

April 22, 2026