This research paper critically examines the regulatory gap in India concerning AI, accountability, and corporate decision-making. By analyzing the adequacy of current legal frameworks—including the Companies Act of 2013, the Information Technology Act of 2000, and SEBI guidelines—alongside comparative insights from the European Union’s AI Act and U.S. corporate law, the paper seeks to illuminate the deficiencies in India’s present approach and propose pathways for reform. Employing a doctrinal methodology, the analysis draws from statutory instruments, judicial decisions, and academic literature, with particular attention to the intersection of legal liability, algorithmic bias, data protection, and corporate governance. The central thesis is that India’s legal infrastructure has yet to effectively address the accountability vacuum created by AI-driven decision-making in the corporate sphere. Consequently, legislative innovation, institutional reforms, and robust ethical oversight are urgently needed to bridge the regulatory gap while ensuring both innovation and accountability.

Introduction On 25th February 2021, the Government of India issued…