Algorithmic Governance and Corporate Accountability: A Legal Framework for Responsible AI Deployment in Business Enterprises

Abstract

The rapid integration of artificial intelligence into corporate decision-making processes has generated significant governance challenges that existing legal frameworks are ill equipped to address. As business enterprises increasingly rely upon algorithmic systems for strategic planning, risk assessment, and operational management, the question of corporate accountability for algorithmic outcomes has become a matter of pressing scholarly and practical concern. This article examines the evolving legal landscape governing artificial intelligence deployment within business contexts across the European Union, the United States, and selected Commonwealth jurisdictions. Drawing upon corporate governance theory, fiduciary duty doctrine, data protection law, and emerging artificial intelligence specific legislation, the article argues that current accountability structures are insufficient to address the unique risks posed by algorithmic decision making. It proposes a principles-based governance model grounded in algorithmic transparency, human oversight, continuous risk auditing, and board level artificial intelligence literacy to harmonise innovation imperatives with legal accountability. The analysis reveals that jurisdictions adopting proactive artificial intelligence governance mandates are creating competitive advantages for their corporate sectors, while lagging regimes risk regulatory arbitrage and litigation exposure. The article concludes with actionable recommendations for boards, compliance officers, and policymakers seeking to navigate the intersection of artificial intelligence innovation and corporate liability.