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AI-Driven Decision-Making: Ethical Challenges and Opportunities for Corporate Governance

Chief Editors:  Mr. Irshadullah Asim Mohammed, Dr. Yogesh Mohan Gosavi, and Prof. (Dr.) Vineeta Kaur Saluja

Associate Editor: Mrs. Sruthi S

Co-Editors: Dr. S. Rajeswari, Dr. Nikhil Saini, and Ms. Atreyee Banerjee

ISBN:  978-81-985805-1-1

Chapter: 29

DOI: https://doi.org/10.59646/mrnc29/321

Author: Dr. Nidal Al Said

Abstract

Artificial Intelligence (AI) has become an integral tool in corporate decision-making, offering enhanced efficiency, predictive accuracy, and strategic insights. AI-driven decision-making processes leverage vast amounts of data to optimize business operations, mitigate risks, and improve stakeholder outcomes. However, as AI systems increasingly influence governance structures, ethical concerns arise regarding transparency, accountability, bias, and the potential for unintended consequences. Corporate leaders must navigate the complexities of ensuring responsible AI deployment while balancing innovation and ethical considerations. This paper explores the ethical challenges posed by AI-driven decision-making, such as algorithmic bias, data privacy concerns, and the erosion of human oversight in governance. It also highlights the opportunities AI presents for fostering ethical corporate practices, enhancing compliance mechanisms, and enabling more data-driven, inclusive, and responsible governance. Ultimately, this study emphasizes the need for organizations to adopt ethical AI frameworks, regulatory compliance measures, and stakeholder engagement strategies to ensure AI-driven decision-making aligns with corporate social responsibility (CSR) and sustainable governance principles.

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