Firms may be mandated to report AI, digital risks

As part of the government’s push to strengthen oversight of artificial intelligence (AI) across Corporate India, company boards might soon have to formally disclose their exposure to AI and digital risks under new reporting obligations.

According to an official familiar with the discussions, the ministry of corporate affairs (MCA) might expand the disclosure requirements under the Companies Act to ensure that boards take bigger responsibility for AI-related risks such as data privacy, algorithmic bias, IP infringement, operational disruptions and cybersecurity vulnerabilities.