ARTIFICIAL INTELLIGENCE REGULATION AND ITS EFFECTS ON BUSINESS MANAGEMENT PRACTICES, ECONOMIC TRANSFORMATION, AND LEGAL ACCOUNTABILITY IN THE MODERN GLOBAL DIGITAL ECONOMY

Abstract

Artificial Intelligence (AI) has rapidly become a critical part of the economic, legal and corporate landscape, making the issue of its regulation a prominent governance challenge in today's global digital economy. Traditional management methods and economic structures have been greatly impacted by the rising use of AI-driven technologies in areas such as organisational decision-making, predictive analytics, automation, and digital service delivery. This transition has added many challenges for transparency, accountability, ethical adherence and legal liability. Protecting people, property, and the environment from harm while promoting equitable and ethical use of AI is the overarching goal of AI regulation. In the field of company management, artificial intelligence (AI) is used to enhance operational efficiency and optimise resources, and to make strategic decisions more effective and efficient, with a minimum of human involvement in vital procedures. From an economic standpoint, AI may contribute to productivity development, digital market expansion and innovation-driven transformation, and help to address concerns of job displacement and inequality.

However, from a legal perspective, there are challenges in establishing liability for AI systems, especially if the algorithm is biased or where decisions are taken without human involvement. The absence of a proper framework of accountability is a frequent concern and the models of government should be flexible and open. This research provides a literature review analysis of the regulation of artificial intelligence and its various impacts on digital ecosystem aspects of legal accountability, economic transformation, and company management practices. It emphasises the significance of well-rounded regulatory strategies that encourage creativity while guaranteeing honesty, conformity with the law, and long-term financial growth.