Written by a Staff Writer | Published on 22 June 2026
Company directors who delegate their fiduciary duties to an AI model or adopt its output as their own decision risk losing their Business Judgement Rule protection.
“The King V Code, the Companies Act and common law all dictate that corporate decisions must be made by humans based on reasonably trusted information or advice,” says Elani Vogel, Senior Forensics Manager at Loxton Forensics.
However, directors are often under pressure to make rapid decisions on complex business problems, and the speed of AI promises to accelerate decision-making significantly.
How can they safely use AI in a way that limits their personal liability while satisfying their legal, professional and ethical obligations?
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