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ARTICLE · 19 FEBRUARY 2026

Enterprise AI Oversight: Strategic Controls For In-House And Shadow AI Deployments

AK & Partners
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The use of AI within enterprises for productivity-related functions, including legal drafting, automated negotiation processes, and large-scale data analysis, is presently regulated in India through existing statutory frameworks rather than through any AI-specific legislation.

IndiaTechnology
Kritika Krishnamurthy
Kritika Krishnamurthy
  1. AI in Enterprise Contracts: Legal Framework

The use of AI within enterprises for productivity-related functions, including legal drafting, automated negotiation processes, and large-scale data analysis, is presently regulated in India through existing statutory frameworks rather than through any AI-specific legislation. Indian law does not yet recognise a distinct legal regime governing AI-enabled contracts or the general deployment of AI in commercial operations. Nonetheless, the prevailing legal framework, principally the Indian Contract Act, 1872 and the Information Technology Act, 2000, is generally considered adequate to govern such activity.

  1. Principle of Attribution: A central principle governing enterprise AI deployment under Indian law is attribution. AI systems are not recognised as legal persons and do not possess independent juridical status. They are therefore incapable of assuming contractual rights or obligations in their own name. The Indian

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