ARTIFICIAL INTELLIGENCE AT THE CROSSROADS OF LAW AND MANAGEMENT: BUILDING RESPONSIBLE COMPETITIVE ADVANTAGE

Abstract

Artificial intelligence is reshaping managerial decision-making, organizational design, and market competition, while also raising pressing questions of accountability, transparency, data protection, and regulatory compliance. This paper examines how organizations can adopt AI responsibly and transform legal and ethical requirements into a source of sustainable competitive advantage. Using a qualitative research design that combines a systematic literature review with a criteria-based comparative analysis of selected regulatory frameworks and organizational governance practices, the study identifies mechanisms that support trustworthy and legally robust AI implementation. The analysis shows that effective AI governance depends on aligning strategic objectives with ethical principles, compliance obligations, data stewardship, and clearly defined managerial responsibilities. Rather than limiting innovation, such alignment can strengthen organizational legitimacy, reduce risk exposure, improve stakeholder trust, and enhance long-term competitiveness. The paper contributes to the interdisciplinary debate on AI-driven transformation by integrating legal, ethical, and management perspectives into a practical governance model for managers, policymakers, and scholars concerned with responsible AI adoption.