LEGAL AND ETHICAL CHALLENGES FOR COMPETITIVE ORGANIZATIONS

Abstract

Today, AI is extensively used in management decisions, having significant impacts on organizational efficiencies, governance structures, and competitive performances. This research attempts to explore the legal and ethical issues related to the application of AI and assess the role of responsible artificial intelligence as a tool for competition within organizations. The study seeks to ascertain the ways in which responsible AI helps mitigate legal risks and improve the ethical performance of organizations to make them more competitive. Using a quantitative methodology, data collected from 150 organizations implementing Artificial Intelligence (AI) systems were analyzed statistically to examine the relationship between Responsible Artificial Intelligence (RAI) governance practices and organizational competitiveness. The findings reveal that responsible AI enables organizations to gain more stakeholder trust and reduce the risk of regulations while achieving better strategic performances. It can be argued that responsible AI is not just about meeting compliance requirements, but rather an important tool for competitive organizations.