AI AT THE INTERSECTION OF MANAGEMENT AND LAW: OPPORTUNITIES AND ETHICAL CHALLENGES

Abstract

The introduction of AI in management and law, is a complex phenomenon, as it may offer opportunities and be accompanied by ethical issues. While introducing a new opportunity for decision-making and enhancing operational efficiency, the use of AI at the same time opens issues about legal and ethical requirements of decision-making along with the issues of trust from stakeholders. Knowledge of these trends is important when it comes to reaping most advantages and avoiding most of the disadvantages. Objectives The proposals of this research are as follows: This research investigates the correlation between AI application and management, rules and ethics of AI, stakeholder trust, and organizational performance. The purpose is to determine moderating variables within an organizational environment that could affect the applicability of AI systems as well as their ethical use. Methods Consequently, a survey cross-sectional quantitative study involving 355 participants from diverse industries was carried out. Questionnaire data were captured using Likert scale items to capture variable constructs such as the use of AI, perceived regulatory environment, ethical implementation of AI, and organizational performance. Quantitative analysis used two comparative methods namely; normality tests and Cronbach alpha while the Pattern of association of the variables employed regression analysis. Results The research evidence shows that AI has been embraced well with the respondents also having positive attitudes toward the technology on its applicability to management. Nonetheless, the results of the regression analysis provided a low R-squared value of the model which is equal to 3.4 %, and assuming that AI adoption, regulatory frameworks, and ethical practices determine organizational performance, then it can be assumed that the model explains a small variation within the overall organizational performance. Trust, which was not significantly correlated with any of the variables but non-organizational stakeholders, pointed to a positive albeit insignificant association with organizational outcomes. Cronbach’s Alpha value validated that the survey was reliable and the the normality test observed a moderate skewness. Conclusions It highlights that the integration of AI into management and law is not an easy task. The behavior of ethical practices and their stakeholder trust are identified Y as two parameters that played a major role in the integration of AI. To an extent, legal and regulatory systems are seen as constraining by some while admitting that they are necessary, a study of policy balance is required. It is necessary to carry out more studies integrating other factors affecting the use of AI to discover methods to correlate the measures facilitating the innovation processes with ethical and legal concerns.