AI In Corporations: Legal And Environmental Risks And Their Impact On Leadership, Governance, And Sustainability In Australia

Abstract

Artificial Intelligence (AI) is rapidly transforming corporate governance and strategic decision-making in Australia. While AI enhances operational efficiency and data-driven innovation, its deployment raises critical legal, ethical, and environmental governance concerns. This paper examines the intersection of corporate AI use with Australia's regulatory landscape, focusing on legal risks such as data privacy breaches, algorithmic discrimination, surveillance, and cybersecurity vulnerabilities. It argues that responsible AI governance is essential not only for legal compliance but also for sustainable and ethical business conduct. By synthesizing statutory duties, case law, and international frameworks, this paper provides a governance roadmap for corporate leaders seeking to deploy AI responsibly within environmental, social, and legal boundaries. The findings have broader implications for environmental and technological stewardship, digital ethics, and corporate accountability. In addition, the paper examines how AI can both support and undermine environmental, social, and governance (ESG) obligations, urging corporations to adopt sustainability-aware governance practices.