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According to ca 1993 s138, allows director to rely on information and advice from employees, professional advisers, experts, and other directors or committees. However, the
According to ca 1993 s138, allows director to rely on information and advice from employees, professional advisers, experts, and other directors or committees. However, the director must have reasonable grounds to believe that these sources are reliable and competent. This means that if a director chooses to use AI to assist in decision-making, they must have reasonable grounds to believe that the AI is reliable and competent in relation to the matters concerned. However, even if a director uses AI, they still have a duty to exercise independent(autonomous) judgment. This means they cannot simply accept the AI's recommendations without question. They must consider the AI's output, along with any other relevant information, and make their own decision. However, it mandates that the company's affairs must be managed by the board . This implies that while AI can assist in decision-making, it cannot replace the directors active management and decision-making responsibilities. S128i
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