Abstract

The fast-paced evolution of Artificial Intelligence (AI) has had a profound impact on decision-making in various sectors, especially corporate banking and insurance. This paper discusses the evolution of AI both historically and theoretically and assesses its legal and ethical consequences in relation to these sectors. The paper will look at the evolution of AI starting with early rule-based AI in the 1950s and 1970s, moving through machine learning in the latter half of the twentieth century, and concluding with modern forms of AI including deep learning and autonomous systems, which require less human involvement. This study will discuss how the increasing autonomy and sophistication of AI have resulted in the evolution of AI from simple technology to actual players in decision-making processes. AI provides numerous benefits for corporations, including increased efficiency, accuracy, and risk mitigation however, they pose many legal challenges due to issues of accountability, transparency, and liability. The analysis concludes that existing legal frameworks are insufficient to fully regulate the complexities of AI-driven decision-making. It emphasizes the need for evolving legal doctrines and regulatory approaches, such as stricter liability regimes or new accountability models, to ensure responsible deployment of AI technologies. Understanding the historical evolution and ethical dimensions of AI is therefore essential for developing legal frameworks capable of addressing the challenges posed by intelligent and autonomous systems in the modern financial landscape.

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