Oct. 19, 2026
AI puts corporate boards on notice
Attorneys are debating whether Delaware's 1996 Caremark oversight standard could expose corporate directors to liability for failing to monitor AI risks, though experts say its high bad-faith bar remains tough for shareholders to clear.
Securities attorneys are debating whether a 30-year-old Delaware court ruling could expose corporate directors to liability for failing to oversee artificial intelligence -- and how boards should respond to risks that can change faster than traditional oversight systems.
No directors have yet been sued for failing to oversee AI risks, but attorneys anticipate such lawsuits as companies increasingly rely on the technology. The issue has prompted a series of law firm client alerts a...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$895, but save $100 when you subscribe today… Just $795 for the first year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In