The Role of AI in Strengthening Legal Compliance and Corporate Governance in Pakistan
Hafiz Omer Abdullah, Tabinda Mehdi, Syed Wahaj Ali · Research Journal for Social Affairs · 2025
The fields of artificial intelligence are changing quickly, so you need to get new tools that will help you be open, audit-able, and follow the new rules. This paper aims to illustrate that the intricate and incremental global advancement of AI can provide an innovative solution to the legal compliance and corporate governance issues in Pakistan, which are frequently regarded as characterized by ambiguous governance structures, ineffective implementation, regulatory inaction, and pervasive inefficacy. A quantitative cross-sectional survey research design was employed to gather data from 400 participants, comprising corporate practitioners, regulators, legal experts, and academics. The level of AI adoption, legal compliance, and corporate governance were measured using the 5-point Likert scale through structured questionnaire. Reliability analysis revealed good internal consistency (Cranach’s α >. 80). Results show that practitioners maintain high levels of optimism towards AI’s adoption (M = 4.11), legal compliance (M = 4.07), and corporate governance (M = 4.15). The ANOVA results indicated significant differences among groups, with regulators and corporate professionals exhibiting the highest mean scores for AI potential, followed by researchers. This illustrates a division between practical optimism and theoretical caution. The impact of AI adoption on the intention to share additional information on social media was substantiated by regression analysis (β = .34, p < .001) and compliance (β = .29, p < .001), which emerged as significant predictors of governance outcomes, accounting for 46% of the variance. These results suggest that AI applications such as automated compliance monitoring, predictive analytics, and fraud detection could enhance board accountability, financial transparency, and investor confidence in Pakistan's corporate sector. The study indicates that AI possesses considerable potential to transform Pakistan's governance dynamics by facilitating efficient governance and aligning corporate conduct with global standards. However, for integration to work, there must also be the right legal frameworks, ethical safeguards, and institutional abilities in place. Longitudinal and mixed-method designs should be employed in the future to assess the long-term trajectory of AI across various sectors and environments.