India’s Insolvency Framework Faces New Questions From AI Transactions

India’s insolvency rules may need to change as businesses increasingly use AI agents.

An AI agent can make decisions and complete transactions for a company.

Sometimes, a transaction could look normal when an AI performs it.

The same transaction might look suspicious if a human had done it.

The situation becomes more complicated when two AI agents conduct business with each other.

At first, that deal might appear to be an ordinary business transaction.

But AI systems can potentially be trained unfairly or manipulated.

This creates difficult questions about whether the transaction should be allowed or investigated under insolvency law.