Legal Governance of Artificial Intelligence in Sustainable Digital Business Ecosystems

Herman Herman; Nuke Puji Lestari Santoso; Ardivan Avandi; Nanda Septiani; Omar Sy

doi:10.34306/cvvv2165

Authors

Herman Herman HKBP Nommensen University of Pematangsiantar, Indonesia Author https://orcid.org/0000-0001-6818-5142
Nuke Puji Lestari Santoso Universitas Raharja, Indonesia Author https://orcid.org/0000-0002-4414-2102
Ardivan Avandi Universitas Raharja, Indonesia Author https://orcid.org/0009-0007-2360-0999
Nanda Septiani Universitas Raharja, Indonesia Author https://orcid.org/0009-0005-8150-6963
Omar Sy Mfinitee Incorporation, South Africa Author https://orcid.org/0009-0000-1446-2757

DOI:

https://doi.org/10.34306/cvvv2165

Keywords:

Artificial Intelligence, Legal Governance, Digital Business, Sustainability, AI Governance

Abstract

The rapid adoption of Artificial Intelligence (AI) within digital business ecosystems has reshaped decision-making, data processing, customer services, and business automation, while simultaneously introducing significant challenges concerning accountability, transparency, data protection, and legal responsibility. This study investigates AI legal governance in sustainable digital business ecosystems by examining how regulatory principles can balance technological innovation with legal certainty, human rights, accountability, and sustainability. A normative legal research approach is employed through statutory, conceptual, and comparative legal analysis. The legal materials include regulations addressing AI-related activities, personal data protection, electronic transactions, digital governance, and relevant international frameworks, supported by scholarly literature and policy documents. The findings indicate that fragmented and technology reactive regulatory approaches are inadequate for addressing the autonomous and continuously evolving characteristics of AI-driven business activities. Effective governance therefore requires an integrated framework incorporating transparency, explainability, human oversight, risk-based regulation, data protection, accountability, and stakeholder responsibility. The proposed framework places human-centered governance at the core of sustainable digital business development by clarifying the responsibilities of AI developers, providers, and business users while reinforcing institutional oversight. This study advances digital legal governance scholarship by connecting AI regulation with sustainable business transformation and responsible technological innovation. Adaptive and accountable legal governance is crucial to ensuring that AI-driven digital ecosystems generate economic value while protecting fundamental rights, public interests, and longterm social sustainability.

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Author Biographies

Herman Herman, HKBP Nommensen University of Pematangsiantar, Indonesia

Department of English Education
Nuke Puji Lestari Santoso, Universitas Raharja, Indonesia

Faculty of Economics and Business
Ardivan Avandi, Universitas Raharja, Indonesia

Faculty economics and business
Nanda Septiani, Universitas Raharja, Indonesia

Faculty economics and business
Omar Sy, Mfinitee Incorporation, South Africa

Department of Artificial Intelligence and Digital Governance

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