Measuring Organisational Digital Dharma: Developing and Validating an Indian Knowledge Systems Framework for Responsible Artificial Intelligence Adoption

Abstract

Background: The accelerated adoption of Artificial Intelligence (AI) in organisational processes has introduced concerns about algorithmic bias, transparency, accountability, privacy and ethical governance. Most of the Responsible AI frameworks have their roots in Western ethical frameworks, and do not consider Indian Knowledge Systems (IKS) in their philosophical and normative aspects. Philosophies like Dharma, Lokasaṅgraha (collective welfare), Ahimsa (non-harm), Satya (truthfulness) and Nishkama Karma (selfless action) offer a comprehensive moral framework for responsible technological innovation and sustainable digital transformation. The objective of the study was to develop and validate the Organisational Digital Dharma (ODD) Framework – a multidimensional measurement scale, based on Indian Knowledge Systems to evaluate organisational readiness and ethical maturity for the adoption of Responsible AI.
Study Design: The study is conducted using a mixed-method research design, starting with qualitative concept elicitation methods, such as a comprehensive literature review of IKS literature, Responsible AI, and interviews with scholars, AI practitioners, and organisational leaders. Items are developed and refined through the Delphi technique and then pilot-tested. Survey data from organisations implementing AI technologies is used to empirically validate the measurement instrument. Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), Structural Equation Modelling (SEM), and reliability and validity tests are used to validate the psychological structure of the proposed model.
Findings: The study concludes that Organisational Digital Dharma can be seen as a combination of interconnected dimensions such as ethical leadership, algorithmic transparency, fairness and inclusivity, stakeholder welfare, accountability, environmental responsibility, human-centred innovation and continuous ethical learning. The validated framework is found to have high reliability scores, convergent validity, discriminant validity, and predictive ability in the cases of Responsible AI adoption and organisational ethical performance.
Theoretical Contribution: The research takes forward Responsible AI scholarship by linking Indian Knowledge Systems with organisational ethics and introducing Digital Dharma as a culturally informed and theoretically sound construct. It provides a non-Western approach to ethical technology governance, alongside other AI governance frameworks. Practical Implication: The Organisational Digital Dharma Framework offers a practical assessment tool for policymakers, industry leaders, ESG practitioners and technology managers to benchmark ethical AI maturity, reinforce governance structures, enable ESG reporting, and drive digital transformation initiatives towards responsible innovation and sustainable organisational development.
Originality: It is one of the first studies that proposes, operationalises and empirically validates a measurement framework for Responsible AI adoption in Indian Knowledge Systems. The study provides an innovative and culturally relevant model for ethical AI in the age of intelligent organisations by integrating Digital Dharma into organisational governance. The study introduces a culturally sensitive, innovative and global model for ethical AI implementation in the era of intelligent organisations by embedding Digital Dharma into the governance of organisations.