Technological advancements in today’s world are an ever-changing tale. It is still far-fetched for AI to overtake human directors reasonably soon, but its use in corporate activities is expected to grow. Running in parallel, corporate boards must be capable of dealing with the complicated legal and ethical challenges of using AI in company management and operations.
This paper delves into utilizing Artificial Intelligence (AI) in corporate governance and its worldwide acceptance and integration. With the advancement of AI technology, corporations are presented with both opportunities and challenges in corporate governance. The author observes that AI invites a radical change in Corporate governance by reforming it into a non-human board which suggests a fundamental alteration of the corporate structure. However, on the other hand, it also raises concerns relating to a lack of accountability and human conscience.
AI can enhance decision-making and risk management, making it a desirable solution for companies seeking to improve their governance practices. However, implementing AI in corporate governance raises significant ethical, legal, and practical issues that must be addressed. The paper attempts to strike a balance between the benefits of technological progress and addressing social and legal concerns while incorporating AI into their governance practices. Further, this paper explores the facets of adopting AI in corporate governance, comparing it with prominent global theories. The author posits that the effectiveness of AI in corporate governance lies in its alignment with existing governance frameworks, ethical and legal considerations, and stakeholder expectations.
Eventually, this paper concludes that to make AI successful in corporate governance, regulators, companies, and stakeholders should work together to oversee its global acceptance and local integration.
