Perspectives on the Current and Imagined Role of Artificial Intelligence and Technology in Corporate Governance Practice and Regulation

Australian Journal of Corporate Law, 2020

22 Pages Posted: 9 Mar 2020

See all articles by Natania Locke

Natania Locke

Swinburne Law School; University of Johannesburg

Helen Louise Bird

Swinburne Law School

Date Written: February 9, 2020

Abstract

This article investigates how AI and related technology augments corporate governance practices and the potential for further augmentation as AI continues to expand its capacity in corporate board rooms. Adopting Davenport and Ronanki’s framework for AI systems, the investigation shows that most of the current AI applications that aid governance falls in the process automation classification (board portals, risk and auditing systems, legal compliance), with some inroads having been made in cognitive insight (risk management, internal audit, legal compliance). Systems that exercise cognitive engagement are still immature but show real promise. The central conclusion is that technology may lend real benefit to governance practice. The consequential gaps in the current statutory formulation of the business judgment rule could be easily remedied by legislative amendment or even by means of expansive judicial interpretation. However, consistent nurturing of a culture of compliance and ethical behaviour remains a human endeavour.

Keywords: Corporate Governance, Artificial Intelligence, Technology, Disruption, Compliance, Risk Governance

Suggested Citation

Locke, Natania and Bird, Helen Louise, Perspectives on the Current and Imagined Role of Artificial Intelligence and Technology in Corporate Governance Practice and Regulation (February 9, 2020). Australian Journal of Corporate Law, 2020. Available at SSRN: https://ssrn.com/abstract=3534898

Natania Locke (Contact Author)

Swinburne Law School ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

University of Johannesburg ( email )

PO Box 524
Auckland Park
Johannesburg, Gauteng 2006
South Africa

Helen Louise Bird

Swinburne Law School ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

HOME PAGE: http://https://www.swinburne.edu.au/business-law/about-us/swinburne-law-school/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
120
Abstract Views
437
rank
249,502
PlumX Metrics