The Intersection of Corporate Governance and Artificial Intelligence

Abstract

Corporate governance has become a critical issue in the corporate sector. Effective management is crucial to ensure that the interests of all stakeholders in corporations are protected. On the other hand, artificial intelligence is advancing rapidly and is increasingly used to facilitate human decision-making. AI refers to various statistics, machine learning, and data mining-based decision-making systems that use big data and the necessary technological and algorithmic know-how. The multidisciplinary interest in AI is due to its potential to help rapidly arrive at decision-making and take in much more data than humans can, recognising patterns in data or predicting the future based on the data and relative statistical models. AI is used in various aspects of human social and shared activity, including recruitment, financial trading, hiring decisions, loan applications, customer relations, educational techniques, and sports.

Given the importance of critical corporate decision-making, it is possible to think about the governance of corporate AI use. There could be positive outcomes of AI use in governance, such as financial governance and governance of critical corporate decisions, as we will consider further below. However, given the potential benefits and risks associated with AI, it is essential to identify and address any risks to corporate governance. This essay concerns the complex multidimensional aspects of the relationship between corporate governance and AI.