Artificial intelligence to enhance corporate governance: A conceptual framework

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In this preliminary study, we explore the novel intersection of corporate governance (CG) and artificial intelligence (AI), addressing the crucial question: How can AI be leveraged to enhance ethical and transparent decision-making within the corporate environment? Drawing from current studies on organizational governance, AI ethics, and data science, our research raises the curtain on the potential of AI in augmenting traditional governance mechanisms, while also scrutinizing the ethical quandaries and challenges it may pose. We propose a novel conceptual framework, rooted in the principles of separation of ownership and control, and data ethics, to be underpinned and validated, in the future, through an empirical study. Given the current inception stage of the study, we expect the results will illustrate a significant positive impact of AI on CG effectiveness, particularly in enhancing transparency and fostering ethical decision-making. We also propose future studies to be done as a mix of econometric and machine learning methods to empirically test the framework with datasets gathered over a period of years.

Keywords: Artificial Intelligence, Corporate Governance, Data Science, Ethical Decision-Making, Organizational Ethics, Transparency

Authors’ individual contributions: Conceptualization — A.C. and P.B.A.; Methodology — A.C. and P.B.A.; Resources — A.C.; Writing — Original Draft — A.C.; Writing — Review & Editing — P.B.A.; Visualization — P.B.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C81, G34, K22, M15, O33

Received: 24.05.2023
Accepted: 14.07.2023
Published online: 17.07.2023

How to cite this paper: Correia, A., & Água, P. B. (2023). Artificial intelligence to enhance corporate governance: A conceptual framework. Corporate Board: Role, Duties and Composition, 19(1), 29–35. https://doi.org/10.22495/cbv19i1art3