New risks related to emerging technologies and reputation for corporate governance

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Abstract

Artificial intelligence (AI) has moved from theory into the global marketplace. The United Nations World Intellectual Property Organization released the first report of its Technology Trends series on January 31, 2019. It considered more than 340,000 AI-related patent applications over the last 70 years. 50 percent of all AI patents have been published in just the last five years. The challenges, potential risks, and opportunities for business and corporate governance from emerging technologies, especially artificial intelligence, have been summarized as whereby machines and software can analyze, optimize, prophesize, customize, digitize and automate just about any job in every industry. Boards of directors and executives need to recognize and understand the new risks associated with these emerging technologies and related reputational risks. The major research question of this paper is how boards of directors and executives can deal with both risk challenges and opportunities to strengthen corporate governance. Accordingly, the following sections of this paper discuss key risk management issues: deep shift risks, global risks, digital risks and opportunities, AI initiatives risks, business risks from millennials, business reputational risks, and conclusions.

Keywords: Artificial Intelligence, Risk Management, Corporate Governance, Technology Risks

Authors’ individual contribution: Conceptualization – H.G.; Methodology – H.G. and T.X.; Resources – M.C.; Writing – Original Draft – H.G.; Writing – Review & Editing – M.C. and T.X.; Visualization – T.X.; Funding Acquisition – M.C.

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

JEL Classification: G3, G30

Received: 13.02.2020
Accepted: 08.05.2020
Published online: 26.05.2020

How to cite this paper: Grove, H., Clouse, M., & Xu, T. (2020). New risks related to emerging technologies and reputation for corporate governance. Journal of Governance & Regulation, 9(2), 64-74. https://doi.org/10.22495/jgrv9i2art4