The inter-relationship among corporate governance, artificial intelligence, and innovation

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Although research in the field of corporate governance has been exhaustive recently many scholars have focused on the relationship between corporate governance attributes and artificial intelligence, corporate governance attributes and corporate innovation, there are few studies that combine corporate governance, artificial intelligence and corporate innovation. The main reason is due to the quantitative difficulties in measuring and distinguishing artificial intelligence activities and corporate innovation activities in enterprises. This study examines the relationships among corporate governance attributes, artificial intelligence, and corporate innovation. Adopting a new perspective, we have tried to help resolve the issue using a content analysis that integrates data from over 50 United States companies to analyze the relationship between board attributes, practice of artificial intelligence (AI) and firm innovation for the period 2018–2022. The results suggest that certain aspects of boards, such as board size, board diversity, and ownership concentration show the most significant correlations with firm AI development and innovation for overall industries, but the levels of associations also vary depending on different innovation measurements and samples considered in specific industries. Moreover, the mediating effects of AI and innovation are examined, respectively. Lastly, we also discovered changes in the industry’s attention to AI development before and after COVID-19 (2020). This research offers implications to corporate decision-makers as to how to proceed if the intent is to offer commercialized AI advancements and successful breakthrough innovations.

Keywords: Corporate Governance, Ownership Concentration, Artificial Intelligence, Innovation

JEL Classification: M41, M31

Received: 03.11.2023
Accepted: 10.11.2023

How to cite: Gouiaa, R., & Huang, R. (2024). The inter-relationship among corporate governance, artificial intelligence, and innovation. In T. O. Sigurjonsson, A. Kostyuk, & D. Govorun (Eds.), Corporate governance: Participants, mechanisms and performance (pp. 92–102). Virtus Interpress. https://doi.org/10.22495/cgpmpp20