Artificial Intelligence in Corporate Governance

Abstract

The prevalent artificial intelligence (AI) applications of today merely exemplify the full potential of artificial intelligence in the business realm. Artificial intelligence is poised to assume a general role in the management of companies, as it is increasingly being used as a tool to support the administrative work and decision-making of directors and managers. While the appointment of a robotic director may still seem like science fiction, the widespread use of artificial intelligence in corporate governance has proven to streamline the decision-making process. In general, corporate laws around the world are still based solely on human decision-making and deny the role of technology in corporate governance. This results in ineffective regulation strategies for artificial intelligence systems with managerial authority. As a result, there is uncertainty about the legal permissibility and legal implications of implementing artificial intelligence in the corporate sphere, which may discourage corporations from adopting artificial intelligence, even though the technology is likely to optimize the business process. This article aims to highlight the growing importance of artificial intelligence in corporate governance, with a focus on the development of a legal framework and general provisions on the legal position of artificial intelligence. The article offers a legal analysis of the potential role of artificial intelligence in the corporate lawyer’s legal work, focusing on potential risks and ways to minimize them.