The Intersection of AI and Corporate Governance: Legal and Economic Implications in the Digital Age
The Intersection of AI and Corporate Governance: Legal and Economic Implications in the Digital Age

Author(s): Enrik Sejdinaj, Rezart Dibra, Rakela Zefi Lazaj, Besmir Kanushi
Subject(s): Economy, Business Economy / Management, ICT Information and Communications Technologies, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: AI; Corporate Governance; Legal Implications; Economic Implications; Digital Age
Summary/Abstract: The rapid integration of Artificial Intelligence (AI) into corporate governance has transformed decision – making processes, operational efficiency, and strategic oversight in the digital age. As AI technologies become increasingly embedded in corporate structures, they bring forth significant legal and economic implications. This research underscores the importance of understanding how AI influences governance frameworks, particularly in addressing emerging risks and opportunities in a digitally driven economy. This study aims to analyze the impact of AI on corporate governance, focusing on the legal and economic implications that arise from its adoption. It seeks to explore how AI reshapes decision making, risk management, and regulatory compliance within corporate entities. The research employs a mixed-method approach, combining a comprehensive literature review with qualitative analysis of case studies and regulatory frameworks. This methodology allows for a nuanced understanding of the intersection between AI and corporate governance. The study reveals that AI significantly enhances decision-making accuracy and operational efficiency in corporate governance. However, it also identifies critical legal risks, such as data privacy concerns, algorithmic bias, and accountability issues. Economically, AI adoption drives competitive advantage but may exacerbate inequalities and disrupt labor markets. The findings highlight the need for robust regulatory frameworks to mitigate risks while maximizing AI's potential. The research concludes that AI's integration into corporate governance presents both transformative opportunities and complex challenges. It emphasizes the necessity for policymakers and corporate leaders to develop adaptive strategies that balance innovation with ethical and legal considerations. Practical recommendations include fostering transparency, ensuring accountability, and promoting inclusive AI adoption to harness its full potential in the digital age.

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