7 trends in corporate governance due to AI
In the era of artificial intelligence (AI), corporate governance is undergoing a profound transformation to meet the challenges and opportunities created by this emerging technology. Rapid advances in AI have brought with them new demands and challenges regarding transparency, ethical accountability and informed decision-making.
In this context, it is vital that corporate governance evolves and adapts to ensure that organizations reap the benefits of AI-based technology in a responsible and ethical manner. In the age of artificial intelligence, corporate governance is adapting to meet the challenges and opportunities created by emerging technology.
In this article we will highlight the seven most important trends in corporate governance such as increased transparency and accountability, the inclusion of board members with technology expertise, assessing the risks and ethical impact of AI, the use of AI in audit and compliance, data accountability and algo -the rhythms of AI, the protection of consumer rights and the need for continuous education and training in the field of AI.
1. Increased transparency and accountability
Artificial intelligence (AI) brings with it the need for greater transparency and accountability in corporate decisions and processes. Companies are expected to provide explanations and justify decisions made based on AI algorithms, ensuring transparency and protecting the rights of consumers and other stakeholders.
2. Board of Directors with technology expertise
An important trend is the inclusion of board members with technology expertise and understanding of the impact of AI. This ensures more effective governance and strategic dialogue regarding the use of AI technology, assessing risks and opportunities, and making informed decisions.
3. Ethical risk and impact assessment of AI
AI brings new risks and challenges, such as data privacy, algorithmic discrimination and ethical responsibility. Corporate governance must include appropriate assessment and management of these risks, ensuring the ethical use of AI and protecting the interests of all stakeholders.
4. AI-powered auditing and compliance
AI technology can be used to support the audit and compliance process within organizations. Artificial intelligence systems can automatically analyze risks and identify deviations from internal regulations and policies, thus facilitating the audit process and reducing human error.
5. Liability for AI data and algorithms
Companies must be responsible for the provenance and quality of data used in AI algorithms. Corporate governance must ensure transparency and accountability regarding data processing and the use of AI algorithms to avoid discrimination and unfair decisions.
6. Protection of consumer rights
The use of AI may involve the collection and processing of significant amounts of personal data. Corporate governance must ensure compliance with data protection laws and protect consumers’ rights to data privacy and security.
7. Continuing education and training
Corporate governance must support continuing AI education and training for both board members and employees. This ensures a deeper understanding of AI technology, its implications and how it can be used responsibly and ethically.
In conclusion
These trends reflect the importance of adapting corporate governance to the challenges and opportunities created by artificial intelligence.
In an ever-changing and digitized world, organizations must understand and respond to new AI governance requirements to ensure long-term success and maintain trust and relevance among stakeholders.
By implementing strong and proactive AI governance, companies can reap the benefits of the technology and minimize the risks associated with its use.
Florentina Șușnea este Managing Partner în cadrul companiei PKF Finconta. Experiența ei profesională de peste 26 de ani cuprinde domeniile de audit statutar și IFRS, consultanță fiscală, probleme de rezidență fiscală, restructurare financiară și fiscală, documentație și politici de Transfer Pricing, fuziuni și divizări, M&A, expertize judiciare, contabile și fiscale, due diligence de achiziții. Florentina este membru acreditat al următoarelor organizații profesionale: Camera Consultantilor Fiscali, Camera Auditorilor Financiari din România, Camera Expertilor și Contabililor Autorizați din România si Association of Certified Anti-Money Laundering Specialists. A absolvit Facultatea Finanțe-Contabilitate din cadrul Academiei de Studii Economice, București, Facultatea de Drept din cadrul Universității ”Titu Maiorescu”, programul MBA de la Tiffin University din SUA, este doctor în economie și a urmat numeroase cursuri naționale și internaționale în domeniul fiscal. florentina.susnea@pkffinconta.ro
