Artificial Intelligence and corporate governance
As automation and artificial intelligence become more commonplace in various industries, society is reaping unprecedented benefits, in regards to the corporate governance surely.
Even roles traditionally dependent on humans, such as supermarket cashiers and taxi drivers, have the potential to be replaced by artificial intelligence (AI).
With this technology embedded in almost every aspect of our lives, from navigation apps to ride-sharing services, its ability to transform business operations is immense.
Artificial Intelligence and the business environment
Engineers and computer scientists have worked and are working to perfect AI technology, leading to remarkable discoveries about how it can support organizational efficiency, decision-making and risk management within companies.
CEOs, board members and managers can use AI tools to improve corporate governance and adopt effective leadership strategies.
By integrating AI tools into the management of board meetings, business strategies and current operational decision-making processes, increased efficiency is ensured within the organization.
Ways AI supports corporate governance
Here are some ways that AI-based tools can strengthen corporate governance and become practical solutions for companies’ day-to-day operations, simplifying executive training and improving work practices.
1. Making market forecasts
AI-based technology can analyze market patterns and statistics to highlight trends. AI tools provide valuable insights for financial decision-making, enabling companies to scale their businesses and increase profitability. They are also useful for analyzing investments and developing business plans.
2. Risk management
AI tools, capable of modeling risks and operating with large amounts of data, help manage and mitigate risks within corporate governance practices. By monitoring risks in real time, company executives and directors can proactively address potential issues, ensuring better crisis management and reducing risks.
3. Data-driven decision making
AI simplifies corporate governance by facilitating data-driven decision making. By feeding relevant data into AI decision-making tools, companies can analyze patterns and trends, enabling more efficient approaches to operations. These tools are useful for analyzing investments and providing insights into board meetings, providing faster and more accurate decision-making compared to traditional methods.
4. Solid financial reviews
AI excels at documenting and evaluating financial data. Financial AI tools support the creation of financially sustainable business practices, complemented by deep insights and intelligent predictions from various AI technologies. During board meetings, AI tools can help make real-time strategic decisions based on financial trends. AI’s mathematical pre-processing capabilities make it more reliable and efficient than human analysis.
Incorporating AI-based technology into business practices is crucial for effective corporate governance, as it improves efficiency, simplifies executive training, and facilitates business scaling.
While AI technology will never replace human efforts entirely, it significantly improves operations for everyone involved. As technology continues to evolve, AI will likely play an increasingly important role in corporate governance.
Future developments may focus on financial management, decision-making processes, fraud detection, data analysis, talent recruitment, training and relationship management.
There are some concerns about the potential impact of AI on the employment rate as it replaces certain job roles. However, AI tools have the potential to create new employment opportunities, ultimately contributing to overall economic improvement.
The answer to the question of whether artificial intelligence can help boards is a resounding yes, based on its demonstrated potential and continued progress in the field.
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. email@example.com