Enhancing corporate governance through AI: a systematic literature review

Abstract

Corporate governance is the system by which companies are controlled and managed. In the era of rapid technological advancements, artificial intelligence (AI) has emerged as a powerful tool with significant potential for enhancing various aspects of corporate governance. This systematic literature review critically examines the role of AI in revolutionising corporate governance, particularly focusing on non-financial sectors. By scrutinising AI's integration in diverse governance areas – including the board of directors' performance, financial distress prediction, fraud detection, and CSR and sustainability efforts – the review reveals the multifaceted and adaptable nature of AI technologies in tackling specific corporate governance challenges. Despite its considerable promise, the review underscores significant gaps in AI's application, especially in its incorporation within boardroom dynamics. These findings not only shed light on the transformative influence of AI but also identify pressing research voids. The review aims to guide future inquiries, inform business practices, and influence policy frameworks, offering essential perspectives for researchers, industry professionals, and policymakers.