AI in the Boardroom: Let the Law be in the Driving Seat

Abstract

This paper discusses the policy goal and the importance of law and regulation in introducing artificial intelligence (AI) to the boardroom. First, the authors argue that AI in the boardroom should be utilised to address the current shortcomings in the corporate governance – corporate short-termism. Secondly, AI can be programmed to assist the board in considering the wider societal interests as AI can digest big data generated daily, beyond the capability of manual processing of such amount of data within meaningful time duration. With well-designed algorithmic steps, AI can provide guidance independent of human subjective judgements focused on shareholder short-termism and board opportunism. Thirdly, company law should be revised to support this AI-assisted corporate sustainable development by mitigating the legal risks of the board so as to encourage the directors to use AI to achieve the ESG goals of the company.