The era of artificial intelligence: what implications for the board of directors?

Abstract

Purpose

Artificial intelligence (AI) is a cutting-edge new reality already having an unprecedented impact on society, the economy and businesses. Its future developments and long-term influence are still largely unknown. This article aims to examine AI’s potential benefits and challenges to corporate governance mechanisms, focusing on the board of directors.

Design/methodology/approach

The paper theoretically explores the influence of artificial intelligence on the board of directors’ capabilities, roles and functions.

Findings

Concerning rethinking board functioning in the era of artificial intelligence, the paper analyzes how artificial intelligence can impact the board of directors. It proposes some recommendations on how directors can more effectively integrate artificial intelligence into the boardroom, including establishing an internal artificial intelligence committee composed of experts with technical knowledge dedicated to managing artificial intelligence-related potential threats and opportunities.

Practical implications

Companies are invited to have some technical knowledge and expertise on artificial intelligence on the boards, fostering directors to upskill themselves in the new artificial intelligence technologies and establishing an ad-hoc internal committee. Policymakers are expected to keep pace with the growing proliferation of artificial intelligence solutions, defining a sharp regulatory framework.

Originality/value

The study advances knowledge in the corporate governance literature by shedding light on the effects of artificial intelligence on boards of directors and suggesting a set of best practices for its effective implementation.

Citation

Agnese, P., Arduino, F.R. and Di Prisco, D. (2025), "The era of artificial intelligence: what implications for the board of directors?", Corporate Governance, Vol. 25 No. 2, pp. 272-287. https://doi.org/10.1108/CG-06-2023-0259