ARTIFICIAL INTELLIGENCE AND CORPORATE GOVERNANCE: ENHANCING ACCOUNTABILITY IN SUSTAINABLE BUSINESS MODELS
Ms. P. Deepika
Assistant Professor
Department of Management Studies
Kangeyam Institute of Technology, Nathakadaiyur, Tamil Nadu
Kavisree
I-MBA
Department of Management Studies
Kangeyam Institute of Technology, Nathakadaiyur, Tamil Nadu
S. Himanth
I-MBA
Department of Management Studies
Kangeyam Institute of Technology, Nathakadaiyur, Tamil Nadu
Abstract
Artificial Intelligence (AI) is rapidly reshaping corporate governance by introducing advanced tools that strengthen accountability, transparency, and ethical oversight within sustainable business models. Traditional governance mechanisms often struggle with information asymmetry, delayed reporting, compliance gaps, and limited real-time monitoring. AI-driven systems address these weaknesses by enabling continuous auditing, predictive risk assessment, automated compliance tracking, and data-driven decision-making. This study conceptually examines how AI enhances governance structures by improving board effectiveness, stakeholder transparency, environmental, social, and governance (ESG) reporting accuracy, and regulatory adherence.
Through machine learning algorithms, natural language processing, and advanced analytics, organizations can detect financial irregularities, assess sustainability performance metrics, and identify emerging governance risks before they escalate. AI-powered dashboards provide real-time insights into carbon emissions, supply chain practices, and social impact indicators, thereby strengthening sustainable accountability frameworks. Furthermore, AI enhances shareholder engagement by improving disclosure quality and enabling transparent communication channels.
However, the integration of AI into corporate governance introduces new ethical and strategic challenges. Algorithmic bias, data privacy risks, cybersecurity vulnerabilities, and over-reliance on automated systems may undermine governance integrity if not properly managed. Effective implementation therefore requires strong internal controls, transparent algorithm design, board-level technological literacy, and clearly defined accountability structures.
Key Words: Artificial Intelligence in Corporate Governance, AI-Driven Accountability, Sustainable Governance Models, ESG Reporting and Analytics, Predictive Risk Assessment, Algorithmic Transparency and Ethics, Automated Compliance Systems
