Corporate Governance In The Age Of AI - Use Of AI For Effective Compliance

Sidhida Varma S, Hindustan University

ABSTRACT

The modern world is run through the data. The challenging part is the management of these data which will lead to data silos. The corporate world has enormous dealings and these dealings include data streamlining, contract management, legal compliance requirements, and transactions. The most essential requirement is to manage all this by having the concept of sustainable development goals embedded in the mind. It has become an essential requirement for companies to follow the principles of corporate governance while keeping the concept of ‘people, planet, and profits’ in mind.

Before the advent of AI, one could observe that all the processes were done manually. With the manual procedures, it was very difficult for one to find out the lapses and shortcomings. The processes were time-consuming and the requirement of adequate manpower was a high priority. Furthermore, the traditional manual processes lack expert knowledge, accuracy, and skill.

With AI or technology-driven tools, large corporations were able to tackle the complexities faced due to the application of traditional methodologies. These tools help in achieving compliance, boost productivity, and efficiency, and also aid in the mitigation of risks.

This article deals with the current issues faced by corporations in corporate governance and elaborates on the utility of AI in corporate governance.