Robots in the boardroom: artificial intelligence and corporate law

Florian Möslein

Chapter Chapter 27 in Research Handbook on the Law of Artificial Intelligence, 2025, pp 614-635 from Edward Elgar Publishing

Abstract: The incorporation of artificial intelligence (AI) into corporate governance, particularly through the potential use of AI systems by (or even as) directors, presents unique challenges and opportunities that stimulate the evolution of corporate law. It needs to adapt to the complexities of AI, for example by updating fiduciary duties, increasing transparency in AI decision-making and implementing data protection. The newly enacted European AI Act imposes strict regulatory requirements on the use of AI technologies in companies, emphasizing governance and accountability, which boards must incorporate into their oversight mechanisms to ensure compliance. But AI is also increasingly being used at the board level for complex decision-making, where directors can delegate decision-making rights to AI, subject to certain restrictions, while retaining ultimate management oversight. As AI technology advances, corporate law will need to adapt to potentially include AI as a director, focusing more on controlling AI algorithms ex-ante rather than director behavior ex-post, which may fundamentally alter corporate governance and regulatory strategies. Due to the market-driven approach of the AI Act and the lack of specific provisions for the use of AI in board decisions, corporate law remains critical in providing the fundamental framework for governance and accountability. Therefore, the dynamic interaction between AI developments and corporate law requires continuous legal and regulatory adaptation to maintain robust yet flexible governance structures capable of effectively managing the risks and opportunities presented by AI technologies.

Keywords: Corporate law; Boardroom artificial intelligence; AI governance; AI Accountability; Artificial intelligence (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035316489
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035316496.00036 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22539_27

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().