The Impact of Artificial Intelligence on Corporate Governance: Ethical Implications and Governance Challenges

The adoption of Artificial Intelligence (AI) in corporate governance has emerged as a significant trend, with varied impact across global regions. This study evaluates the influence of AI on corporate governance practices, identifies the challenges and opportunities of AI implementation in Kenya, and compares AI utilization across different regions. Drawing from empirical evidence, it is observed that AI has enhanced decision-making, risk management, and compliance in developed regions like the U.S., Europe, and China, but its impact is limited in developing regions due to infrastructural and regulatory challenges. In Kenya, the primary obstacles to AI adoption include a lack of technological infrastructure, insufficient AI talent, and regulatory uncertainty, yet there are opportunities driven by the country’s growing digital economy. A comparative analysis reveals significant disparities in AI adoption across regions, with developed economies leading in utilization while developing regions lag behind. The study highlights the need for improved regulatory frameworks, AI education, and investment in infrastructure to bridge these gaps. Overall, the research underscores the transformative potential of AI in corporate governance and emphasizes the importance of addressing regional challenges to achieve broader adoption and integration.