Title: Examining the Moderating Effect of Regulatory Environment on AI Integration in Corporate Governance
Authors: Ibikunle Jide, & Bello Ganiyu Leke
Volume: 8
Issue: 9
Pages: 215-222
Publication Date: 2024/09/28
Abstract:
This study examines the moderating effect of the regulatory environment on the integration of artificial intelligence (AI) within corporate governance frameworks. As AI technologies continue to advance rapidly, the establishment of robust regulatory frameworks becomes essential to ensure ethical and responsible implementation. This research employs context analysis to identify and analyze key findings that highlight the intricate relationship between regulatory structures and AI adoption. The findings indicate that organizations operating within stringent regulatory environments are more likely to effectively integrate AI technologies. Such regulations foster a culture of transparency, accountability, and ethical governance, which are crucial for building stakeholder trust and ensuring compliance with emerging standards. Conversely, the study reveals that organizations in less regulated environments may experience accelerated AI adoption but face heightened ethical risks, including algorithmic bias and insufficient transparency. This dichotomy underscores the need for comprehensive regulatory oversight to mitigate potential negative outcomes associated with rapid technological deployment. Additionally, the research highlights the variability in regulatory approaches across different jurisdictions, which can complicate the formulation of universal guidelines for AI integration in corporate governance. These disparities may limit the generalizability of the findings, suggesting that organizations must navigate a complex regulatory landscape tailored to their specific regional contexts. Moreover, the study emphasizes the critical role of stakeholder engagement in shaping effective regulatory frameworks. Organizations that actively participate in regulatory discussions and collaborative efforts are better equipped to align their AI strategies with compliance requirements, leading to more adaptive and relevant regulations that reflect the realities of technological advancements. This research advocates for the continuous evaluation and adaptation of regulatory frameworks to address the evolving challenges associated with AI integration. By ensuring that ethical standards are upheld while promoting innovation, regulators can create an environment that supports both responsible AI use and effective corporate governance.