10 THE ITALIAN LAW JOURNAL NOS. 1-2 (2024)

 

Bridging Traditional Corporate Governance and Technology: the ‘AI Corporate Design’ Framework to Computational Corporate Governance Model

by Giuseppe Claudio Cicu

Emerging technologies like artificial intelligence and big data are rapidly transforming social, political, and economic landscapes. This technological revolution is reshaping business organization and operations, leading to new corporate governance forms where AI is integrated into various managerial functions. However, the uncritical integration of AI poses risks, including transparency and accountability issues. To mitigate these risks, the paper proposes an ‘AI by Corporate Design’ framework, aimed at integrating AI solutions through reengineering corporate mechanisms and processes, ensuring adherence to ethical, legal, and algorithmic standards. This framework combines corporate governance rules, business process management (BPM) techniques, legal provisions like ‘privacy by design’, and recommendations for responsible AI use from regulators. However, since the framework is voluntary, it is advisable to consider technology as a fourth dimension of corporate structure, along with organizational, administrative, and accounting structures, thus incorporating it into the realm of director’s duties.

DOI 10.23815/2421-2156.ITALJ           ISSN 2421-2156

 Read the full article