ABSTRACT This paper examines the impact of emerging technologies such as social media and artificial intelligence (AI) on corporate boards’ governance function. First, we analyze how boards’ responsibilities, governance, and advisory roles evolve as firms incorporate AI into their decision-making processes alongside collective intelligence. Next, we examine how the increased volume and selective filtering of information through social media could intensify disagreements among directors, potentially impairing boards’ effectiveness. Finally, we propose potential strategies to address these challenges, enabling firms to harness technological advancements while maintaining board effectiveness. JEL Classifications: M41; G30; G34; O33.
Srinidhi et al. (Fri,) studied this question.