The Impact of Artificial Intelligence Technology on Corporate Governance Transparency: A Systematic Literature Review

This study systematically synthesizes the academy literature to assess the influence of (AI) on corporate governance transparency. The primary objective is to identify domains where AI enhances management visibility and domains where it creates oversight limitations. Furthermore, this study aims to develop a conceptual framework to map ethical and practical dilemmas in the use of AI to support good governance principles. The literature selection process involved initially identifying 85 articles, which where then narrowed down to 21 relevant articles for analysis. AI shows great potential to enhance transparency through improvements in the quality of environmental information disclosure (EID) and ESG performance, as well as enhancing investment efficiency and data driven decision making through reduced information asymmetry. AI has also been shown to reduce corporate fraud and strengthen internal oversight. However, significant challenges arise from the lack of transparency and explainability of AI decision making processes, the absence of a standardized AI reporting framework, and the risk of algorithmic bias and potential abuse for tax avoidance. Therefore, a comprehensive conseptual framework is needed to promote transparency, accountability, fairness, and robust oversight in AI implementation to achieve ethical and effective corporate governance.