Artificial Intelligence (AI) is increasingly transforming Corporate Governance (CG) by reshaping decision-making, compliance, risk management, and stakeholder engagement processes. As organizations operate in increasingly complex and data-driven environments, AI technologies provide new opportunities to improve transparency, accountability, operational efficiency, and strategic foresight. At the same time, the growing adoption of AI introduces significant ethical, legal, and governance challenges related to algorithmic bias, data privacy, automation, and regulatory compliance. This study aims to examine the role of AI in modern corporate governance and to explore how emerging AI technologies influence governance structures and organizational practices. The paper adopts a narrative literature review approach and analyzes academic studies, regulatory frameworks, and technological developments related to AI and governance.

The study covers key AI applications in governance, including risk management, fraud detection, compliance monitoring, automated decision-making, and strategic analytics. It also examines contemporary regulatory initiatives such as the EU AI Act, GDPR, and international ethical guidelines proposed by organizations including the OECD and UNESCO. Furthermore, the analysis addresses technological innovations such as generative AI, large language models, multimodal systems, and explainable AI.

The findings indicate that AI can substantially enhance governance effectiveness by improving decision quality, strengthening internal controls, supporting regulatory compliance, and enabling data-driven strategic management. However, the study also highlights important risks associated with transparency, accountability, ethical governance, and overreliance on automated systems. The paper concludes that the successful integration of AI into corporate governance requires responsible governance frameworks, interdisciplinary collaboration, executive training, and alignment with ethical and regulatory standards. The study contributes to the growing discussion on AI-driven governance and provides directions for future research on sustainable, transparent, and human-centered AI implementation.