Fulfilling fiduciary duties in the ai era: emerging risks and responsibilities in ai-assisted corporate financial oversight

Abstract

This article examines emerging legal issues and theories of liability for directors involved in the management of AI financial instruments that are protected as trade secrets. The main question of the article is whether excessive delegation of functions or lack of transparency of AI algorithms can undermine the performance of fiduciary duties by directors. By reviewing case law in the context of strict oversight of past technological failures, the article proposes a renewed approach to the use of blockchain tools that will maintain efficiency benefits while ensuring necessary reporting and accountability. The study suggests that governance based on the principles of auditing AI performance and setting minimum standards for explainability can help strike a balance between driving innovation, addressing liability issues, and aligning with modern doctrines that hold boards accountable for key decision-making. new technologies. As algorithms become increasingly integrated into senior management decision-making processes, there is a need to further explore transparency mechanisms and monitoring processes that will support evolving fiduciary responsibilities in relation to evolving automation capabilities that impact shareholder interests.