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ARTIERI & ROHMER (Law Offices): Corporate governance

and the challenges of artificial intelligence

by Arthur Rohmer
As its rate of adoption by business players accelerates, Artificial Intelligence (AI) management is
increasingly becoming an issue addressed at the level of corporate governance bodies.

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On 8 December 2023, the member states monitor compliance with existing laws and to ensure that the data meets acceptable
of the European Union finalized the AI Act, regulations, potentially reducing the risk of quality standards and that it can take recourse
regulation designed to provide a framework non-compliance and associated fines. against the third-party supplier in the event
for the use of AI. If this regulation, the first AI technologies can also automate routine of defects.
of its kind, has been described as «historic», tasks, allowing employees to focus on higher- The use of AI also poses a risk of copyright
it is because AI has rapidly transformed level issues. By streamlining administrative infringement associated with the use of
many industries, and the business world is processes, AI can optimize resource protected data and the reproduction of
no exception. allocation, improve operational efficiency substantial parts of these protected works
This is hardly surprising, as AI offers economic and reduce costs, as businesses can achieve in output.
players a wide range of new opportunities to more with fewer resources, strengthening Difficult questions also arise about the legality
improve their governance, both in terms overall corporate governance. of using data to train AI models and the
of cost and risk reduction and revenue In addition to the above benefits, AI can compatibility of ‘hallucinations’ produced by
generation (1.). provide greater transparency by reviewing AI with the principle of accuracy in the GDPR.
However, like many technologies, they are and analyzing data on business performance, Similarly, complying with individuals’ requests
accompanied by pressing challenges relating, operations and compliance. to block or delete their data can be technically
in particular, to the nature of the specific and logistically difficult if this personal data
legal risks associated with the use of these 2. ... the use of which poses pressing is integrated into the model.
technologies (2.). challenges for businesses. It should also be noted that while AI is often
The considerable new challenges posed seen as a tool that is becoming indispensable
1. Technology for better corporate by these technologies, and particularly in the fight against fraud, it also poses new
governance... the opacity of generative AI models, often cybersecurity risks that can bypass traditional
One of the key benefits of AI is its ability described as «black boxes», require careful protection measures against cyber-attacks
to analyze huge amounts of data in near thought upstream. and facilitate data breaches.
real time. This can provide a competitive As the rapid spread of AI is fueled in part by
advantage by enabling governance bodies the emergence of a range of new AI-related In view of the above, it has now become vital
to make more informed business decisions. tools and services offered by third parties, for corporate governance bodies to take
AI can also help flag up potential threats and the heavy dependence of economic players an interest in the impact of the use of AI.
provide early warnings, enabling businesses on these third parties raises questions. Firstly, to ensure that AI is used responsibly
to take proactive steps to mitigate risks. For example, if a business plans to rely on and ethically, in line with the company’s
By constantly monitoring data, AI can data supplied by third parties and obtained strategic objectives and values, but also
identify anomalies, detect fraud and improve via AI systems, it should endeavor to put in to better understand the opportunities and
cybersecurity measures. Similarly, AI can place contractual frameworks enabling it risks it presents.

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