AI, New Technologies, and Corporate Governance: Three Phenomena

Artificial intelligence (AI) and other new technologies are increasingly influencing the operations, business models, and structures of companies. This Article focuses on three emerging phenomena that impact significant aspects of corporate governance and regulation: (1) perforation and blurring of firm boundaries through the ubiquitous use of externally provided AI services; (2) businesses engaging in strategic access and leveraging of critical resources held by third parties without owning them; and (3) the unusual hybrid role of online platforms between market facilitators and markets themselves. The Article explores how these phenomena challenge traditional views of firms as separate units, with technology leading to new connections and entanglements between a firm, the market, and other firms. Based on this, the Article argues that existing models and concepts are inadequate for addressing the challenges posed by the digital and AI revolution.

It calls for a reevaluation of corporate governance strategies, highlighting the importance of resource optimization and shared governance. It also proposes the creation of regulatory frameworks to mitigate power imbalances and ensure adequate access to AI and the platform economy.