New risks related to emerging technologies and reputation for corporate governance

Abstract

Artificial intelligence (AI) has moved from theory into the global marketplace. The United Nations World Intellectual Property Organization released the first report of its Technology Trends series on January 31, 2019. It considered more than 340,000 AI-related patent applications over the last 70 years. 50 percent of all AI patents have been published in just the last five years. The challenges, potential risks, and opportunities for business and corporate governance from emerging technologies, especially artificial intelligence, have been summarized as whereby machines and software can analyze, optimize, prophesize, customize, digitize and automate just about any job in every industry. Boards of directors and executives need to recognize and understand the new risks associated with these emerging technologies and related reputational risks. The major research question of this paper is how boards of directors and executives can deal with both risk challenges and opportunities to strengthen corporate governance. Accordingly, the following sections of this paper discuss key risk management issues: deep shift risks, global risks, digital risks and opportunities, AI initiatives risks, business risks from millennials, business reputational risks, and conclusions.

Exploring of the Integration of Emerging Technologies and Corporate Governance

“…As shown in Figure 1, there are still many challenges and risks that need to be addressed, such as deep transfer risk, global risk, business reputation risk, ethical influence risk etc. Figure 1: A framework for risk governance and risk identification [3] For deep shift risks, in 2016, the World Economic Forum's Global Agenda Committee on the Future of Software and Society spoke to more than 800 executives and experts in information and communication technologies and asked them to estimate when "tipping points" will be reached for 21 key technologies, such as brain-computer interfaces, the Internet of Things, and more, and when deep transformations will enter the mainstream. Deep change refers to large societal changes that "have profound effects on human health, the environment, global business, and international relations."…”

“…Its failure to protect data is deeply troubling. Another U.S. senator, Elizabeth Warren of Massachusetts, called on Equifax executives to return some of their pay [3].…”

“…Moreover, Hugh Grove, Mac Clouse and Tracy Xu discuss the risks and challenges associated with applying emerging technology governance during a time when emerging technologies are widely adopted. They also explore the appropriate actions that boards and CEOs should take in response to these risks and challenges [3].…”