International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 2 (March-April 2026) Submit your research before last 3 days of April to publish your research paper in the issue of March-April.

AI Governance: Balancing Stakeholder and Shareholder Interests

Author(s) Dr. Saroja V.B.N.H. Achanta
Country India
Abstract The multiplicity of Artificial Intelligence technologies has fundamentally disrupted traditional corporate governance paradigms, intensifying the longstanding tension between shareholder primacy and stakeholder capitalism. This conceptual paper develops an integrative theoretical framework examining how corporate boards can reconcile these competing imperatives in an AI-transformed business environment. Drawing upon agency theory, stakeholder theory, stewardship theory, and resource dependence theory, we propose a dynamic governance model that reconceptualises fiduciary duties for the digital age. The framework identifies AI as both a catalyst and an enabler of balanced governance—simultaneously creating stakeholder impacts demanding board attention while providing technological capabilities for enhanced transparency and multi-dimensional value creation.
The present study explores four critical governance dimensions: structural mechanisms (committee architectures), process innovations (stakeholder impact assessments), competency requirements (digital literacy and ethical reasoning), and accountability frameworks (algorithmic oversight). The paper contributes to corporate governance scholarship by theorizing how boards can transcend the false dichotomy between shareholder and stakeholder interests through AI-enabled “enlightened value maximization.” The present analysis concludes with suggestions for empirical research and practical guidance for boards, legislators, and business educators navigating this evolution in corporate governance.
Keywords Stakeholder Capitalism, Shareholder Primacy, Board Governance, Artificial Intelligence, Corporate Governance Theory
Field Business Administration
Published In Volume 7, Issue 6, November-December 2025
Published On 2025-12-28
DOI https://doi.org/10.36948/ijfmr.2025.v07i06.64772

Share this