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Communications of the IIMA

Abstract

As AI technologies evolve, organizations must continuously adapt their governance structures to address emerging challenges related to transparency, ethics, and regulatory compliance. Given the rapid pace of AI advancements, traditional governance approaches may not be sufficient to ensure responsible AI oversight while maintaining competitiveness. This research examines AI corporate governance through the lens of Dynamic Capability (DC) Theory, focusing on how organizations can develop the capacity to sense technological and regulatory shifts, seize opportunities, and reconfigure governance mechanisms to align with AI-driven transformation. Through a literature review and the development of an AI Corporate Governance Framework grounded in DC Theory, this study explores how dynamic capabilities influence governance adaptability in the context of AI.

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