The Role of Artificial Intelligence (AI) in Enhancing Corporate Governance within Enterprises

Abstract

The purpose of this paper is to examine the role of AI in enhancing corporate governance in Nigerian enterprises by combining the efficient market hypothesis (EMH) and diffusion of innovation (DOI) theory. The specific objective examined the effect of AI implementation on information asymmetry (IA) in publicly listed firms. A questionnaire-based survey was used to collect data from 81 respondents out of 83 initially distributed to individuals from the Lagos Chamber of Commerce and Industry (LCCI). The relevant hypothesis was tested using regression analysis. The findings revealed a significant effect of AI implementation on IA in publicly listed firms at 5%, respectively. The research was conducted from the perspective of business practitioners, which may limit the generalizability of the findings. The findings will make it easier for firms to navigate the AI adoption effect on IA in the Nigerian = context, which can inform policy and decision-making in organizations. This study contributes to the literature using the EMH and DOI frameworks to identify the implications of AI-based solutions on information asymmetry.

Received: 9 May 2024 | Revised: 24 December 2024 | Accepted: 27 May 2025

Conflicts of Interest 

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

The data that support this work are available upon reasonable request to the corresponding author.

Author Contribution Statement

Ijeamaka Charity Mgbemena: Conceptualization, Validation, Investigation, Writing – original draft, Writing – review & editing, Project administration. Chike Kanayo Nwosu: Conceptualization, Validation, Writing – original draft, Project administration. Chinedu Francis Egbunike: Conceptualization, Methodology, Software, Formal analysis, Data curation, Writing – original draft, Writing – review & editing, Visualization, Supervision, Project administration. Daniel Izuchukwu Chude: Methodology, Writing – original draft, Project administration. Kenebechukwu Jane  Okafor: Methodology, Investigation, Writing – original draft, Project administration.