IMPLICATIONS OF ARTIFICIAL INTELLIGENCE ADOPTION AND CORPORATE GOVERNANCE MECHANISMS: A COMPARATIVE EMPIRICAL STUDY OF EUROPEAN UNION, CHINA, AND NIGERIA Section Articles

Abstract

Artificial Intelligence (AI) has become a disruptive technology with the potential of
transforming corporate governance (CG) by increasing transparency, monitoring
effectiveness, and decision-making quality. Though its use is rapidly spreading throughout
the world, there remain substantial differences in the governance impacts that arise from
AI in advanced economies compared to those in developing nations. This research
investigated the governance impacts that resulted from AI implementation through a
comparative empirical study of corporations within the European Union (EU), China, and
Nigeria from 2015 to 2025. The EU used represented a regulated and risk-based
governance framework that applies to AI; China depicted a state-led and technologyfocused approach to corporate governance, whereas Nigeria illustrated the impact of AI in
an emerging economy. This study employed a hybrid empirical methodology involving
comparative institutional assessment, secondary CG indexes, and case studies across
banks, fintechs, and governmental agencies. Stakeholder theory, agency theory,
institutional theory, and purposeful governance theory were applied to explain how AI
impacts board governance, auditing, regulation, transparency, and stakeholder
responsibility. The results found that the EU has adopted a rights-based and compliance based model

under AI Act whereas China has used a state-driven and strategic governance
approach with emphasis on sovereignty. Similarly, Nigeria has demonstrated an emerging
governance structure but fragmented in nature due to rapid development of fintech in
absence of proper regulation. The study emphasized the importance of harmonizing the
policies for AI governance which considered ethical considerations, issues related to
accountability, privacy of data and algorithmic biases.