Corporate governance and artificial intelligence: The emerging legal challenges in South Africa’s boardrooms

This article examines the emerging legal and governance challenges arising from the integration of artificial intelligence (‘AI’) into South African boardrooms. As AI technologies increasingly influence corporate decision-making, they raise complex questions about directors’ fiduciary duties, accountability, and the adequacy of existing legal frameworks. Drawing on the Companies Act 71 of 2008 and the King V Code, this article examines how the adoption of AI intersects with directors’ duties of care and diligence, particularly as reliance on algorithmic tools becomes more prevalent. It critically assesses recent literature that distinguishes between assisted, augmented and autonomous AI, using this framework to analyse varying levels of AI integration and their implications for governance. The article identifies significant regulatory gaps in current soft-law approaches and argues that the King V provisions, while representing meaningful progress, require further refinement to address boardroom-specific risks and accountability concerns. To that end, the article proposes a hybrid regulatory model that combines enhanced principles-based guidance with targeted amendments to company law. This approach aims to balance innovation with legal certainty, ensuring that South Africa’s corporate governance standards evolve in tandem with AI capabilities while preserving the ethical leadership and human accountability central to sound governance.