Leveraging AI-Driven Decision-Making to Enhance Corporate Governance and Risk Management in Multinational Firms

Abstract

This study examines the concept of Artificial Intelligence (AI) application in corporate governance and risk management in multinational corporations with a particular interest in quantitative analysis. The observational study combines AI modelling and questionnaires to evaluate the effect of AI-based strategies in comparison to traditional ones. The use of AI technologies, such as machine learning and natural language processing (NLP), is aimed at evaluating the performance of governance, risk management, and efficiency of decision-making. The results show a 20% reduction in the number of operational disruptions, a 30% improvement in compliance accuracy, and a 40% quicker decision-making after the adoption of AI. Also, AI was proven to be 92% accurate in risk prediction, as opposed to 75% accuracy in traditional approaches. The improvement of AI-based risk mitigation was 30% better than that of traditional methods, which was 14%. The paper puts emphasis on the disruptive nature of AI to change the effectiveness of decision-making and risk management. According to these results, multinational companies are advised to embrace AI-based real-time monitoring and predictive analytics to reduce risks and improve the frameworks of governance. The current paper highlights the importance of AI in transforming the corporate governance and risk management process and offers quantitative data analysis to companies planning to use AI to spur operational enhancement, long-term sustainability, and resiliency in an ever-more complex global business world.