Navigating sustainable corporate governance in the age of artificial intelligence: primary evidence from Italy

In the current economic and business context, Artificial Intelligence (AI) becomes a debated topic among academic and practitioners. Although the specific literature has outlined the relationship between top management and digitalization, sustainability topics remain less scrutinized, particularly concerning AI. With these premises, this study intends to investigate whether sustainable corporate governance (SCG) affects disclosure about AI. To test the research hypothesis, we adopted a mixed approach (i.e., content analysis, structural equation modelling, ordinary least squares and lasso regression) working on a sample of 104 Italian listed companies. Firms with higher levels of SCG scores display a greater impact on AI disclosure, suggesting that sustainable boards are demonstrating greater integration of AI in their disclosures as well as in their decision-making processes. Although the literature is becoming increasingly interested in sustainable corporate governance issues, research is still lacking. To the best of the authors’ knowledge, no study has previously investigated possible relationships between sustainable governance and the digitization process, especially with regard to the implications of AI. Our findings provide insightful contributions to SCG- and AI-related literature, enriching the UET framework. In doing this, this study provides important implications for managers – especially at a strategic level – and policymakers. The research is not free from limitations. First of all, AI disclosure is assumed to be representative of effective AI implementation, leaving room for doubt as a level of AI disclosure does not guarantee the same level of actual integration. Furthermore, it falls into a single-year analysis (2023) and Country (Italy). Therefore, future studies, survey-based, could increase the accuracy of the AI index and expand the analysis over time as well as to other countries.