Diversifying Board of Directors with Artificial Intelligence: Pros and Cons

Humanity realizes a new era, “digital one”. In the digital era, every cell of society is changing radically and firms, as crucial economical actors of society, are not exceptional. As we know, one of the current debates for firms is diversification of “Board of Directors (BoDs)” of firms. Until now, pros and cons of diversification of BoDs by age, gender, education, functional background, nationality, independence of members have been discussed in a detailed way. However, a new diversification field for BoDs is emerging: Diversification of BoDs with artificial intelligence. One of the leaders in this field was Deep Knowledge Ventures, a firm operating in Hong Kong. The firm allocated a seat to “Artificial Intelligence (AI)” in 2014. In this context, diversifying BoDs with AI is becoming an alternative for firms. On the other hand, an examination of the field reveals that there is almost no detailed discussion of pros and cons of the use of AI in BoDs. Therefore, this study mainly aims to share potential advantages and disadvantages of use of AI in BoDs.