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

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 technology focused 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.