Is Artificial Intelligence a New Stakeholding Agent?

Corporate governance has been primarily concerned with  agency problems among human stakeholders. However, the rise of artificial intelligence (AI) is changing the dynamics of governance across the corporate ecosystem. AI has evolved from a passive tool to an autonomous entity, driving strategic decisions, streamlining enterprise processes, and upending traditional governance mechanisms. Though AI does not have intent like a human, its algorithms and decision-making processes are still susceptible to bias and opacity, which raises issues of ethics and accountability. The paper examines AI's changing role as a governance agent in the interaction with traditional corporate stakeholders and calls for adaptive governance frameworks. It illustrates the need for AI ethics committees, public disclosure requirements for algorithmic transparency, and mixed human-AI governance structures to support responsible corporate AI.