Transformation of Fiduciary Duties of Directors in Light of the Development of Artificial Intelligence

<jats:p>When managing a legal entity, a director owes fiduciary duties, the substance of which encompasses the duty of loyalty and the duty of care in the exercise of management functions. In light of the advancement of digital technologies, particularly artificial intelligence, the standard of a director’s fiduciary duties is undergoing a transformation. Consequently, courts may face challenges in assessing the good faith and reasonable care of directors who use artificial intelligence as compared to those who do not. The paper proposes the introduction of a presumption that a director employs artificial intelligence when making corporate decisions. Furthermore, it argues for extending to directors a standard that implies a duty to establish a corporate governance system augmented by artificial intelligence.</jats:p>