Research on the Impact of Artificial Intelligence on Corporate Governance—A Case Study of Agency Costs

Xinyun Ye

doi:10.54254/2754-1169/2025.BL29363

Advances in Economics, Management and Political SciencesOpen access

Research on the Impact of Artificial Intelligence on Corporate Governance—A Case Study of Agency Costs

Research Article

Open Access

Research on the Impact of Artificial Intelligence on Corporate Governance—A Case Study of Agency Costs

Xinyun Ye ^1*

¹ University of Macau

^*Corresponding author: xinyunye5@gmail.com

Published on 11 November 2025

AEMPS Vol.239

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-525-7

ISBN (Online): 978-1-80590-526-4

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Abstract

This paper looks at how investing in artificial intelligence (AI) affects company agency costs. Using data from non-financial firms listed in Shanghai and Shenzhen A-shares in China between 2012 and 2024, it carries out a real-world study with a fixed-effects model. The results show that corporate AI investment significantly increases both Type I and Type II agency costs, specifically the management expense ratio between shareholders and management, and the proportion of other receivables between major stockholders and minority stockholders. This worsens the conflicts of interest between company owners and managers, and also between large owners and small owners. Based on these conclusions, this paper proposes that a corporate governance system adapted to AI investment should be improved, and enterprises should focus on enhancing investment efficiency and building transparency to ensure that AI investment truly serves sustainable development and long-term value enhancement of enterprises.

Keywords:

Artificial Intelligence, Corporate Governance, Agency Costs

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