Corporate Governance in the Age of Algorithmic Human Resource Management: Directors' and Officers' Oversight of Artificial Intelligent Systems:

The integration of artificial intelligence with human resource management has accelerated in a big way, fundamentally altering the organizational decision-making processes, and thereby posing unprecedented governance issues for the corporate directors and officers. This theoretical analysis explores the problem of traditional corporate governance structures and fiduciary obligations being challenged by algorithmic HRM systems. Drawing on recent scholarship from corporate governance, organizational theory, and information systems, the authors examine the development of algorithmic HRM as a field of governance that is critical and needs to be addressed at the board level. They synthesize existing research addressing questions of AI governance, fiduciary duties in algorithmic contexts, and organizational accountability mechanisms in order to propose an integrative framework for algorithmic stewarding. The analysis shows important shortcomings in current governance models, especially the lack of clarity around AI decision-making, the lack of centralised structures of accountability, and the insufficiency of traditional monitoring mechanisms. They present the notion of algorithmic stewardship, expanding the concept of fiduciary theory to non-human decision agents and suggesting specific obligations for directors and officers in monitoring AI-mediated HRM. The framework identifies key governance capabilities, such as AI literacy, audit mechanisms, and escalation protocols that enable effective oversight. This review adds to corporate governance theory by reconfiguring the board responsibilities in algorithmic organizations and suggests practical implications to regulators and practitioners, as well as researchers dealing with the intersections of AI, HRM and corporate accountability.