The Conversation — AI · September 15, 2026

AI has arrived in South Africa’s boardrooms – but company law hasn’t caught up

Corporate LawLawManagement

THE AI ANGLE

Assisting and automating corporate boardroom decision-making and risk analysis

While South African corporate boards are increasingly utilizing AI to analyze financial data, forecast market trends, and assist strategic decision-making, the country's company law provides no clear framework to regulate its boardroom use. This regulatory gap creates significant legal uncertainty regarding directors' fiduciary duties, the applicability of the business judgment rule, and liability when AI recommendations result in corporate losses or third-party harm. Consequently, legal scholars are calling for statutory reforms to establish parameters for delegation, require human oversight, and mandate baseline AI literacy for directors.

THE TEACHING ANGLE

Faculty can examine the legal tension between delegating board functions to AI and maintaining non-delegable fiduciary duties, specifically questioning whether directors can legitimately exercise independent business judgment when relying on unexplainable 'black box' algorithms.

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AI has arrived in South Africa’s boardrooms – but company law hasn’t caught up

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