Board of directors’ attributes and artificial intelligence disclosure: evidence from Egyptian banks

Abstract

Purpose: The purpose of this study is to investigate the influence of the board of directors’ (BODs) attributes on banks’ artificial intelligence (AI) disclosure.

Design/methodology/approach: Computerized textual analysis is applied using a set of AI-related terms to measure the level of AI disclosure in a sample of listed and non-listed banks in Egypt from 2018 to 2022. Random-effect regression analysis is used to study the influence of banks’ board size, gender diversity and meetings on the level of AI disclosure.

Findings: The results of this study reveal a growing awareness among Egyptian banks regarding their reliance on AI usage and an increased investments in AI, as evidenced by the increasing levels of AI disclosure in their annual reports. Further, results show that the banks’ BOD size and gender diversity are associated with more AI disclosure levels.

Practical implications: Results can be of interest to investors, as it provides awareness regarding the current levels of banks’ disclosure of AI practices and how banks corporate governance structure can help in improving these levels of disclosure and in enhancing transparency. For regulators and policymakers, results emphasize the need for rules and regulations to guide the disclosure of AI practices to promote a more competitive banking sector.

Originality/value: This paper focuses on a new type of disclosure related to AI information in the Egyptian banking sector. To the best of the authors’ knowledge, this paper is the first to investigate the role of BOD size, gender diversity and meetings in enhancing levels of AI disclosure.