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48 Tex. J. Bus. L. 1 (2019-2020)
Technology and Corporate Governance: Blockchain, Crypto, and Artificial Intelligence

handle is hein.journals/txjbus48 and id is 122 raw text is: Technology and Corporate Governance Blockchain, Crypto, and Artificial Intelligence By: Mark Fenwick and Erik P.M. Vermeulen Over recent decades, the on-going digital revolution has transformed many aspects of everyday life. Think of the increased power and shrinking size of personal computers and smartphones; the global expansion of the Internet and the new forms of social interaction that have been created; and, the ready availability of massive amounts of cloud-based information (Big Data), which is processed by automated algorithms for use in multiple settings. But, how has the digital transformation affected the organization and operation of business, and what does this mean for current regulatory frameworks, particularly those related to corporate governance? And, how are current and near-future technological developments - think distributed ledger technologies, smarter forms of automation and artificial intelligence - likely to disrupt the current corporate governance discussion? This paper explores these questions and concludes that current corporate governance approaches need to adapt to these technological and business developments in order to remain relevant. Go Digital! #goingdigital. This was the hashtag used at a blockchain event organized by the Organization for Economic Cooperation and Development (OECD) in Paris in mid-September 2018.2 It captures perfectly the challenge facing both individuals and organizations today. We all need to go digital. Clearly, there are huge opportunities created by emerging technologies. But, the speed and scale of current change means that we often struggle to understand and adapt. Knowing what to do is difficult when operating under conditions of cognitive uncertainty about the meaning and effects of rapid technological change. This combination of excitement and anxiety explains why the Paris OECD event attracted close to a thousand participants. No doubt there is enormous interest in #goingdigital. Similar events are being held all over the world and they generate a great deal of attention. Moreover, this interest cuts across diverse groups with very different stakes in digitalization. On one side are the old school regulators and other policymakers struggling to make sense of new realities and what it means for current rules and regulations.3 On the other are the visionary founders of start-ups who (often) see their business-building as a mission to change the world.4 Corporate governance, in particular, is a key site for this discussion and debate. Not least, because it highlights both the importance and confusion created by recent technological developments. There is a lot of interest in emerging technologies. But, what also seems clear, is that the various different stakeholders in the corporate governance space are moving at different speeds and in different directions. Everyone is aware that something important is happening. However, there is much less agreement on what the digital transformation means 'Mark Fenwick is Professor of International Business Law, Kyushu University, Japan, and Erik P.M. Vermeulen is Professor of Business and Financial Law, Tilburg University, The Netherlands. 2 OECD BLOCKCHAIN POLICY FORUM, http://www.oecd.org/finance/oecd-blockchain-policy-forum-2018.htm (last visited Mar. 18, 2019). 3 See generally, MICHEL CALLON ET AL., ACTING IN AN UNCERTAIN WORLD: AN ESSAY ON TECHNICAL DEMOCRACY, (Wiebe E. Bijkeyet al. eds., Graham Burchell trans., The MIT Press) (2009). 4 Jessica Powell, The Big Disruption, MEDIUM (Oct. 2, 2018), https://medium.com/s/the-big-disruption/the-big- disruption-36fbed0268cf. 1

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