Editorial

The impact of AI and sustainability on the new institutionalisation process

Sezer B. Kahyaoglu

Published: 22 Aug. 2025

Copyright: © 2025. The Author(s). Licensee: AOSIS.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Introduction

It is a fact that the 21st century has a complex and rapidly growing structure, considering recent developments in the corporate world and the global economic crisis. We define this as a ‘volatile, uncertain, complex, and ambiguous (VUCA)’ world (Jamil & Humphries-Kil, 2017). In such a VUCA world, it has become an obligation for organisations to adapt their perspectives on their strategic goals and business objectives, business models and the physical environment in which they operate. Therefore, it is no longer sufficient to solely focus on legal compliance and financial performance in the implementation of corporate governance principles and good governance approaches. It is therefore necessary to develop a new management approach that integrates multilayered issues such as sustainability, digital transformation, artificial intelligence (AI) and business ethics simultaneously. In this respect, the traditional safeguards established in business management style and the privacy boundaries imposed for risk management have begun to be replaced by a deep understanding of transparency, accountability and responsible management (Piwowar-Sulej & Qaisar, 2023).

The rationale behind the new institutionalisation process

The adaptation of institutions to the opportunities and threats posed by global crises is crucial. Given the ever-increasing diversity of existing risks, coupled with the acceleration generated by natural hazards, climate change, social inequalities and digitalisation, the need for radical change and transformation in corporate governance systems is recognised (Valentinov, 2023). Today, institutions are not only expected to add value to their shareholders but also to demonstrate a transparent, accountable, and responsible management approach that considers the expectations of all stakeholders. From this perspective, environmental, social and governance (ESG) principles have become key criteria for ensuring the sustainability of corporate performance (Freudenreich et al., 2020).

On the other hand, the rapid rise of AI applications and digital technologies provides significant opportunities for corporate business processes in various aspects. While providing such opportunities, it is necessary to consider the risks regarding these aspects. For example, big data analytics brings us an opportunity, but it has also created new ethical issues related to data privacy in the use of big data analytics (Davison et al., 2020). In a similar style, we face potential algorithmic bias related to algorithms in AI applications, and the transparency needs in decision-making processes (Kılıç & Bozkus Kahyaoglu, 2024). In this context, ‘digital ethics’ has gained importance within the framework of corporate governance and sustainability (Guenduez et al., 2025; Mehan, 2024). To take the necessary measures in these areas, the scope of responsibility of boards of directors is diversifying and expanding to include technology-sensitive decision-making processes (EPRS, 2019).

In this new era, there is a need for the development of new management and leadership approaches, and consequently, a transformation in business culture. The main reason for this is that the nature of work has begun to transform dramatically as a result of technological developments and innovations. The workplace and its surroundings have become less important, and everything has begun to migrate to the virtual environment. This also creates a need for change in the competencies of employees involved in related business processes (Konle-Seidl & Danesi, 2022). This can be considered a broad area requiring discussion and research, and hence, this journal will fill the gap in contributing to the needs and expectations of stakeholders.

Based on the developments and changes outlined here, the areas of application in corporate governance that are emerging in the new era are: The use of ‘hybrid decision-making models’ in board decision-making processes. This is becoming increasingly common and will entirely change the structure of the board of directors in the near future (Konle-Seidl & Danesi, 2022; Wei, 2025). This hybrid decision-making process means that the interaction between human capital and artificial intelligence-based decision support systems will become the basic structure (Ustahaliloğlu, 2025). Establishing ethical oversight mechanisms is crucial for the secure implementation of AI and digital transformation (Kılıç & Bozkus Kahyaoglu, 2024; Zuiderveen Borgesius, 2018). From this perspective, practical and theoretical exploration of a wide range of topics, including auditing, risk management, cybersecurity and control activities under the main heading of corporate governance, will make a significant contribution to literature.

Conclusion

In this period of profound change, the developments emerging within the framework of this intense digital transformation, along with AI, a new phase of innovation, are also impacting management approaches. The management approach that emerged as a result of industrialisation and its subsequent phase, financialisation, does not provide sufficient tools for understanding these developments and changes. Therefore, our journal is launching its publications to generate and contribute to the requirements of this transformation and innovation. We can confidently state that our journal will make a significant contribution to this goal with publications derived from the theoretical and domain knowledge, particularly those supported by data analysis. Furthermore, new methods, approaches and techniques for knowledge generation are available here for researchers on the integration of AI, sustainability and the new management approach, which constitute this profound change and transformation, and the holistic approach of reporting and presenting this with transparency and accountability. In this context, we aim to produce knowledge that will offer solutions to the problems encountered by those with scientific, academic and field experience who wish to provide valuable information.

In summary, based on the information presented, our journal will be a publication that will include works examining the new institutionalisation process that has emerged because of the impact of digital transformation and the use of AI within institutions. This new institutionalisation process necessitates the integration of concepts such as sustainability and social responsibility within this new process. This is one of the primary objectives of the journal as a source of new knowledge. Therefore, the works in our journal are open to researchers to serve as a primary reference source for this institutionalisation process. We welcome contributions from all researchers and professionals who, within the framework of the information presented here, theoretically and practically address this transformation process and its impact on institutionalisation.

Researching these topics is gaining importance now, as future AI technologies that will process large language models faster, quantum computers, and their potential impact on corporate governance processes will require theoretical and practical knowledge. Our journal aims to be a source of information and reference for the future by establishing an editorial policy that will differentiate itself in this regard and contribute to the literature in this context.

The authors would like to thank Professor Mervyn King, who contributed to the journal’s stated aims, policies and led this process, as well as the Good Governance Academy and Witz Business School administration, who experienced and witnessed the impact of this significant transformation and change, and analysed the need for new knowledge to support the publication of this journal. As in every field, significant change and innovation are transforming scientific publishing processes. Advances in corporate governance aim to become a rapidly accessible information resource for initiating and disseminating this transformation in its publishing life. They also thank all the stakeholders for their participation in this process.

References