The rapid rise of artificial intelligence is redefining corporate governance in South Africa, with the newly introduced King V Code placing clear responsibility on boards to oversee its ethical and strategic use.
King V, effective from 2026, reflects a broader shift in governance thinking: technology is no longer a support function but a core element of leadership accountability. The Code reinforces that corporate governance is the exercise of ethical and effective leadership, requiring directors to ensure organisations create sustainable value while maintaining accountability, transparency and trust.
A key development is the explicit inclusion of artificial intelligence within information and technology governance. Under King V, boards are expected to take responsibility for how data, systems and emerging technologies are used across the organisation. This includes providing strategic direction and ensuring that technology enables, rather than undermines, organisational objectives.
Importantly, the Code shifts accountability directly to the board. Directors can no longer defer AI oversight to IT or compliance functions. They are expected to understand the implications of AI, ensure appropriate human oversight, and align its use with ethical principles such as fairness, transparency, and accountability.
AI-related risks—including bias, privacy breaches, cybersecurity threats and reputational damage—must now be integrated into enterprise risk management. At the same time, boards are required to balance these risks against the opportunities AI presents for innovation, efficiency and competitive advantage.
King V also strengthens the expectation of demonstrable governance. Organisations must apply and explain how principles are implemented, supported by structured disclosure approved by the governing body. This raises the bar for directors, who must now provide evidence of effective oversight rather than relying on high-level compliance statements.
Ultimately, King V reframes from the role of directors as stewards of both value and trust in a digital economy. As AI becomes embedded in decision-making, boardrooms are now at the forefront of ensuring that innovation is guided by responsibility, ethics and long-term sustainability.
