Investors should pay more attention to AI firms’ corporate governance

FOR decades, stockbroking research has been dominated by financial assessment, whereby analysts scrutinise revenue growth, earnings trends, balance sheets and valuation multiples before arriving at a recommendation. 

Yet, one of the most important determinants of long-term shareholder value often receives only passing attention: corporate governance.

This has long been a blind spot in investment analysis. It could become significantly more problematic as artificial intelligence companies occupy a larger share of public markets, especially since many AI plays lack decent track records of financial performance.