THINKING ALOUD

Investors should pay more attention to AI firms’ corporate governance

Such companies are often young and founder-led

    • The rise of AI introduces an additional layer of complexity because investors are no longer simply evaluating products and services.
    • The rise of AI introduces an additional layer of complexity because investors are no longer simply evaluating products and services. PHOTO: REUTERS
    Published Wed, Jul 1, 2026 · 07:00 AM

    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.