Directors Face New Duties AI Under King V

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.

FAQs

1. What is King V and when does it take effect?
   King V is South Africa's newest corporate governance code, effective from 2026. It reinforces that governance means exercising ethical and effective leadership, requiring directors to create sustainable value while upholding accountability, transparency, and trust.
2. How does King V address artificial intelligence?
   King V explicitly includes artificial intelligence within information and technology governance, requiring boards to take responsibility for how data, systems, and emerging technologies—including AI—are used across the organisation.
3. Can directors delegate AI oversight to IT or compliance teams?
   No. Under King V, accountability for AI shifts directly to the board. Directors must understand AI's implications themselves, ensure appropriate human oversight, and align its use with principles like fairness, transparency, and accountability.
4. What AI-related risks must boards now manage?
   Boards must integrate AI-related risks—such as bias, privacy breaches, cybersecurity threats, and reputational damage—into enterprise risk management, while also weighing these risks against the innovation and efficiency opportunities AI offers.
5. What does "demonstrable governance" mean under King V?
   It means organisations must not only apply governance principles but explain how they've done so, supported by structured disclosure approved by the governing body. Directors must show evidence of effective oversight rather than relying on general compliance statements.