The emergence of Artificial Intelligence (AI) has sparked a debate among Company Secretaries regarding its implications for their profession. While AI offers efficiency and accuracy, it also raises concerns about job displacement and skill erosion. This article delves into the roles of Company Secretaries and examines the boon and curse of AI integration in their field.
Who could have predicted that one day Artificial Intelligence (AI) would permeate the world to such a degree? It all started in 1956 when Mr. John McCarthy, an American Computer Scientist, laid the groundwork for what we are experiencing today.
As of January 2023, over 2.4 million companies have been incorporated, and a staggering 59% of them are engaged in businesses where AI plays a pivotal role. This technological advancement has undoubtedly left its mark across industries, including our own.
Company Secretaries, traditionally entrusted with advising businesses on crucial matters and board decisions, now find themselves facing uncertainties due to the rise of AI. Many have lost their jobs, raising pertinent questions: Is there cause for concern? Is AI truly a curse for Company Secretaries or can it be proven to be a boon?
ROLE OF COMPANY SECRETARIES IN BUSINESS:
Role of Company Secretary is crucial in any business over time. From being an advisor or optional professional to Key Managerial Personnel or important stakeholders. The Journey was very interesting. Company Secretary can evolve the business in many manners as discussed thereafter.
1. Corporate Governance:
Corporate Governance is the most important role that any Company secretary plays. With the introduction of Environmental, Social and Governance (ESG), investors are aware of the governance to be taken care of with Environmental and social impact.
Only a Company Secretary can guide any business in taking care of ESG. How can a business be run by considering environmental and social aspects with complying law is only the CS’s cup of tea.
2. Key Managerial Personnel (KMP):
Regulation 17A of SEBI (LODR) Regulations, 2015 [for listed companies], Rule 8 and Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 made it compulsory for Companies to appoint CS as KMP. Regulatory mandates underscore the importance of Company Secretaries as Key Managerial Personnel, highlighting their indispensable role in corporate governance and decision-making.
3. Secretarial Auditor:
The requirement for Secretarial Auditor reports underscores the critical role of Company Secretaries in ensuring transparency, accountability, and regulatory compliance within organizations.
4. Social Auditor:
Company Secretaries may become Social Auditor as per the SEBI (ICDR) Regulations, 2018, after qualifying the exam with NISM. The emergence of social auditing underscores the evolving role of Company Secretaries in addressing broader stakeholder concerns and societal impacts.
5. Trademark Agent/Intellectual Property Right advisor:
Company Secretaries can be trademark agent to secure brand value of any product and secure your Intellectual property from getting being used or infringed. As guardians of intellectual property rights, Company Secretaries play a crucial role in safeguarding the brand value and integrity of organizations.
6. Internal Auditor:
Again, Companies Act requires to appoint Internal Auditor for certain companies. However, in present scenario, Companies conduct Internal Audit to assess the risks and threats present in the system itself. While AI may streamline certain audit processes, the expertise and judgment of Company Secretaries remain indispensable in identifying and mitigating risks within organizations.
7. Registration handler:
Company secretary is an expert in many fields. A competent CS can increase the value of your business and as well as decrease the value of your business. In today’s Era where is its mandatory to be law-compliant in all aspects, CS can assist you in getting license whether FSSAI, Cosmetic or BIS license. Knowledge of a CS is all there. The expertise of Company Secretaries in navigating regulatory landscapes and securing necessary licenses and permits are invaluable assets to businesses, particularly in highly regulated industries.
There are many other filed where a CS can shine out and more to come. Well, a separate book will be required to publish to know the area for CS.
Being in a whole where everything is managed by AI, most of us must doubt the future of our profession. Let’s discuss about the Boon of AI for CS:
1. Tool for assistance- AI can be used a tool for assistance in various matters;
2. Drafting Tool- These days it is very simple to draft any assignment, report in few seconds with the help of AI. CS can use these tools to save time and increase efficiency.
3. Accuracy- Being human, we can make a mistake. But if we use AI to complete he assignment, there is no chance of any mistake. There is no chance of human error.
4. Better decision maker- Any decision can be taken care of with the help of AI.
5. Productivity- Saving time and energy can lead to increase in efficiency.
AI has many other advantages too but it has curse also.
1. Obesity- Since everything is available at one click, chances of obesity is increasing among the people.
2. Lack of knowledge- Young CS use AI too much that it leads to lack of knowledge or lack of thinking power.
3. Skill Loss- CS use the AI for drafting of docs, lacking their skills of drafting. Every CS is different due to their skills and knowledge but the AI is destroying it.
4. Job replacement for small business- Small businesses do not need CS any more assistance in Compliances, AI makes it easier for them to get answer of their query.
Boon or Curse of AI solely depends on how you used it. If you use it in complementary of your business, it may be proven as boon for you, but if you are only depending on it, you can be proven as substitute for the same. What is boon or curse in your opinion, do let us know.
Artificial Intelligence should be used in a limit and with care, excessive dependence on it may destroy a person. We, CS, do have experience and knowledge in all fields, it is out hands whether to retained it or lose it with the AI.
In conclusion, the debate surrounding the impact of AI on Company Secretaries underscores the need for a balanced approach. While AI undoubtedly offers numerous advantages, its implementation must be guided by careful consideration of its implications. By embracing AI as a complementary tool and retaining core competencies, Company Secretaries can navigate this evolving landscape while continuing to add value to organizations. As stewards of corporate governance and compliance, Company Secretaries must adapt to technological advancements while upholding the principles of integrity, transparency, and accountability.
In essence, while AI presents both opportunities and challenges for Company Secretaries, its successful integration hinges on a strategic and collaborative approach that prioritizes human judgment, ethics, and expertise. As stewards of corporate governance and compliance, Company Secretaries have a pivotal role to play in shaping the responsible use of AI within organizations, ensuring alignment with ethical principles and societal values.
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Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of any organization. The information provided in this article is for general informational purposes only and should not be construed as legal, financial, or professional advice. Readers are advised to consult with qualified professionals for advice tailored to their specific circumstances. The author makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained in this article. Any reliance you place on such information is therefore strictly at your own risk.
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