CABO VERDE LAW AND PRACTICE Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Júlio Martins Júnior and Manuel Esteves Albuquerque, Raposo Bernardo & Associados
8.4 Key Disclosure Requirements for AI Use Although the Cabo Verdean Commercial Companies Code does not contain specific disclosure require - ments regarding artificial intelligence, companies are bound by general, technology-neutral reporting duties. If AI use has a material impact on the business, direc - tors must address it within the annual management report. Specifically, this report must include a clear description of the principal risks and uncertainties fac - ing the company, which would encompass significant AI-related vulnerabilities such as cybersecurity, data privacy, or operational risks. The report also requires an analysis of relevant non- financial performance indicators, meaning that any material impact of AI on the workforce or environ - mental matters must be clearly addressed. Lastly, if the company engages in off-balance sheet operations whose risks or benefits are financially relevant, such as specific AI technological partnerships or software licensing agreements, the nature and business pur - pose of these operations must be disclosed.
Harm to the company (financial/reputational risk) Directors are jointly and severally liable to the com - pany for damages caused by acts or omissions that breach their legal or contractual duties, unless they can prove they acted without fault. AI failures gen - erating massive fines, IP loss or severe reputational damage expose directors to compensating the com - pany itself. Direct damages to third parties (safety and data breaches) Directors are liable to shareholders and third parties for damages directly caused to these parties in the exercise of directorial functions. Negligent AI use causing direct losses to clients, partners or data sub - jects can lead to direct civil liability.
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