AIs could soon run businesses – it’s an opportunity to ensure these 'artificial persons' follow the law
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Friday, October 27, 2023
Up to now, artificial persons have served the purpose of helping humans achieve certain goals.
Key Points:
- Up to now, artificial persons have served the purpose of helping humans achieve certain goals.
- For example, people can pool assets in a corporation and limit their liability vis-à-vis customers or other persons who interact with the corporation.
- But a new type of artificial person is poised to enter the scene – artificial intelligence systems, and they won’t necessarily serve human interests.
- For example, AIs can read medical X-rays and do other medical tasks, and carry out tasks that require legal reasoning.
A different kind of person
- Though in some cases these entities can be held liable for their actions, the law only allows humans to fully participate in the legal system.
- The recent development of AI’s ability to understand human language unlocks its potential to interact with the legal system.
- Under a legal principle known as the internal affairs doctrine, even if only one U.S. state allowed AI-operated LLCs, that entity could operate nationwide – and possibly worldwide.
- This is because courts look to the law of the state of incorporation for rules governing the internal affairs of a corporate entity.
Building the law into AI
- We suggest a research direction of integrating law into AI agents to help ensure adherence to legal standards.
- Researchers could train AI systems to learn methods for internalizing the spirit of the law.
- In addition to embedding law into AI agents, researchers can develop AI compliance agents – AIs designed to help an organization automatically follow the law.
Law-abiding (artificial) business owners
- An AI tasked with operating the LLC and, among other things, maintaining proper business insurance would have an incentive to understand applicable laws and comply.
- Having minimum business liability insurance policies is a standard requirement that most businesses impose on one another to engage in commercial relationships.
John Nay is the founder and CEO of Nomos AI, Inc. and a co-founder and the Chairman of Brooklyn Investment Group. Daniel Gervais does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.