In a new Working Paper, Floris Mertens offers a first glimpse on his ongoing PhD research about the implementation of artificial intelligence (AI) in the management of corporations. His working paper highlights the growing recognition in the corporate realm that AI systems can usefully assist directors and managers of corporations, while static company law frameworks around the world remain rooted in exclusively human decision-making. Therefore, uncertainty exists about whether it is lawful to enhance the business judgement of directors with the help of AI.
This Working Paper maps the legal problems arising from the potential roles of AI in the management of traditional corporations, in addition to novel memberless and leaderless entities. Its strongest focus lies on fundamental questions of corporate law pertaining to the delegation of decision rights to AI, the full replacement of human directors by AI, the required human supervision of AI and the attribution of liability for algorithmic failure.