Corporate Management in the Age of AI - Jan 28

Presented by: Martin Petrin

Monday, January 28, 2019
12:30 pm 
SSC Room 4317



Recent media reports have created the impression that artificial intelligence (AI) is on the verge of taking over corporate management. While, upon closer inspection, it turns out that these stories may not always be taken at face value, they clearly highlight AI’s growing importance in management and hint at the enormous changes that corporate leadership may experience in the future. This article attempts to anticipate that future by exploring a thought experiment on corporate management and AI. It argues that it is not an insurmountable step from AI generating and suggesting expert decisions (which is already common today) to AI making these decisions autonomously. Proceeding based on the assumption that next-generation AI will be able to take over the management of business organisations, the article explores corporate law and governance consequences of this development. In doing so, it focuses on the fundamental areas of corporate leadership/management structures, managerial liability, and the corporate purpose. It also considers the phenomenon of algorithmic entities.