From the abstract of Algorithmic Entities, 95 Washington University Law Review (Forthcoming), by Lynn LoPucki (UCLA):
This Article argues that algorithmic entities — legal entities that have no human controllers — greatly exacerbate the threat of artificial intelligence. Algorithmic entities are likely to prosper first and most in criminal, terrorist, and other anti-social activities because that is where they have their greatest comparative advantage over human-controlled entities. Control of legal entities will contribute to algorithms’ prosperity by providing them with identities that will enable them to accumulate wealth and participate in commerce.
Four aspects of corporate law make the human race vulnerable to the threat of algorithmic entities. First, algorithms can lawfully have exclusive control of not just American LLC’s but also a large majority of the entity forms in most countries. Second, entities can change regulatory regimes quickly and easily through migration. Third, governments — particularly in the United States — lack the ability to determine who controls entities they charter and so cannot determine which have non-human controllers. Lastly, corporate charter competition, combined with ease of entity migration, makes it virtually impossible for any government to regulate algorithmic control of entities.