Free Movement of Algorithms: Artificially Intelligent Persons Conquer the European Union's Internal Market

Abstract

This paper explores how artificial intelligence can do business in the European Union’s internal market. Basically, once artificial intelligence has been granted legal personality pursuant to the law of a Union member state, it benefits from free movement of algorithms. It can invoke the freedom of establishment laid down in the European Union’s founding treaties to have its personality recognized in other member states. While e-personhood, which the European Parliament recently put forward, runs into serious doubts, mutual recognition of personhood is mandatory for artificially intelligent companies established by means of a mechanism first proposed by U.S. scholar Shawn Bayern. The member states are precluded from adopting measures against artificially intelligent persons benefitting from free movement, save in narrowly circumscribed circumstances of justification. The measure of control natural persons exercise over artificially intelligent persons turns out to be a key variable in this regard.

Keywords: Artificial Intelligence, Algorithms, Company Law, Personhood, European Union, Internal Market, Freedom of Establishment, E-Personhood, European Parliament, Public Policy, Enforcement of the Law, Criminal Law