Robots in the Boardroom: Artificial Intelligence and Corporate Law

in: Woodrow Barfield and Ugo Pagallo (eds), Research Handbook on the Law of Artificial Intelligence, Edward Elgar, (2017/18, Forthcoming)

19 Pages Posted: 19 Sep 2017

See all articles by Florian Möslein

Florian Möslein

Universität Marburg (Institut für Handels- und Wirtschaftsrecht); Munich Center on Governance (MCG)

Date Written: September 15, 2017

Abstract

Due to its rapid technological development, artificial intelligence will enter corporate boardrooms in the very near future. This paper explores the interplay between artificial intelligence and corporate law, and analyzes how the two fit together. Do current corporate law rules match the challenges posed by artificial intelligence, or do they need to be adapted? More specifically, the paper focuses on the directors of corporations. We consider the extent to which human directors should be allowed – or required – to rely on artificial intelligence. Moreover, technology will probably soon offer the possibility of artificial intelligence not only supporting directors, but even replacing them. Another question is therefore whether or not such a replacement is legally admissible. At any rate, the legal strategies currently adopted by corporate law are tailored to human directors. The paper tests whether those strategies would still be suitable for boardrooms filled with robo-directors. It concludes that corporate law is highly relevant for the use of artificial intelligence in corporations, but that it will also need to be adapted to the challenges posed by this technology. In that sense, the interplay between artificial intelligence and corporate law promises to be dynamic in both directions.

Keywords: Artificial Intelligence, Company Law, Business Judgment Rule, Directors' Duties, Appointment of Directors

JEL Classification: K22, O33

Suggested Citation

Möslein, Florian, Robots in the Boardroom: Artificial Intelligence and Corporate Law (September 15, 2017). in: Woodrow Barfield and Ugo Pagallo (eds), Research Handbook on the Law of Artificial Intelligence, Edward Elgar, (2017/18, Forthcoming) . Available at SSRN: https://ssrn.com/abstract=3037403 or http://dx.doi.org/10.2139/ssrn.3037403

Florian Möslein (Contact Author)

Universität Marburg (Institut für Handels- und Wirtschaftsrecht) ( email )

Savignyhaus
Universitätsstraße 6
Marburg, 35032
Germany

HOME PAGE: http://www.uni-marburg.de/fb01/lehrstuehle/zivilrecht/moeslein

Munich Center on Governance (MCG) ( email )

Geschwister-Scholl-Platz 1
Munich, Bavaria 80539
Germany

HOME PAGE: http://www.mcg.uni-muenchen.de

Register to save articles to
your library

Register

Paper statistics

Downloads
1,053
Abstract Views
3,102
rank
19,714
PlumX Metrics