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I can no longer edit my comment, but I have now read all 75 Pages, and the Article does in fact mention some of these issues, such as member-managed vs manager-

I can no longer edit my comment, but I have now read all 75 Pages, and the Article does in fact mention some of these issues, such as member-managed vs manager-managed LLCs and then in the "detection problem" section they discuss incorporators, directors, officers of corporations. Still the premises of the Article is flawed, and found in Section 1(b), Initiating Algorithmic Entities, on page 13, in part: >Bayern specifies this chain of events as capable of establishing the link: (1) [A]n individual member creates a member-managed LLC, filing the appropriate paperwork with the state; (2) the individual(along, possibly, with the LLC, which is controlled by the sole member) enters into an operating agreement governing the conduct of the LLC; (3) the operating agreement specifies that the LLC will take actions as determined by an autonomous system, specifying terms or conditions as appropriate to achieve the autonomous system’s legal goals; (4) the sole member withdraws from the LLC, leaving the LLC without any members. The result is potentially a perpetual LLC—a new legal person—that requires no ongoing intervention from any preexisting legal person in order to maintain its status. The premises is the last member (owner) withdrawing from the LLC leaving an AI to run the perpetual LLC, which is a legal impossibility. Every State has a law requiring an LLC have at least one member, and upon the withdraw of the last member of an LLC the LLC immediately becomes administratively dissolved (no longer in good standing with the State) under the State's law. Its not novel, similar laws govern situations when the sole member of an LLC dies, either the LLC automatically dissolves or ownership gets distributed to the member's heirs, pursuant to the specific State's laws, but the managers and/or employees don't go on running the member-less LLC whether they are human or an AI.

Teever 9y ago
I haven't had a chance to read this document yet but I was wondering what your thought of the utility of a Bearer Instrument in this situation? Are there any jurisdictions that allow incorporation to be represented by a Bearer Instrument? https://en.wikipedia.org/wiki/Bearer_instrument https://en.wikipedia.org/wiki/Bearer_instrument
phkahler 9y ago
What if the AI creates a fake identity? On a related note, what if we substitute a person on a remote connection to a computer instead of an AI? That seems far more dangerous and probably exists today.
- will_brown 9y ago
  >What if the AI creates a fake identity? The article addresses this as a potential issue, but also goes into the game of cat and mouse with humans currently creating fake identities and stealing identities. The authors don’t seem overly concerned about this and conclude the system (States, IRS, Etc...) are pretty effective at weeding this out already.
  - MaxBarraclough 9y ago
    From the paper: > By contrast, an algorithm could generate an unlimited number of artificial entities quickly and easily, without violating any law. For algorithms – and other criminals – entities can function as identities. > Artificial entities can more easily generate credibility because they are a form with which business people are already familiar. How would that not violate the law? If my AI commits a crime, am I not liable for it? (I'm guilty of skim-reading - maybe the answer is staring me in the face.)

Teever 9y ago

I haven't had a chance to read this document yet but I was wondering what your thought of the utility of a Bearer Instrument in this situation? Are there any jurisdictions that allow incorporation to be represented by a Bearer Instrument? https://en.wikipedia.org/wiki/Bearer_instrument https://en.wikipedia.org/wiki/Bearer_instrument

phkahler 9y ago

What if the AI creates a fake identity? On a related note, what if we substitute a person on a remote connection to a computer instead of an AI? That seems far more dangerous and probably exists today.

will_brown 9y ago
>What if the AI creates a fake identity? The article addresses this as a potential issue, but also goes into the game of cat and mouse with humans currently creating fake identities and stealing identities. The authors don’t seem overly concerned about this and conclude the system (States, IRS, Etc...) are pretty effective at weeding this out already.
- MaxBarraclough 9y ago
  From the paper: > By contrast, an algorithm could generate an unlimited number of artificial entities quickly and easily, without violating any law. For algorithms – and other criminals – entities can function as identities. > Artificial entities can more easily generate credibility because they are a form with which business people are already familiar. How would that not violate the law? If my AI commits a crime, am I not liable for it? (I'm guilty of skim-reading - maybe the answer is staring me in the face.)