Tag Archives: The Singularity Is Near

AI-led corporate entities as a new species of legal subject

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An AI (artificial intelligence) agent running a business? Not to worry, lawyers are busy figuring out the implications according to this October 26, 2023 American Association for the Advancement of Science (AAAS) news release on EurekAlert,

For the first time in human history, say Daniel Gervais and John Nay in a Policy Forum, nonhuman entities that are not directed by humans – such as artificial intelligence (AI)-operated corporations – should enter the legal system as a new “species” of legal subject. AI has evolved to the point where it could function as a legal subject with rights and obligations, say the authors. As such, before the issue becomes too complex and difficult to disentangle, “interspecific” legal frameworks need to be developed by which AI can be treated as legal subjects, they write. Until now, the legal system has been univocal – it allows only humans to speak to its design and use. Nonhuman legal subjects like animals have necessarily instantiated their rights through human proxies. However, their inclusion is less about defining and protecting the rights and responsibilities of these nonhuman subjects and more a vehicle for addressing human interests and obligations as it relates to them. In the United States, corporations are recognized as “artificial persons” within the legal system. However, the laws of some jurisdictions do not always explicitly require corporate entities to have human owners or managers at their helm. Thus, by law, nothing generally prevents an AI from operating a corporate entity. Here, Gervais and Nay highlight the rapidly realizing concept of AI-operated “zero-member LLCs” – or a corporate entity operating autonomously without any direct human involvement in the process. The authors discuss several pathways in which such AI-operated LLCs and their actions could be handled within the legal system. As the idea of ceasing AI development and use is highly unrealistic, Gervais and Nay discuss other options, including regulating AI by treating the machines as legally inferior to humans or engineering AI systems to be law-abiding and bringing them into the legal fold now before it becomes too complicated to do so.

Gervais and Nay have written an October 26, 2023 essay “AIs could soon run businesses – it’s an opportunity to ensure these ‘artificial persons’ follow the law” for The Conversation, which helps clarify matters, Note: Links have been removed,

Only “persons” can engage with the legal system – for example, by signing contracts or filing lawsuits. There are two main categories of persons: humans, termed “natural persons,” and creations of the law, termed “artificial persons.” These include corporations, nonprofit organizations and limited liability companies (LLCs).

Up to now, artificial persons have served the purpose of helping humans achieve certain goals. For example, people can pool assets in a corporation and limit their liability vis-à-vis customers or other persons who interact with the corporation. But a new type of artificial person is poised to enter the scene – artificial intelligence systems, and they won’t necessarily serve human interests.

As scholars who study AI and law we believe that this moment presents a significant challenge to the legal system: how to regulate AI within existing legal frameworks to reduce undesirable behaviors, and how to assign legal responsibility for autonomous actions of AIs.

One solution is teaching AIs to be law-abiding entities.

This is far from a philosophical question. The laws governing LLCs in several U.S. states do not require that humans oversee the operations of an LLC. In fact, in some states it is possible to have an LLC with no human owner, or “member” [emphasis mine] – for example, in cases where all of the partners have died. Though legislators probably weren’t thinking of AI when they crafted the LLC laws, the possibility for zero-member LLCs opens the door to creating LLCs operated by AIs.

Many functions inside small and large companies have already been delegated to AI in part, including financial operations, human resources and network management, to name just three. AIs can now perform many tasks as well as humans do. For example, AIs can read medical X-rays and do other medical tasks, and carry out tasks that require legal reasoning. This process is likely to accelerate due to innovation and economic interests.

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I found the essay illuminating and the abstract for the paper (link and citation for paper at end of this post), a little surprising,

Several experts have warned about artificial intelligence (AI) exceeding human capabilities, a “singularity” [emphasis mine] at which it might evolve beyond human control. Whether this will ever happen is a matter of conjecture. A legal singularity is afoot, however: For the first time, nonhuman entities that are not directed by humans may enter the legal system as a new “species” of legal subjects. This possibility of an “interspecific” legal system provides an opportunity to consider how AI might be built and governed. We argue that the legal system may be more ready for AI agents than many believe. Rather than attempt to ban development of powerful AI, wrapping of AI in legal form could reduce undesired AI behavior by defining targets for legal action and by providing a research agenda to improve AI governance, by embedding law into AI agents, and by training AI compliance agents.

it was a little unexpected to see the ‘singularity’ mentioned. it’s a term I associate with the tech and the sci fi communities.For anyone unfamiliar with the term, here’s a description from the ‘Technological singularity’ Wikipedia entry, Note: Links have been removed,

The technological singularity—or simply the singularity[1]—is a hypothetical future point in time at which technological growth becomes uncontrollable and irreversible, resulting in unforeseeable consequences for human civilization.[2][3] According to the most popular version of the singularity hypothesis, I. J. Good’s intelligence explosion model, an upgradable intelligent agent will eventually enter a “runaway reaction” of self-improvement cycles, each new and more intelligent generation appearing more and more rapidly, causing an “explosion” in intelligence and resulting in a powerful superintelligence that qualitatively far surpasses all human intelligence.[4]

The first person to use the concept of a “singularity” in the technological context was the 20th-century Hungarian-American mathematician John von Neumann.[5] Stanislaw Ulam reports in 1958 an earlier discussion with von Neumann “centered on the accelerating progress of technology and changes in the mode of human life, which gives the appearance of approaching some essential singularity in the history of the race beyond which human affairs, as we know them, could not continue”.[6] Subsequent authors have echoed this viewpoint.[3][7]

The concept and the term “singularity” were popularized by Vernor Vinge first in 1983 in an article that claimed that once humans create intelligences greater than their own, there will be a technological and social transition similar in some sense to “the knotted space-time at the center of a black hole”,[8] and later in his 1993 essay The Coming Technological Singularity,[4][7] in which he wrote that it would signal the end of the human era, as the new superintelligence would continue to upgrade itself and would advance technologically at an incomprehensible rate. He wrote that he would be surprised if it occurred before 2005 or after 2030.[4] Another significant contributor to wider circulation of the notion was Ray Kurzweil’s 2005 book The Singularity Is Near, predicting singularity by 2045.[7]

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Finally, here’s a link to and a citation for the paper,

Law could recognize nonhuman AI-led corporate entities by Daniel J. Gervais and John J. Nay. Science 26 Oct 2023 Vol 382, Issue 6669 pp. 376-378 DOI: 10.1126/science.adi8678

This paper is behind a paywall.

Artificial intelligence (AI) company (in Montréal, Canada) attracts $135M in funding from Microsoft, Intel, Nvidia and others

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It seems there’s a push on to establish Canada as a centre for artificial intelligence research and, if the federal and provincial governments have their way, for commercialization of said research. As always, there seems to be a bit of competition between Toronto (Ontario) and Montréal (Québec) as to which will be the dominant hub for the Canadian effort if one is to take Braga’s word for the situation.

In any event, Toronto seemed to have a mild advantage over Montréal initially with the 2017 Canadian federal government  budget announcement that the Canadian Institute for Advanced Research (CIFAR), based in Toronto, would launch a Pan-Canadian Artificial Intelligence Strategy and with an announcement from the University of Toronto shortly after (from my March 31, 2017 posting),

On the heels of the March 22, 2017 federal budget announcement of $125M for a Pan-Canadian Artificial Intelligence Strategy, the University of Toronto (U of T) has announced the inception of the Vector Institute for Artificial Intelligence in a March 28, 2017 news release by Jennifer Robinson (Note: Links have been removed),

A team of globally renowned researchers at the University of Toronto is driving the planning of a new institute staking Toronto’s and Canada’s claim as the global leader in AI.

Geoffrey Hinton, a University Professor Emeritus in computer science at U of T and vice-president engineering fellow at Google, will serve as the chief scientific adviser of the newly created Vector Institute based in downtown Toronto.

“The University of Toronto has long been considered a global leader in artificial intelligence research,” said U of T President Meric Gertler. “It’s wonderful to see that expertise act as an anchor to bring together researchers, government and private sector actors through the Vector Institute, enabling them to aim even higher in leading advancements in this fast-growing, critical field.”

As part of the Government of Canada’s Pan-Canadian Artificial Intelligence Strategy, Vector will share $125 million in federal funding with fellow institutes in Montreal and Edmonton. All three will conduct research and secure talent to cement Canada’s position as a world leader in AI.

However, Montréal and the province of Québec are no slouches when it comes to supporting to technology. From a June 14, 2017 article by Matthew Braga for CBC (Canadian Broadcasting Corporation) news online (Note: Links have been removed),

One of the most promising new hubs for artificial intelligence research in Canada is going international, thanks to a $135 million investment with contributions from some of the biggest names in tech.

The company, Montreal-based Element AI, was founded last October [2016] to help companies that might not have much experience in artificial intelligence start using the technology to change the way they do business.

It’s equal parts general research lab and startup incubator, with employees working to develop new and improved techniques in artificial intelligence that might not be fully realized for years, while also commercializing products and services that can be sold to clients today.

It was co-founded by Yoshua Bengio — one of the pioneers of a type of AI research called machine learning — along with entrepreneurs Jean-François Gagné and Nicolas Chapados, and the Canadian venture capital fund Real Ventures.

In an interview, Bengio and Gagné said the money from the company’s funding round will be used to hire 250 new employees by next January. A hundred will be based in Montreal, but an additional 100 employees will be hired for a new office in Toronto, and the remaining 50 for an Element AI office in Asia — its first international outpost.

They will join more than 100 employees who work for Element AI today, having left jobs at Amazon, Uber and Google, among others, to work at the company’s headquarters in Montreal.

The expansion is a big vote of confidence in Element AI’s strategy from some of the world’s biggest technology companies. Microsoft, Intel and Nvidia all contributed to the round, and each is a key player in AI research and development.

The company has some not unexpected plans and partners (from the Braga, article, Note: A link has been removed),

The Series A round was led by Data Collective, a Silicon Valley-based venture capital firm, and included participation by Fidelity Investments Canada, National Bank of Canada, and Real Ventures.

What will it help the company do? Scale, its founders say.

“We’re looking at domain experts, artificial intelligence experts,” Gagné said. “We already have quite a few, but we’re looking at people that are at the top of their game in their domains.

“And at this point, it’s no longer just pure artificial intelligence, but people who understand, extremely well, robotics, industrial manufacturing, cybersecurity, and financial services in general, which are all the areas we’re going after.”

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Gagné says that Element AI has already delivered 10 projects to clients in those areas, and have many more in development. In one case, Element AI has been helping a Japanese semiconductor company better analyze the data collected by the assembly robots on its factory floor, in a bid to reduce manufacturing errors and improve the quality of the company’s products.

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There’s more to investment in Québec’s AI sector than Element AI (from the Braga article; Note: Links have been removed),

Element AI isn’t the only organization in Canada that investors are interested in.

In September, the Canadian government announced $213 million in funding for a handful of Montreal universities, while both Google and Microsoft announced expansions of their Montreal AI research groups in recent months alongside investments in local initiatives. The province of Quebec has pledged $100 million for AI initiatives by 2022.

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Braga goes on to note some other initiatives but at that point the article’s focus is exclusively Toronto.

For more insight into the AI situation in Québec, there’s Dan Delmar’s May 23, 2017 article for the Montreal Express (Note: Links have been removed),

Advocating for massive government spending with little restraint admittedly deviates from the tenor of these columns, but the AI business is unlike any other before it. [emphasis misn] Having leaders acting as fervent advocates for the industry is crucial; resisting the coming technological tide is, as the Borg would say, futile.

The roughly 250 AI researchers who call Montreal home are not simply part of a niche industry. Quebec’s francophone character and Montreal’s multilingual citizenry are certainly factors favouring the development of language technology, but there’s ample opportunity for more ambitious endeavours with broader applications.

AI isn’t simply a technological breakthrough; it is the technological revolution. [emphasis mine] In the coming decades, modern computing will transform all industries, eliminating human inefficiencies and maximizing opportunities for innovation and growth — regardless of the ethical dilemmas that will inevitably arise.

“By 2020, we’ll have computers that are powerful enough to simulate the human brain,” said (in 2009) futurist Ray Kurzweil, author of The Singularity Is Near, a seminal 2006 book that has inspired a generation of AI technologists. Kurzweil’s projections are not science fiction but perhaps conservative, as some forms of AI already effectively replace many human cognitive functions. “By 2045, we’ll have expanded the intelligence of our human-machine civilization a billion-fold. That will be the singularity.”

The singularity concept, borrowed from physicists describing event horizons bordering matter-swallowing black holes in the cosmos, is the point of no return where human and machine intelligence will have completed their convergence. That’s when the machines “take over,” so to speak, and accelerate the development of civilization beyond traditional human understanding and capability.

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The claims I’ve highlighted in Delmar’s article have been made before for other technologies, “xxx is like no other business before’ and “it is a technological revolution.”  Also if you keep scrolling down to the bottom of the article, you’ll find Delmar is a ‘public relations consultant’ which, if you look at his LinkedIn profile, you’ll find means he’s a managing partner in a PR firm known as Provocateur.

Bertrand Marotte’s May 20, 2017 article for the Montreal Gazette offers less hyperbole along with additional detail about the Montréal scene (Note: Links have been removed),

It might seem like an ambitious goal, but key players in Montreal’s rapidly growing artificial-intelligence sector are intent on transforming the city into a Silicon Valley of AI.

Certainly, the flurry of activity these days indicates that AI in the city is on a roll. Impressive amounts of cash have been flowing into academia, public-private partnerships, research labs and startups active in AI in the Montreal area.

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…, researchers at Microsoft Corp. have successfully developed a computing system able to decipher conversational speech as accurately as humans do. The technology makes the same, or fewer, errors than professional transcribers and could be a huge boon to major users of transcription services like law firms and the courts.

Setting the goal of attaining the critical mass of a Silicon Valley is “a nice point of reference,” said tech entrepreneur Jean-François Gagné, co-founder and chief executive officer of Element AI, an artificial intelligence startup factory launched last year.

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The idea is to create a “fluid, dynamic ecosystem” in Montreal where AI research, startup, investment and commercialization activities all mesh productively together, said Gagné, who founded Element with researcher Nicolas Chapados and Université de Montréal deep learning pioneer Yoshua Bengio.

“Artificial intelligence is seen now as a strategic asset to governments and to corporations. The fight for resources is global,” he said.

The rise of Montreal — and rival Toronto — as AI hubs owes a lot to provincial and federal government funding.

Ottawa promised $213 million last September to fund AI and big data research at four Montreal post-secondary institutions. Quebec has earmarked $100 million over the next five years for the development of an AI “super-cluster” in the Montreal region.

The provincial government also created a 12-member blue-chip committee to develop a strategic plan to make Quebec an AI hub, co-chaired by Claridge Investments Ltd. CEO Pierre Boivin and Université de Montréal rector Guy Breton.

But private-sector money has also been flowing in, particularly from some of the established tech giants competing in an intense AI race for innovative breakthroughs and the best brains in the business.

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Montreal’s rich talent pool is a major reason Waterloo, Ont.-based language-recognition startup Maluuba decided to open a research lab in the city, said the company’s vice-president of product development, Mohamed Musbah.

“It’s been incredible so far. The work being done in this space is putting Montreal on a pedestal around the world,” he said.

Microsoft struck a deal this year to acquire Maluuba, which is working to crack one of the holy grails of deep learning: teaching machines to read like the human brain does. Among the company’s software developments are voice assistants for smartphones.

Maluuba has also partnered with an undisclosed auto manufacturer to develop speech recognition applications for vehicles. Voice recognition applied to cars can include such things as asking for a weather report or making remote requests for the vehicle to unlock itself.

Marotte’s Twitter profile describes him as a freelance writer, editor, and translator.