Artificial intelligence in the company law sphere : can robots eventually replace the board of directors?

Abstract

Despite the fact that we are living in a time in which people heavily rely on technology in their daily lives, many people still associate artificial intelligence (AI) with the futuristic world. When people think of AI, they conjure up images of a world full of robots that replace humans. The reality is that AI is already widely adopted throughout society, and people do not realize that they already rely a lot on AI on a daily basis, from using the facial recognition function to unlock their phones to asking Siri to play their favorite songs and Alexa to switch on their robot vacuum. Whether people are actually aware of their already heavy interaction with AI or not, it is a little surprising to know that many people still associate it with the future rather than the present. This dissertation explores the question of whether AI can replace human directors in a company. It analyses the disadvantages of the current corporate governance model and suggests how this can be improved if AI directors were introduced to the board. The author delves into the legal issues of legal capacity and accountability and discusses the practicable options for how AI can enter Maltese boardrooms. Due to the accountability hurdles associated with AI, the author also explores the possibility of replacing the human directors with a Decentralized Autonomous Organization (DAO). This study concludes that, up to the present time, the regulatory sphere when it comes to AI remains unclear, and in order for this emerging technology to enter the corporate boardroom, legislative interventions are required.