Comparative Analysis of Legal Personality of a Legal Entity and Artificial Intelligence in the Context of Its Impact on Corporate Governance

Yurii Zhornokui

Author information
https://orcid.org/0000-0001-9669-6062

Published: 03.12.2024

DOI: https://doi.org/10.69724/2786-8834-2024-3-3-98-112

Keywords: legal entity, natural person, artificial intelligence, legal personality, corporation, corporate governance, board member, technology

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Abstract

The article provides a comparative analysis of the legal doctrine regarding the granting of legal personality to a legal entity as one of the elements of its legal characteristics. Emphasis is placed on recent studies concerning the possibility of granting legal personality to artificial intelligence (AI). It is argued that the use of artificial intelligence in legal practice and doctrine does not yet justify its immediate recognition as possessing legal personality. It is substantiated that, even today, compared to the construction of a legal entity, this issue remains complex and problematic, which is one of the main reasons for the non-recognition of artificial intelligence as an independent subject of corporate relations, alongside natural and legal persons. The study highlights that artificial intelligence is one of the most advanced technologies of our time, yet it remains a system that merely imitates human cognitive behavior. Attention is drawn to the fact that AI technologies are actively used in corporate governance; however, there are currently no universally accepted mechanisms for their application.

To mitigate potential risks in corporate governance associated with the use of AI technologies, the article proposes developing mechanisms to require corporations to draft internal policies regulating the influence of AI on decision-making by board members of such legal entities. It also suggests defining the boundaries of AI technology application in decision-making processes by corporate board members at the legislative level. Furthermore, the article recommends creating norms that establish accountability for AI systems (e.g., to their developers, the legal entity owning the rights to such a system, etc.) and introducing mechanisms for liability in cases where harm is caused by AI systems.

How to Cite

In accordance with DSTU 8302:2015:
Zhornokui Y. Comparative Analysis of Legal Personality of a Legal Entity and Artificial Intelligence in the Context of Its Impact on Corporate Governance. Civilistic Platform. 2024. No. 3. P. 98–112. https://doi.org/10.69724/2786-8834-2024-3-3-98-112

According to the international style of APA:
Zhornokui, Y. (2024) Comparative analysis of legal Personality of a legal Entity and artificial Intelligence within the Impact on Corporate Governance. С. P. Journal, 3. https://doi.org/10.69724/2786-8834-2024-3-3-98-112 [in Ukrainian].

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