Economics and Law of Artificial Intelligence

Artificial intelligence is becoming global and so, it is encompassing various industries and transforming commerce, which means that AI is having tremendous economic consequences akin to transformational technologies of the past, such as electrification, manufacturing, and information technology. Algorithmic decision-making presents multiple benefits to society and so, algorithms surpass human abilities, and the set of those tasks is escalating. AI and its usage have significant impact on human lives and society as a whole. AI involves a number of potential risks, such as opaque decision-making, gender-based or other kinds of discrimination, intrusion in private lives, or being used for criminal purposes.

The new era of information technologies is referring to the globalization of communication. The quick decrease of the communication costs enhanced the dealings among countries and is a vital foundation for the structure of a stronger universal civil society. In today’s technology-driven world, industry standardization, device interoperability, and product compatibility have turned out to be vital to advancing innovation and competition. The technologies and virtual places that represent cyberspace have been assimilated into the lives of people who accept the Internet as a tool for pursuing their common, real-world needs. E-government brings the government closer to citizens, defeating the barriers of bureaucracy, reducing corruption, and making decision-makers more reactive to people’s needs, which means that e-services of e-government are characterized by greater efficiency and transparency.

Corporate governance refers to the relationships among the different internal and external stakeholders implicated with the governance processes planned to assist a corporation in order to accomplish its objectives. DLT adoption by market participants will involve which means that there is a likelihood that new kinds of corporation stakeholders will appear such as the token holders. Hence, these new players will lead to alterations in the securities’ issuance and trading, in the shareholder’s involvement, but also to a reinforcement of the rights awarded to the different corporation stakeholders and so a new role will be recognized to corporate stakeholders. Public blockchain systems are “trust-minimized,” but “trust-shifting”—which indicates the need to trust in others than the officers and directors of a bona fide corporation and so in these systems that operate money, smart contracts, and possibly many other critical human practices which means that people continue to lead and make vital decisions on behalf of others.

AI is an approximation of human intelligence for the reason that it leaves open the prospect that AI will exceed human intelligence demonstrating a separate category of intelligence. Moreover, AI is interrelated to using computers to understand human intelligence, but it is not necessarily confined to methods that are biologically observable, which means that AI denotes the competence of a machine to imitate intelligent human behavior. The emerging digital lifeworld delivers resources for a new type of government, which means that the algorithmic government is about extracting facts, entities, concepts, and objects from vast repositories of data making those subjects and objects traceable and amenable to decision and action via the unavoidable power of inference. AAI systems host algorithmic governmentality encompassing governable subjects who function not as real people but rather as temporary aggregates of infra-personal data, which means that by numbering the system will control the globe via the deployment of statistical power encompassed by AAI systems.

Risk is a tool which makes possible the decision-maker to get knowledge about the event with destructive effects and so, the decision-maker via the analysis of risk makes the event more certain and obtaining control on it. Moreover, risk is the net negative influence of the exercise of vulnerability, regarding both the prospect and the effect of occurrence. Risk management is the procedure of identifying risk, assessing risk, and taking steps to moderate risk to a tolerable point. Furthermore, Risk sharing or risk controlling are central justifications for joining strategic alliances. Credit risk surfaces from the prospective that one participant to a financial tool is triggering a financial loss for the other participant by neglecting to discharge an obligation. Managing risk is one of the key objectives of companies operating globally and managers normally correlate risk with negative result.

Artificial intelligence has become a new engine for economic growth and as the central driving force of the new round of industrial reforms, artificial intelligence will further discharge the energy accumulated from prior technological revolutions and industrial alterations by generating new powerful engines to modernize economic activities such as production, distribution, exchange, and consumption. The decentralized nature of blockchain generates, the new concept of a token economy in which the community’s revenue is allocated to the actual content producers and service users who generate value. In addition, Blockchain is a key technology that enables new protocols for the establishment of a token economy in the future, leading to a new economic paradigm. Digital technologies are now turning the world upside down and so an ongoing series of technological developments have transformed economic and social life. The integration of AI agents into society has led to a different manner in which persons interact with each other, along with a new kind of direct interaction presented with AI agents, which are increasingly posed in society.

The digital economy is central part of transformation based on the diligence of cyberspace-based technologies and more recently the utilization of blockchain and AI technologies has pushed the digital economy to a different level. FDI is a source of private external finance to the host economy contributing to the state’s capital formation in the form of corporate tax revenues, permitting transfer of technology, and innovation and so tolerating the host economy to catch up with technological and managerial enhancements absorbed by the rest of the economy for fuller productivity influence. The whole analysis of the legal background of law concerning patents, copyrights, and trademarks shows a constant development of the legal regulation and enforcement of IPRs, which means a nonstop alteration of an index regarding the protection of IPR. Thus, IPR protection adds to their utility as a means of attracting FDI. The value of IPRs expressed by zekeuipr1 indexes >25% and <75% is the most significant in attracting FDI, which indicates that a good level of protection is essential for the significance of IPRs.

AI introduction meant that computer processors attained the miniaturization, sophistication, and power needed for AI to take off. Moreover, coding is labor intensive, making computing expensive, and slow but, on the other hand, computing has become so cheap that it is more proficient for a computer to write a program and so software can solve different problems. Furthermore, the development of open-source frameworks permits developers to work synergistically on the same platforms to construct the infrastructure required for AI-enabled devices to interoperate and so interconnected computer processors accomplishing parallel processing are materialized by artificial neural networks. Blockchain protocols run as organizations and presenting a new institutional governance technology of decentralization which means that essentially, as developers create these new institutions, they implement corporate models by resettling corporate law into the code and so making corporate governance rules an ordinary fit for an off-chain governance model.

Current boardroom technologies concentrate on the production and distribution of information that boards want to assist in their supervisory and strategic roles which mean that many of these technologies do not tender the advantages of AI systems themselves but instead engender the data which is the necessary lifeblood that AI needs. Advanced analytics based on AI algorithms categorize more complex patterns than is possible by human intervention, predominantly in the context of identifying fraud and money laundering in the financial services context. AI can be considered as property and so making the obligation of the clients, owners, or producers if the damage is caused because of it. The European Parliament passed a resolution proposing a form of legal personhood for Artificial Intelligence regardless that legal personality is not lightly conferred in any jurisdiction. As AI entities function at an increasing distance from their developers and owners, these AI entities confront conventional legal frameworks for attribution and liability. This author (Georgios I Zekos) considers that there is a need for attributing legal personhood to AI entities, in their present configuration, in an analogous way that of traditional corporations and the only difference is that of their virtual dimension of function because humans are creating AI entities and put them in operation and so the occurrence of AI entities put in function by other AI entities is for the future where it is supposed to have a legal personhood attributing liability for the original AI entities and be forced in an AI way by AI entities in an AI world.

Al technologies affect the center of private autonomy and its limits, the notion of a contract and its interpretation, the equilibrium of parties’ interests, the structure and means of enforcement, the effectiveness of legal and contractual remedies, and the vital attributes of the legal system of effectiveness, fairness, impartiality, and predictability. The increasing global investments in blockchain technology justify a progressive regulatory adaptation to the altering materiality and so, civil liability and the insurance sector are required to amend and govern an ever-more pressing techno-economic evolution. It is worth noting that adapting existing rules to deal with the technology will need an understanding of the various manners robots and humans respond to legal rules. A robot cannot make an instinctive judgment about the value of a human life. It is argued that the automation of legal services is a manner to enhance access to justice, diminish legal costs, and upgrade the rule of law, which means that these improvements are a democratization of law. There is a shifting role of artificial intelligence in the legal course.

First of all, it is worth mentioning here that the law’s struggle “to keep pace with technological developments” has always raised questions about intellectual property protections in emerging areas, which means that data-centric technologies are not an exception. Moreover, data-centric technologies have crossed national borders and attained adoption, even while patent law and copyright law have been slow to respond. It is worth noting that data-centric technologies have challenged the precise meanings of intellectual property doctrines, which did not envision such technological advancements challenging the scope of intellectual property doctrines. There is a growing sophistication of AI escalating the capability of AI to engage in knowledge work. Moreover, AI technologies infuse the role of a machine in the invention process, which means that the algorithms at the heart of artificial intelligence are playing a role in conception and reduction to practice of inventions.

Law can formally be considered as an institutionalization of practical discourse on social norms, and so modern law in Western civilizations is positive by articulating the will of a sovereign lawgiver, legalistic by applying to deviations from norms and formal. Public international law portrays itself as an instrument of universal moral values, of human rights, and of justice. There is a shift from international law to law and globalization providing a new incentive for erasing the artificial boundary between public and private in international law. It is characteristic that modern societies are far more interconnected than societies have ever been in the past, and so with the advances of technology and infrastructure, networks have quickly become an integral part of humans’ lives. AAI technological advance unavoidably is altering human and social behaviors demanding an adaptation of existing norms or the creation of specific rules if the law in force proves inadequate or unproductive. Essentially, AAI will be a cross-cutting happening necessitating not only the establishment of specific standards but also the reconsidering of the feasibility and effectiveness of preexisting rules. Zekos considers that at the verge of humanity losing earth’s control, there will be a war of humans against AAI machines by immobilizing the AAI intelligence and arriving at zero point for a restart.

It seems that advanced technology and Al acts and thinks like humans. AI is an exceptional information technology demanding the event of a machine that reacts and works as a mind of the human. Moreover, the upcoming of AAI systems lead to global governance challenging the conventional international law. It is worth mentioning here that AAI systems generate a clear-cut need for new sui generis rules to cope with new AAI situations or types of conduct. AAI will ignite morally problematic or politically or strategically disruptive forms of conduct by controlling the global population, deploying fully autonomous weapons forming cyber-warfare systems establishing stability in AAI global society via the AAI. In conclusion, Al has to be utilized by people for the good of the whole society and not being a weaponry on the hands of an elite to conquer earth against any costs of human life and prosperity.