Risk Management for Artificial General Intelligence by Limited Liability Companies

Mayumi J. Okuno, Hiroshi G. Okuno

Abstract:

The recent emergence of generative Artificial Intelligence (“AI”) and chat-
bots has significantly advanced the field of AI, making the prospect of achieving
Artificial General Intelligence (“AGI”) more feasible and tangible than ever before.
The recent revision of the EU AI Act also mentioned general-purpose AI systems
(GPAIS) as foundation models underlying any type of AI. Although various techni-
cal and ethical issues in realizing AGI systems have been discussed extensively, it
remains organizational issues in the risk management of AGI systems. This paper
proposes the limited liability company (LLC) for an AGI system as a business entity.
The research question investigated in this paper is: How do LLCs mitigate potential
risks of investors and enjoy benefits to promote AGI businesses? Two kinds of lia-
bility shields, vertical and horizontal, are proposed with LLCs and series LLCs as
business entities