Can ChatGPT be CEO? Can a robot buy a house? Could an AI produce a Hollywood blockbuster? Professor Shawn Bayern thinks the answer to these questions is yes. Professor Bayern is a legal scholar and professor of law at Florida State University who has written a book called "Autonomous Organizations." In his book Professor Bayern outlines his argument that under today’s legal regime an AI could be setup to govern a Limited Liability Company, or LLC, the most popular type of business arrangement in the U.S. 

In today’s discussion we focus on AI, but Professor Bayern’s proposal also covers other kinds of non-traditional arrangements like Decentralized Autonomous Organizations, or DAOs, favored by many crypto enthusiasts.

Professor Bayern’s path to create an autonomous organization, also called an autonomous business entity, works like this. A human sets up a single-member LLC. The human then creates an operating agreement that dictates the decisions of the LLC are to be made by a software program, like an AI. The human then dissociates from the LLC leaving the AI in charge without internal human governance. The AI is then free to engage in any activities an LLC can legally undertake such as buying property or being party to a contract.

In our conversation we cover the basics of LLCs, some examples of what autonomous organizations might do in practice, corporate personhood, the details and limitations of Professor Payern’s plan, and how regulation and legislation still provides an opportunity for oversight. Along the way Shawn touches on some objections to his proposal and his response. I thought it was a fascinating conversation and I think you will too.

A full transcript of this episode is available on 96layers.ai.