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AI & Legal Personality

Throughout history, humans have invented different tools for their assistance. Unlike the past tools, Artificial Intelligence (―Ai‖) is a modern-day innovation capable of self-learning and decision-making. Ai's revolutionary abilities of self-learning and decision making, coupled with its increasing use in our daily life, give rise to the questions of its regulation, accountability, and legal recognition.

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0% found this document useful (0 votes)
146 views6 pages

AI & Legal Personality

Throughout history, humans have invented different tools for their assistance. Unlike the past tools, Artificial Intelligence (―Ai‖) is a modern-day innovation capable of self-learning and decision-making. Ai's revolutionary abilities of self-learning and decision making, coupled with its increasing use in our daily life, give rise to the questions of its regulation, accountability, and legal recognition.

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Atif
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ARTIFICIAL INTELLIGENCE & LEGAL PERSONALITY

ATIF AZIZ

Barrister & Solicitor, Post- Graduate Scholar


Osgoode Hall Law School, York University, Canada
E-mail: [email protected]

Abstract - Throughout history, humans have invented different tools for their assistance. Unlike the past tools, Artificial
Intelligence (―Ai‖) is a modern-day innovation capable of self-learning and decision-making. Ai's revolutionary abilities of
self-learning and decision making, coupled with its increasing use in our daily life, give rise to the questions of its regulation,
accountability, and legal recognition. Research and legislation have not kept pace with the development of Ai systems to
address these questions. Granting legal personhood to the Ai systems is an approach to address these questions and Ai’s
unique capabilities. Analogies of other artificial personalities, especially that of Corporations, support the case of legal
personhood for Ai. Since the use of the Ai system is global and transcends any single jurisdiction, an international regulatory
framework for Ai legal personhood is required. Development of the Universally Accepted Artificial Intelligence Protocols
(―UAAIP‖) can serve as the guiding principle. Ai having a legal personality status will pave the way for an identifiable and
accountable legal entity.

Keywords - AI Legal Personality, AI Artificial Person, AI Accountability, AI Regulations.

I. INTRODUCTION for this purpose, it needs to be done in a just and


equitable way. Making the person aware of its
Humans are different from other living beings interaction with the Ai system and the basis of the
because of their superior intellectual capabilities. The decision is a start.
same intellectual abilities have led humans to develop
and innovate technology and tools that have helped Jacob Turner described Ai as a non-natural entity
humans achieve modern-day advancements. The having the ability to make choices by an evaluative
industrial revolution has led to general-purpose process. This ability of Ai and its immense
technologies that include steam engines, electricity, interjection in our lives gives rise to the question of
and combustion engine. These technologies propelled whether the Ai should be given the status of an
further innovations as the internal combustion engine artificial legal personality? This paper argues that an
has led to the development of cars, trucks, and Ai system capable of rendering decisions or outcomes
airplanes. that profoundly affect humans, regardless of its
intelligence level, should be given the status of
In contrast, Artificial Intelligence ("Ai") is unique artificial legal personality. Further, there should be a
from all the previous inventions or innovations as all bare minimum, internationally accepted mechanism,
other inventions have been more of a tool used by and protocol to effectively regulate Ai. It will enable
humans. On the other hand, Ai is not merely another the effective regulation of Ai while providing enough
tool but is capable of self-learning and intelligence. space for the innovation to continue. This paper
As an example, Ai, especially Machine learning, can outlines the structure that will provide the
improve its performance without human intervention. overarching principles and rules of Ai legal entities.
This self-learning phenomenon is in sharp contrast Nonetheless, giving legal personality to Ai from a
with all former technological advances. Whereas regulatory perspective is being advocated, and no
previously, humans would utilize what they have effort is being made to equate current or future Ai
learned to improve the tools & technologies, Ai can systems with humans.
self-learn and achieve superhuman performance.
Today, more than ever, Ai has become far more This paper presents a brief introduction and history of
effective and widely available. One may be surprised Ai. Various types of Ai and how they are impacting
by how many devices and applications in homes and our lives are discussed. Definitions of existing legal
offices, including mobile phones and computer personality are explored and compared with the Ai
systems, use Ai. It is being used in so many system. Further, the rights and obligations of such an
applications that people do not even know that it artificial legal personality are examined. The legal
exists. Therein lies the problem also, where people framework, regulatory environment, and duties of
are unaware of their interaction and cannot such Ai personalities are articulated. The alternative
understand the basis of Ai's output or decision. This perspective of not granting Ai legal personality till
characteristic of Ai based machine system has legal further evolution of Ai is investigated. Finally, the
and moral connotations because it enters a domain convergence of these ideas and reasoning that leads to
where it can dictate an outcome or decision granting Ai a legal personality is considered.
profoundly affecting humans. If an Ai system is used

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Artificial Intelligence & Legal Personality

II.HISTORY OF ARTIFICIAL INTELLIGENCE the general Ai system can learn and then solve any or
multiple problems presented to it, just like humans
Generally, the perception is that somehow Ai is a do.
recent phenomenon. Contrary to the general belief, Nevertheless, General Ai is still in its evolutionary
Ai's history, even in modern times, dates back to the stage. The future of General Ai is Super Ai, a
1950s. Alan Turing published a landmark paper in theoretical concept that one day Ai will surpass
1950 in which he speculated the possibility of human intelligence. Many scientists like Stephen
creating machines that will be able to think. In 1955, Hawking and tech-savvy executives like Elon Musk
Professor John McCarty of Dartmouth College coined have warned and considered Ai a threat to human
the term "Artificial Intelligence" as a science and existence.
engineering of making intelligent machines. By 1959 There are various sub-categories or types of Ai
MIT had set up an Ai Laboratory to spearhead the systems, such as machine learning, deep learning,
research on Ai. In 1965, Gordon Moore, co-founder expert systems, fuzzy logic, natural language
of Intel, authored an article in which he wrote that the processing, and robotics. Over time all Ai systems
number of components found in Integrated Circuits have become more refined and sophisticated. For
would double every year. This theory has become a example, Machine Learning systems with better
benchmark over the years and has been named algorithms have replaced old algorithm programs and
Moore's Law. It formed the basis for the beginning of outperformed humans in many tasks. Machine
the developmental loop; more computational power learning and deep learning have become successful
led to more intelligent and smaller devices with lower because of high computing power, better algorithms,
prices, leading to more intelligent and even smaller extensive data collection, and investments in its
devices with more computational power and storage. development by tech giants like Google, Amazon,
However, it was not until the 1970s and again in the and Facebook.
1980s that the first systems with the rule, frame, and
logic-based programs were developed. Also known as IV. LEGAL PERSONALITY
expert systems, they were the early example of Ai's
usefulness and successful implementations. By the From a sociological perspective, legal relationships
mid-1980s, the expert systems market was already are governed by either being a subject of law or the
above the billion-dollar mark. object of the law. Humans, for example, as persons,
Nevertheless, after a slowdown and reduced funding are subject to rights and obligations under the law. On
in the 1990s, Ai made a comeback in the 21st the other hand, objects, like goods or products, do not
century.With Machine Learning ("ML") taking the have rights or obligations per se. As such, subjects
lead, a process that helps the computers learn from are entitled to and are given the status of a legal
the data by themselves led to its utilization in person. Although every natural person is a legal
numerous fields, including health sciences, to personality, every legal personality is not necessarily
autonomously driven cars and flying drones. With the a natural person.
Ai system becoming more sophisticated, it did not An excellent example of this is the legal person status
come as a surprise when AlphaGo (a Google AI of a corporation. A corporation is a creation of a
system) won the Chinese Go game, a much more statute with similar rights and obligations as a legal
complex game than chess, from Go's human world person. A corporation can own, buy, and sell the
champion in 2017. A survey conducted in 2017 property. It can sue and be sued.
concluded that one in five companies had In limited instances, objects and animals, other than
incorporated Ai in some offering or processes. corporations, have also been accorded rights similar
Today, the uses of Ai based applications and to a legal person. This was illustrated when India's
programs number in millions. courts granted natural entities such as the river
Ganges and the Yamuna the status of a legal person.
III. TYPES OF ARTIFICIAL INTELLIGENCE All persons and legal personalities are subjects of law
with rights and obligations regardless of the
Not all Ai systems are created equal. Essentially, Ai jurisdiction.
can be divided into two main categories and various
sub-categories. Hence, persons and legal personalities can be
At a high level, Ai can be divided into Narrow Ai and classified as follows;
General Ai. Narrow Ai is a system or program
designed to solve a specific problem. In that sense, ●Person
most of the current day Ai systems are narrow Ai ▪ Humans (natural)
systems. A good example is a chess computer
program that has the sophistication of beating a ●Legal Personality
human in chess but cannot solve complex math ▪ Corporation (juridical/artificial person)
problems. This makes Narrow Ai more specialized ▪ Humans (natural person)
and better than humans at those tasks. By contrast, ▪ Limited cases for animals & objects

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Artificial Intelligence & Legal Personality

The table below further illustrates the comparison of dramatically change the process of judging and
various traits, rights, and obligations, between adjudication by either replacing, supporting, or
humans, animals, corporations, and Ai. supplementing the judicial role. This means that
there is a greater need for transparency and fairness.
Humans Animals Corp. AI An Ai system on its own, as a program, may not be
capable of being held responsible or liable for its
Intellectual
actions. These obligations can be fully recognized
Capacity limited 1
and attributed to an Ai system having a legal
Living personality status.
Beings
Human Factor
Rights limited proposed Further, an Ai system with a legal personality must
have a human constituent in it. Generally, laws are in
Obligations limited proposed place to hold humans accountable. If Ai systems are
operating autonomously, and there is no legal
personality ultimately responsible, there cannot be
As can be inferred from the table above, Ai's closest
any real accountability. Therefore, the Ai system
resemblance is another artificial personality, i.e.,
designer should be part of the legal entity. The Ai
corporations. Both Ai and corporations are capable of
system cannot conform to the rights and obligations
decision-making. Corporations exercise decision-
until there is a human component in it.
making through their directors and officers, whereas
Ai can provide outcomes/decisions based on its self-
V. ARTIFICIAL INTELLIGENCE AS A LEGAL
learning capacity or/and through a program's
PERSONALITY
predictive model. Both corporations and Ai are
artificial and not natural living beings. Corporations
This paper argues that an Ai system, whether Narrow
are subject to rights and obligations. This paper
or General, regardless of its mechanics being machine
proposes that an Ai system should be made subject to
learning, deep learning, or otherwise, is a right
similar rights and obligations. Whereas the
candidate for being regulated as an Artificial Legal
Corporation is made up of humans who operate it, the
Personality as long as it meets the following criteria.
Ai system is made by humans. Accordingly, both
Thus, an Ai system that;
have a human component that is an indispensable part
of the legal personality equation.
(i) is capable of learning on its own or through
supervised learning,
Rights (ii) is intelligent enough to render a decision or
As Ai becomes more sophisticated, it is becoming
processes an outcome
capable of producing material that is original
(iii) and that decision or outcome affect humans in a
authorship. Ai is composing music, writing articles,
significant manner is a system capable of being
drawing pictures, and much more. The question
given an Artificial Intelligence Legal Entity (the
inevitably turns to the ownership of such work. Who
"AiLE") status.
owns this work, the Ai system that produced it, the
designer of the Ai system, or the owner of the Ai
An AiLE so formed should include in its composition
system, and is that work protected just like original
the Ai program/system and the programmer cum
work created by humans?
designer (the "Developer") of the Ai program. The
In December of 2019, a district court in China held
Developer in the AiLE structure will have similar
that an article produced by Ai program Dreamwriter
status and responsibility as a director has in the
was entitled to copyright protection and could not be
Corporation. AiLE as a legal personality will serve as
copied without permission. As the Ai system's
identification and notice to the public in general that
original authorship work gets more recognition, the
they are interacting with Ai legal entity-based system
need for granting rights to the Ai system becomes
just as "Ltd", "LLC" etc., serves for corporations.
more imminent. Since a legal personality can only
That shall enable all the stakeholders to AiLE to the
own such rights, it supports the idea of giving Ai a
rights and obligations that shall flow from being a
legal personality status.
legal personality.
Obligations
Legal Framework
The role of Ai's work is expanding and is even visible
Today, Ai is being used in healthcare, transport,
in the field of law and justice. Ai is playing an
finance, retail, manufacturing, and education, thus
increasing role in the dispensation of justice in the
touching our lives daily. As the power, capabilities,
courtrooms. Changes are already underway that will
and sophistication of the Ai system continue to
expand, so is the public concern for the lack of
1
Intellectual capacity in the form of decision making is exercised regulations.
by the directors and officers of the corporations.

Proceedings of Academics World International Conference, Istanbul, Turkey, 06th -07th December 2021
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Artificial Intelligence & Legal Personality

As stated above, Ai systems that impact humans AiLE & its Responsibilities
should be granted a legal identification, but what Limited liability for AiLE does not and should not
would be the legal framework? mean no liability. The principal reason for granting
With traditional goods and services, only a certain the Ai system legal personality is to ensure the
percentage of large corporations are truly entity's proper legal identification. Resultantly, if
multinational with multiple countries' operations. something goes wrong, AiLE can be held responsible.
However, Ai systems have a far greater global reach. Nevertheless, limited liability should afford enough
Even a small Ai program embedded in a mobile App protection that will enable the technology to evolve.
might have far greater international reach and In essence, to provide "limited" limited liability. It is
consequences than a traditional company. important to note that wrongful decisions and
Nevertheless, the regulations for administering Ai are outcomes can never be avoided entirely without
lagging, as is the consensus on policies and abandoning the idea of machine autonomy. In this
procedures. context, a degree of limited liability protection will be
Hence, granting Ai systems Artificial Legal required for Ai legal entities.
Personality has to be complemented by an As Ai plays an ever-increasing role in society, there
international legal framework that has the flexibility is a greater need for Ai transparency and fairness that
of being administered and articulated locally. can be achieved by making the Ai system more
accountable. It means a balancing act between
Artificial Intelligence and Universal Protocols regulation and innovation. The EU's regulators are
In this context, there should be an agreement for the also cognizant of this need and have tried to address
universal protocols of bare minimum standards of some of these concerns in the General Data
fairness, transparency, and accountability for all the Protection Regulation (GDPR). GDPR Articles
Ai systems with Legal Entity status. These 22(1) has gone to the extent of allowing any data
Universally Accepted Artificial Intelligence Protocols subject (human) the right not to be a subject of a
(―UAAIP‖) can serve as the guiding principle for all decision based solely on automated processing if that
the AiLE. decision produces significant legal effects to that
subject.
Registration Forming AiLE will allow an entity to be identifiable
The registration of AiLE should be done locally, just and responsible, especially in AiLE interaction with
as the registration of a corporation. The compliance humans, which affects humans in a significant way.
mechanism should also be administered locally under The EU Commission's white paper on Ai highlighted
the umbrella of UAAIP. some vital issues for the Ai systems. The
Commission highlighted seven key requirements:
Audit
Periodic audits of AilE should be required to ensure a) Human Oversight
its compliance with the Universally Accepted b) Transparency
Artificial Intelligence Protocols. These audits will c) Accountability
have to be dynamic to ensure the observance of the d) Privacy & Data governance
protocols and that the Ai system is not making e) Fairness and non-discrimination
decisions or choices contrary to its mandate. For this, f) Safety and technical robustness
institutes and bodies should be established with the g) Societal and environmental wellbeing
charter to train Ai specialized auditors.
These elements are also important reasons why Ai
Other Aspects of the Legal Personality of Ai systems should be identifiable as a separate legal
Corporations, the closest artificial person to Ai, are entity. The role these elements will play in the AiLE
often regarded as entities that provide liability is discussed below.
protection. The idea is that corporations take risks,
with shareholders having the protection from the Transparency and Notice
liabilities, resulting in shareholders enrichment, and Identification of the Ai system is essential, and
ultimately it benefits the society, at least theoretically. people subject to its decision must be made aware of
However, other benefits and obligations of this fact. Transparency, in that sense, has two
corporations are virtually overlooked in the aspects. First, it must be disclosed that the decisions
discussion. Corporations can have immortality, or outcomes are a result of an Ai system undertaken
separate legal identification, ease of share transfer, either independently or under human supervision.
and have the rights & remedies available to all the Second, the Ai system should be able to explain the
stakeholders. Giving Ai the legal personality will decision process that is understandable by humans.
enable it to take advantage of all these benefits and There should not be any "black box" concept of
not just the limited liability. machine learning, where the system designer cannot
explain why Ai arrived at a specific decision.

Proceedings of Academics World International Conference, Istanbul, Turkey, 06th -07th December 2021
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Artificial Intelligence & Legal Personality

The Principles of Fundamental Justice dictate that Sometimes, the Turing Test, developed by Alan
every individual has a right to know the reasons for Turning in the 1950s, is incorrectly referenced in this
decisions that significantly impact them. Thus, an Ai context. The Turing test assesses a machine's ability
system with a legal personality can be held to mimic intelligent behaviour equivalent to or
responsible for fulfilling the duty of transparency. indistinguishable from humans. It was not developed
in the context of or for the purpose of legal
Accountability personhood.
If an Ai system does something or someone wrong,
resulting in a liability claim, it will require an This view has been further reinforced by the recent
accountability mechanism. However, if it is just an Ai development of Ai systems that suggest imitating
program, it is unclear who will ultimately be humans or their functions. The creation of Sophia, a
responsible. Would it be the Ai designer or the female robot that emulates the famous actress Audrey
product manufacturer with an embedded Ai system, Hepburn serves as an example of making Ai more
the end-user, or the Ai program itself? The answer is human-like. When the Kingdom of Saudi Arabia
to form an identifiable Ai legal entity that includes granted Sophia citizenship, many considered it a
the human role as a Developer alongside with Ai significant step towards recognizing the Ai system's
system. personhood. Similarly, an Ai system named Vital
was the first Ai system to become a member of the
Duty of Care & Diligence board of directors at a Hong Kong-based venture
The Developer in AiLE will owe a duty of care capital firm called Deep Knowledge Ventures DKV.
similar to that of the director of corporations. This Even with these recent Ai developments, various
duty of care will be owed to all the stakeholders of research scholars have pointed out that since Ai
AiLE, including the end-users and the humans who systems are not self-aware and do not understand the
interact and are subject to AiLE decisions and consequence of wrongdoing, there is no basis for
outcomes. In this context, the Developer should act granting them legal personhood.
deliberately and cautiously while aware of the Ai Ai is a novel innovation and requires novel ideas for
system's possible undesirable consequences. governance. Wright Brothers were unsuccessful in
Diligence would require the Developer to be creating an airplane by imitating the birds; instead,
cognizant of the Ai system's self-learning abilities they did so by understanding the flight's
and the possibility of unintended outcomes. aerodynamics. Birds and humans both achieve the
same goal of flying but through different approaches.
Fiduciary Duty Citizenship to Sophia, directorship to Vital, and
The Developer of the Ai system enjoys the level of Asimov laws of protection for robots have one
expertise that an ordinary user does not have. It puts element in common, i.e., the analogy with a natural
the Developer of the Ai system in a particular place person. It is self-evident that the Ai system or
of trust. Fiduciary duty will require the Developer to machines can never become a natural person.
act in good faith while protecting and promoting the Nevertheless, there is a need to regulate Ai systems,
interest of AiLE. and providing the Ai systems with a legal identity and
status will enable better regulations. Thus, granting
Duty of Fairness legal personhood should be viewed through the prism
The Developer of the Ai system will have the duty to of regulation instead of merely Ai's ability to emulate
ensure that the Ai system outcome and decisions are humans.
fair and non-discriminatory. Further, the Developer
will ensure that the Ai system's design does not have VII. CONCLUSION
a hidden bias either by the designer's intent or by the
data provided to train the Ai system. There will be a time when General Artificial
Intelligence and Super Artificial Intelligence are
VI. ALTERNATIVE PERSPECTIVE ON AI’S developed to a level where they will match humans'
LEGAL PERSONALITY capabilities or even surpass them. However, neither is
it necessary nor prudent to wait for Ai to develop
Many people think that the subject of granting a legal human-like capabilities for granting it a legal
personality to Ai is merely academic at the present personality. The Ai systems are already very
stage. Their reasoning is based on the view of sophisticated, impacting our lives, unlike any other
formulating a comparison between Ai and humans. tools invented by humans.
Personhood laws have also been presented in science One way forward can be to do nothing new and rely
fiction like the one authored by Isaac Asimov. Also on existing responsibilities for wrongdoing tied to
known as Asimov's Robot law, it proposes an product users or manufacturers. Nonetheless, it will
equitable solution for robots' protection and existence dodge the fundamental question of liability and
if they follow orders and do not harm humans. accountability.

Proceedings of Academics World International Conference, Istanbul, Turkey, 06th -07th December 2021
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Artificial Intelligence & Legal Personality

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