Risk Management for Artificial General Intelligence by Limited Liability Companies

The recent emergence of generative Artificial Intelligence (“AI”) and chatbots 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 technical 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 liability shields, vertical and horizontal, are proposed with LLCs and series LLCs as business entities.