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92 Tenn. L. Rev. 169 (2024-2025)
Governing AI Systems through Corporate Theory

handle is hein.journals/tenn92 and id is 176 raw text is: GOVERNING SYSTEMS THROUGH CORPORATE THEORY PAUL WEITZEL* INTRODUCTION.....................................................................................170 I. AUTOMATION TECHNOLOGY IS ACCELERATING BUT GOVERNANCE CHALLENGES REMAIN......................................................................174 A. Increasing Automation and Use of Artificial Intelligence ................................................................................174 B. Challenges in AI Governance ..................................................181 II. CORPORATE THEORY AND Al GOVERNANCE ADDRESS THE SAME CHALLENGES....................................................................................183 A. Similarities Between AI Systems and Corporate Bodies .....................................................................................183 B. AI Scholars Regularly Look to Corporate Concepts for AI Challenges .................................................................................187 III. APPLICATION OF CORPORATE THEORY TO THE ALIGNMENT PROBLEM ......................................................................................190 A. The Alignment Problem Defined.............................................191 1. The End-User Alignment Problem ...................................192 2. The Societal Alignment Problem ......................................197 B. End-User Alignment: Agency Costs Theory ...........................199 1. The Theory of Agency Costs in Corporate Law ...............199 2. Agency Cost Theory and Artificial Intelligence...............201 C. End-User Alignment: Multitiered-Governance ......................209 1. Multitiered-Governance in Corporate Law......................209 2. Multitiered Governance Applied to Artificial Intelligence .............................................................................................212 D. Societal Alignment: Corporate Purpose .................................222 1. Societal Purpose in Corporate Theory..............................222 2. Corporate Purpose Applied to Artificial Intelligence .........................................................................232 * I am grateful for the many helpful comments from Gus Hurwitz, Carla Reyes, Colleen Medill, Elana Zeide, Eric Berger, Steve Willborn, Mailyn Fiddler, Blake Reid, Matthew Tokson, Gregory Dickinson, Samuel White, Noam Kolt, Sari Mazzurco Nathan Reitinger, Aileen Nielsen, Drew Simshaw, Michael Goodyear Adam Thimmesch, Jack Beard, Lt. Col. Ryan Carr, James Tierney, Richard Moberly, Jessica Shoemaker, John Parsi, Jamie Cooper, Rick Duncan, Kyle Langvardt, Brandon Johnson, Kevin Douglas, Zach Vacha and Mark Whaley and for the participants of the AALS Law & Technology Workshop and the Junior Scholars Conference at Northeastern University.

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