AI Has Already Taken Over. It’s Called the Corporation

Futurists warning about the threats of AI are looking in the wrong place. Humanity is already facing an existential threat from an artificial intelligence we created hundreds of years ago. It’s called the Corporation.

AI has already taken over
AI has already taken over. It’s called The Corporation | © Wall Street Journal

Some of the leading thinkers of our time are unleashing a stream of warnings about the threat of artificial intelligence taking over from humans.  Earlier this month, Stephen Hawking predicted it could be “the worst event in the history of our civilization” unless we find a way to control its development. Billionaire Elon Musk has formed a company to try to keep humans one step ahead of what he sees as an existential AI threat.

The scenario that terrifies them is that, in spite of the best intentions, we might create a force more powerful than all of humanity with a value system that doesn’t necessarily incorporate human welfare. Once it reaches a critical mass, this force could take over the world, control human activity, and essentially suck all life out of the earth while it optimizes for its own ends. Prominent futurist Nick Bostrom gives an example of a superintelligence designed with the goal of manufacturing paperclips that transforms the entire earth into one gigantic paperclip manufacturing facility.

These futurists are right to voice their concerns, but they’re missing the fact that humans have already created a force that is well on its way to devouring both humanity and the earth in just the way they fear. It’s called the Corporation.

“Government by corporations”

When corporations were first formed back in the seventeenth century, their inventors—just like modern software engineers—acted with what they believed were good intentions. The first corporate charters were simply designed to limit an investor’s liability to the amount of their investment, thus encouraging them to finance risky expeditions to India and Southeast Asia. However, an unintended consequence soon emerged, known as moral hazard: with the potential upside greater than the downside, reckless behavior ensued, leading to a series of spectacular frauds and a market crash that resulted in corporations being temporarily banned in England in 1720.

Thomas Jefferson and other leaders of the United States, aware of the English experience, were deeply suspicious of corporations, giving them limited charters with tightly constrained powers. However, during the turmoil of the Civil War, industrialists took advantage of the disarray, leveraging widespread political corruption to expand their influence. “This is a government of the people, by the people, and for the people no longer. It is a government of corporations, by corporations, and for corporations,” lamented Rutherford Hayes who became President in 1877.

Corporations took full advantage of their new-found dominance, influencing state legislatures to issue charters in perpetuity giving them the right to do anything not explicitly prohibited by law. The tipping point in their path to domination came in 1886 when the Supreme Court designated corporations as “persons” entitled to the protections of the Fourteenth Amendment, which had been passed to give equal rights to former slaves enfranchised after the Civil War. Since then, corporate dominance has only been further enhanced by law, culminating in the notorious Citizen United case of 2010, which lifted restrictions on political spending by corporations in elections.

Sociopaths with global reach

Corporations, just like a potential runaway AI, have no intrinsic interest in human welfare. They are legal constructions: abstract entities designed with the ultimate goal of maximizing financial returns for their investors above all else. If corporations were in fact real persons, they would be sociopaths, completely lacking the ability for empathy that is a crucial element of normal human behavior. Unlike humans, however, corporations are theoretically immortal, cannot be put in prison, and the larger multinationals are not constrained by the laws of any individual country.

With the incalculable advantage of their superhuman powers, corporations have literally taken over the world. They have grown so massive that an astonishing sixty-nine of the largest hundred economies in the world are not nation states but corporate entities.

Corporations have been able to use their transnational powers to dictate their own terms to virtually any country in the world. As a result of decades of globalization, corporations can exploit the free movement of capital to build factories in nations with the weakest labor unions, or locate polluting plants in countries with lax environmental laws, basing their decisions solely on maximizing returns for their shareholders. Governments compete with each other to make their nations the most attractive for corporate investment.

Corporations wield their vast powers to control the minds of consumers, enthralling them into a state of perpetual consumption. In the early twentieth century, Edward Bernays, a mastermind of corporate empowerment, boldly stated his game plan as “the conscious and intelligent manipulation of the organized habits and opinions of the masses.” He declared ominously that “those who manipulate this unseen mechanism of society constitute an invisible government that is the true ruling power of this country.” The sinister words of Wayne Chilicki, chief executive of General Mills, show how Bernays’ vision has been perpetuated: “When it comes to targeting kid consumers, we at General Mills… believe in getting them early and having them for life.”

General Mills
General Mills cereals: they believe in “getting kid consumers early and having them for life.”

The result of this corporate takeover of humanity is a world careening out of control, where nature is mercilessly ransacked to extract the raw materials required to increase shareholder value in a vortex of perpetual economic growth, without regard to the quality of human life and with no concern for the welfare of future generations.

Corporate takeover of global governance

Instead of being pilloried for their vast destruction, those who dedicate themselves to their corporate overlords are richly rewarded and elevated to positions of even greater power and prestige. ExxonMobil, for example, has been exposed as having lied shamelessly about climate change, knowing for decades about its consequences and yet deliberately concealing the facts, thus condemning present and future generations to havoc. Instead of facing jail time, the CEO during much of this period, Rex Tillerson, is now the U.S. Secretary of State, overseeing the global relationships of the most powerful country in the world.

In fact, the current U.S. cabinet represents the most complete takeover yet of the U.S. government by corporations, with nearly 70% of top administration jobs filled by corporate executives. In the words of Robert Weissman, president of Public Citizen, “In the Trump administration, auto industry lobbyists are setting transportation policy, Boeing has a top perch at the Department of Defense, Wall Street is in control of financial policy and regulatory agencies, and corporate defense lawyers staff the key positions in the Justice Department.”

bn-re808_1tilld_gr_20161213054402
Instead of facing jail time for ExxonMobil’s lies about climate change, Rex Tillerson (left) is now the U.S. Secretary of State

Corporations are inserting themselves into international agreements, so they can further their interests even more effectively. At the 2015 World Economic Forum in Davos, a new Global Redesign Initiative set out an agenda for multinational corporations to engage directly in global governance. The UN’s Sustainable Development Goals, proudly announced in 2015 as a vision to reduce poverty, adopted their approach by inviting corporations to a seat at its table to impact UN policy, while calling for further globalization. Fossil fuel companies have infiltrated the annual global COP meetings on climate change, ensuring they can compromise any actions that might hurt them, even as the world faces the threat of climate catastrophe.

The takeover of global governance by multinational corporations has permitted them to undermine human welfare everywhere in the pursuit of profit. Nestlé remorselessly buys control of rural communities’ groundwater reservoirs to sell as bottled water, leaving them to foot the bill for environmental cleanup, with the result that in countries such as Columbia sugary bottled drinks are frequently cheaper than plain water. As a result of the chemicals sold by global agribusiness companies such as Cargill and Monsanto, it’s been estimated by UN officials that the world’s topsoil can only support about sixty more years of harvests. In these cases, and countless others like them, humans and the earth alike are mere fodder for the insatiable appetite of an amoral, inhuman intelligence run amok.

There is an alternative

The corporate takeover of humanity is so all-encompassing that it’s difficult to visualize any other possible global system. Alternatives do, however, exist. Around the world, worker-owned cooperatives have demonstrated that they can be as effective as corporations—or more so—without pursuing shareholder wealth as their primary consideration. The Mondragon cooperative in Spain, with revenues exceeding €12 billion, shows how this form of organization can efficiently scale.

Mondragon
The success of Mondragon, among others, proves there are scalable alternatives to the corporate domination of humanity

There are also structural changes that can be made to corporations to realign their values system with human welfare. Corporate charters can be amended to optimize for a triple bottom line of social, environmental, and financial outcomes (the so-called “triple Ps” of people, planet, and profit.) A “beneficial” or B-Corp certification, which holds companies to social and environmental performance standards, is becoming more widely adopted and is now held by over 2,000 corporations in over fifty countries around the world.

Ultimately, if we are stop this force from completely taking over humanity, these alternative approaches need to be codified into our national and international governance. Imagine a world where corporate charters were only granted if they adopted a triple bottom line, and where shareholder lawsuits threatened every time a company broke one of its own social and environmental standards. Until that happens, it may be that the “worst event in the history of our civilization” is not the future development of modern AI, but the decision by a group of 17th century politicians to unleash the power of the Corporation on an unsuspecting humanity.

 

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4 thoughts on “AI Has Already Taken Over. It’s Called the Corporation

  1. Interesting and thought provoking angle on corporations. One question immediately comes to mind: If corporations are not people (and if they were, they would be sociopaths, lacking the ability for empathy) what does this say about the very human representatives of corporations, such as those currently filling senior posts in the US government? These are humans, not corporations or constructs. The analogy doesn’t extend far enough to explain this.

    Also, the recommendations at the end seem far too conservative to me. Tweaking things is not enough. A corporation with a triple bottom line isn’t really a solution, I think we need to go much further.

    Liked by 1 person

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