Artificial Inventiveness

A major element in innovation theory is creative destruction. Creative destruction puts the man in the center of responsible for initiating market shocks that forge economic cycles. His actions upset old orders and present conditions, thereafter creating a new reality. Artificial intelligence (“AI”) is one of the most recent inventions that scholars are predicting is going to change our lives in the decades to come. With the advancement of AI technology, we see processes that involve creative thinking and inventiveness done through machine learning and artificial intelligence. To name a few of these “made by AI” inventions are pharmaceutical products, musical compositions, manufacturing processes, art paintings, portraits creations, etc. Yet, one of the main elements of innovation theory is the human factor. In a similar manner, the government imposes taxation on labor, capital, or both combined. The entrepreneur— the man who gets things done is what drives the economy through creative destruction and is the "person" subject to taxation. In light of the AI revolution on the horizon, are innovation and tax theories a thing of the past— outdated doctrines that should be eulogized for defeating their own purpose? How can economic growth, fiscal, and innovation theories be reconciled without the entrepreneurial persona at their center? This paper surveys the underlining of central tax and innovation theories and provides a way to harmonize this catch 22. It argues that artificial inventiveness is not in tension with, or contrary to, innovation and tax theories but a natural progression and one of their important offshoots. It provides a new framework to “artificial inventiveness” within innovation theory and calls for legal adjustments to allow, rather than restrain, its development