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While working on my previous book on judgement-proof robots in 2020 I have never imagined or predicted a fascinating technological progress that has materialized since then. Several of my good friends while reading my book on robots even told me that it sounds more like science fiction than a real legal analysis. The technological revolution that happened in November 2023 when ChatGPT debuted (beginning the breakout year for realistic artificial intelligence) with the launch of the generative AI proved me right. With the launch of OpenAI in November 2023, primarily through ChatGPT and their GPT series of LLMs, generative AI have really transformed the world. We are indeed leaving in a new era where general-purpose or superintelligent AI is in sight and can happen at any time. Thus, this second follow-up book reflects this unbelievable technological progress and also our current EU-lead regulatory attempt to regulate the technology ex ante, when it is still feasible to do it and before the technology escapes our human control. This book is again about the future of unimaginable progress where the wildest dreams of visionary scientists materialize and represents an extension of my previous book on judgement-proof robots. It is about a futuristic world in which human-like, generative artificial intelligence serves as human compatible and, among other things, acts in its own will. It is also about unprecedented and currently uncontemplated hazards that such generative AI and similar human-level-intelligent artificial intelligence may impose on human societies. However, this book is not about a generative AI that is conscious, since almost no one working in the AI field is attempting to make machines conscious. Famous Hollywood movies like “I robot” where a god detective Spooner—aliasWill Smith— chases hordes of evil and conscious, robots attempting to enslave humans are actually missing the point. It is competence, and not consciousness, that matters. Namely, if one writes an algorithm that when running will form and carry out a plan which will result in significant damages to life or property, unforeseeable hazards or even in the destruction of a human race, then it is not about the AI’s consciousness but about its competence and capacity. Of course, no one can predict exactly how the generative AI will develop but undoubtedly it is becoming a dominant technology of our time. Thus, policymakers and lawmakers must prepare now for the possibility that generative AI might become also human-like-intelligent and that its actions might cause severe damages and hazards.This book is thus an attempt to provide a law and economics treatment of such uncontemplated development and should be regarded as a contribution to lawmakers and legal practitioners around the world to learn how to avoid the risks, mitigate potential hazards and to offer a set of regulatory tools that could be employed in ex ante controlling, regulating the potentially biggest event in human history. This book could not have been made without the enthusiastic support of my parents and my loved ones. My special gratitude goes also to Professor Gerrit De Geest from Washington University in St. Louis for his extraordinary, fascinating, inspiring and path-breaking discussions and lectures which I have been privileged to follow and admire.