Accountability
I think the danger here is treating the algorithm itself as legal entity. Algorithms are specced, designed, implemented and maintained by people and I'd like to see one person - someone high up in the organization, not some poor dev - on the hook for its performance. I sort of understand that once AI is brought into the equation then its performance isn't neccessarily quantifiable in the same way that a process-charted deterministic algorithm* is, but that's no reason for people to wash their hands of outcomes that have real impacts on people's lives. If I can be held responsible for my mad dog's behaviour when she's out in public then I don't see why the chief exec of my local council can't be held responsible for the council's automatic assessment of benefits, grass cutting, bus routes, etc.
* https://flowingdata.com/2009/08/28/total-eclipse-of-the-heart-flowchart/
*(not deterministic, but I think that there's a calculable** number of random run throughs would get probably get it right, although probability was never my strong subject.)
**Left to the reader.