The Jewish University in Berlin has developed a machine written quill* on parchment Sefer Torah. The report from the BBC takes it for granted that such a Sefer Torah is posul because it lacks the proper intention, comparing it to printing a Sefer Torah.
However, in this discussion of machine Matzah, Rabbi Yair Hoffman quotes several opinions (e.g. Rav Tzvi Pesach Frank - perhaps minority, but many rely on them in practice) that machine made Matza fulfills the requirement of the Matzah being for the sake of the Mitzvah.
Would those same opinions apply to a sefer Torah written by a machine, if operated by a Jew and done for the sake of the Mitzvah? Or is there a distinction to be made?
What other issues would there be in such a Torah besides proper intention in its writing?
* Looking again at the video, that isn't actually a quill, more like a modified fountain pen, but that seems to be rather technical. You could easily conceive of having the machine programmed to write a certain amount and stop to have its quill refilled, or even dip its own quill.