BUENOS AIRES — Argentine President Javier Milei announced a congressional bill last month to create "non-human corporations" run by artificial intelligence (AI). The proposed companies would require human involvement despite being described as AI-run.

Milei described the new type of company in a Financial Times op-ed, stating that AI agents or robots would "exercise independent judgment in unpredictable environments" in the proposed companies. The reform is part of a comprehensive bill seeking to modernize and cut bureaucracy in corporate law. Milei declared, "We are open for business."

The "automated company" introduced in the proposed reform would be required to have a human administrator to oversee operations. The bill allows a company's administration to use AI for decision-making without exempting the administrators from supervising the outcome. The bill states that the company would be liable for damages caused by AI or algorithmic systems.

Diego Duprat, a law professor and co-author of the bill, referred to AI-supported cashier-less supermarkets as examples of automated companies that already exist in some forms. Milei has sought to attract foreign investors with incentives and has repeatedly pitched Argentina as a future AI hub, highlighting Patagonia's cold weather and energy supply as ideal for data centers.

A representative for the presidential spokesperson's office said that there are currently no companies or commitments of investment that are connected to the bill. The representative added, "What is happening is that we are proposing something innovative, aimed at making Argentina an attractive jurisdiction for the establishment of automated companies." The representative also said, "This project is key to creating better conditions for attracting investment."

The proposal allows for the creation of companies that are decentralized autonomous organizations (DAOs), built on blockchain, enabling members to vote on proposals with digital tokens. A representative for the presidential spokesperson's office said that identifying token users is a minimum security requirement. The representative added, "DAOs that prefer to maintain a completely anonymous structure may continue to operate outside this regime, but they will not gain access to the legal benefits it offers."

Why It Matters

Several legal experts said Argentina would become the first country to pass legislation creating a category for companies run by AI. The initiative seeks to attract foreign investment and modernize corporate law within the country. The emphasis on human oversight and corporate liability within the bill addresses potential concerns about accountability in AI operations.