Argentina’s ambitious proposal to create a new legal category for AI-operated companies has generated widespread global attention after President Javier Milei announced plans to introduce legislation allowing so-called “non-human corporations.” While the proposal initially raised concerns that businesses could operate entirely without people, legal experts have clarified that the plan still requires significant human oversight and accountability.
The proposed legislation forms part of a broader corporate reform package aimed at modernising Argentina’s business environment, reducing bureaucracy and attracting global investment. If approved, Argentina would become the first country in the world to establish a dedicated legal framework for companies primarily operated by artificial intelligence systems, making it a potentially significant milestone in the evolution of AI-driven businesses.
President Milei described the proposal as an opportunity to position Argentina at the forefront of technological innovation. In a recent opinion piece, he argued that AI agents and autonomous systems could independently perform complex business functions and make decisions in unpredictable environments. The announcement, however, also triggered criticism from several technology experts and academics who warned that allowing artificial intelligence to manage companies without clear accountability could create serious legal and ethical challenges.
Among the critics was renowned historian and author Yuval Noah Harari, who cautioned that granting excessive authority to AI systems could weaken corporate responsibility and make it more difficult to determine accountability when businesses make harmful or unlawful decisions. The debate has since intensified as governments worldwide continue exploring appropriate regulations for rapidly advancing AI technologies.
Despite the bold language surrounding the proposal, corporate lawyers involved in drafting the legislation say the reform is far less radical than it initially appears. Under the proposed framework, every automated company would still be legally required to appoint at least one human administrator responsible for supervising operations and overseeing all decisions generated by artificial intelligence systems. Company executives would remain legally accountable for the outcomes of AI-assisted decision-making and could not shift responsibility to algorithms or autonomous software.
Legal experts believe the proposal represents an evolutionary rather than revolutionary step. Lawrence Cunningham, Director of the Weinberg Center for Corporate Governance at the University of Delaware, described the legislation as bold but emphasised that completely eliminating human involvement would currently be unrealistic. According to Cunningham, the proposal acknowledges that AI can significantly reduce operational staffing requirements while recognising that businesses still need human judgment, oversight and legal accountability.
The bill’s co-author, Diego Duprat, argued that elements of AI-operated businesses already exist today, pointing to cashier-less supermarkets and automated retail systems where artificial intelligence manages large portions of day-to-day operations. Under the proposed law, companies would also remain legally liable for any damages or losses caused by AI systems, ensuring that responsibility ultimately rests with human-controlled legal entities rather than the technology itself.
The proposal also seeks to position Argentina as an attractive destination for AI investment. President Milei has repeatedly promoted the country as a future global AI hub, highlighting Patagonia’s cool climate and abundant energy resources as ideal conditions for building large-scale data centres. Last year, OpenAI and Sur Energy announced plans to develop a major data centre project in Argentina with investments reportedly reaching $25 billion, reinforcing the country’s ambitions to become a regional leader in artificial intelligence infrastructure.
Another notable feature of the legislation is the introduction of legal recognition for Decentralized Autonomous Organizations (DAOs) operating on blockchain technology. These organisations allow members to vote using digital tokens rather than traditional corporate governance structures. However, the proposal requires token holders participating in registered DAOs to verify their identities, a provision that has drawn criticism from parts of the cryptocurrency industry, where anonymity remains a core principle.
Technology investors have generally welcomed Argentina’s efforts to establish a flexible regulatory environment for AI businesses. Some experts believe clear legal recognition of AI-driven companies could encourage innovation and attract international entrepreneurs seeking jurisdictions with lighter regulatory frameworks. However, industry leaders caution that legislation alone will not be enough to transform Argentina into a global AI powerhouse. Experts argue that long-term success will ultimately depend on the country’s ability to attract world-class talent, secure computing infrastructure, ensure access to advanced semiconductor chips and maintain affordable energy supplies for large-scale AI development.
As governments around the world continue debating how artificial intelligence should be regulated, Argentina’s proposal may become one of the first major real-world tests of how AI-powered businesses can operate within existing legal and corporate governance systems—while ensuring that humans remain firmly responsible for the decisions that matter most.
Disclaimer: This report has been editorially prepared using publicly available information and agency inputs. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify critical information from official sources.
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