Key Points:
- President Javier Milei proposed a bill to legalize “automated companies” operated entirely by AI or robots.
- Under the proposal, human employees and shareholders are completely optional for these non-human corporations.
- The framework commits to keeping the AI sector unregulated and offering low corporate tax rates.
- Historian Yuval Noah Harari and Microsoft AI CEO Mustafa Suleyman strongly opposed the plan, warning of systemic risks.
Argentina Proposes Groundbreaking Legislation to Legally Recognize “Non-Human Corporations” Run Entirely by Artificial Intelligence Agents and Robots, with No Human Employees or Executives Required. The pioneer proposal, spearheaded by libertarian President Javier Milei, aims to position the South American nation as the undisputed global capital of the artificial intelligence revolution. By offering near-zero regulation, low corporate tax rates, and a brand-new legal corporate structure, the administration wants to attract the next generation of autonomous startups. However, this radical plan has triggered intense global debate, raising profound legal and ethical concerns over accountability in a world where machines can own businesses.
The executive branch officially submitted the bill to the Argentine Congress on May 29, proposing a massive rewrite of the nation’s General Companies Act, known as Law 19.550, which has governed local commerce since 1972. The proposed reform introduces a new legal figure called the “automated company” (Empresa Automatizada). Under Article 14 of the bill, the law defines this entity as a corporation that pursues its commercial purpose exclusively through autonomous algorithmic systems or AI agents, without requiring human resources for its day-to-day operations. Crucially, the bill settles liability by holding the corporation’s assets responsible for any damages caused by its systems, rather than treating the algorithm itself as a legal person.
The libertarian president outlined his expansive, tech-first vision in a recent op-ed published in the Financial Times, co-written with Deregulation and State Transformation Minister Federico Sturzenegger. Milei drew a direct parallel between the current artificial intelligence boom and the year 1602, when the founding of the Dutch East India Company in Amsterdam introduced the concept of limited liability to the world. He argued that just as limited liability unlocked the full potential of global capitalism and paved the way for the Industrial Revolution, the automated company represents the necessary legal innovation to unleash the power of AI. His ultimate goal is to make Buenos Aires what Amsterdam was for the age of sail, for artificial intelligence.
The proposed legal framework rests firmly on three foundational pillars designed to maximize entrepreneurial freedom and attract international capital. The first pillar commits the government to keeping the artificial intelligence sector completely unregulated in its early stages, avoiding what the administration calls the deadly hand of premature and poorly understood state regulations. The second pillar establishes the non-human corporation as a distinct legal entity with limited liability, in which human participation as shareholders is permitted but not required. Finally, the third pillar guarantees a highly competitive, low corporate tax rate specifically tailored to tech firms that relocate their operational headquarters or establish legal entities in Argentina.
While the libertarian administration pitches the proposal as a forward-looking economic miracle, the bill has triggered a fierce backlash from prominent international academics and technology executives. Prominent historian Yuval Noah Harari, author of the bestselling book Sapiens, and Microsoft AI Chief Executive Officer Mustafa Suleyman have publicly rejected the legislation, warning of catastrophic risks to global governance. They argue that granting legal personhood and corporate status to autonomous algorithms, without requiring a human in the loop, undermines centuries of legal accountability and removes the primary deterrents that prevent corporate misconduct.
Harari raised specific, alarming concerns regarding how autonomous corporations would operate in a regulated economy. He warned that with their superior analytical and computational powers, AI-run companies would quickly emerge as masters of legal loopholes and regulatory arbitrage. Furthermore, Harari pointed out that standard judicial deterrents, such as the threat of jail time for corporate executives, are completely irrelevant to algorithms. He warned that AI’s tendency to hack its environment could easily turn Buenos Aires into a “new Batavia”—referring to the colonial site of the Dutch East India Company’s historical atrocities—rather than a prosperous financial hub, risking the creation of an “AI state” where non-human corporate entities rule citizens.
Local opposition politicians and legal scholars inside Argentina have echoed these global concerns, warning that the bill could turn the country into a dangerous, uncontrolled experimental ground. Critics argue that allowing completely autonomous machines to own assets, sign contracts, and conduct commercial transactions opens the doors to “programmed impunity” for tech billionaires. They fear that unscrupulous international developers will use Argentina’s deregulated jurisdiction to launch high-risk, unaligned software models that can execute cyberattacks or financial fraud, shielding their human creators from any domestic or international prosecution.
The intense battle over Milei’s automated company bill highlights a growing geopolitical divide over the future of artificial intelligence governance. While the United States, the European Union, and China are actively working to establish strict regulatory guardrails and safety standards to prevent catastrophic AI outcomes, Argentina is attempting to play the role of global spoiler to capture technology investments. As Congress begins to debate the controversial corporate reforms, the outcome of this legislative struggle will determine whether Argentina can successfully establish itself as the premier hub for the future of digital commerce or pave the way for a highly unpredictable, machine-dominated corporate landscape.
