Milei elaborated in a Financial Times op-ed about a new form of company that could operate without human staff, with AI agents or robots capable of making independent decisions in unpredictable settings. Several legal experts noted that Argentina would be the first nation to enact laws creating a category for AI-managed companies.
“We’re open for business,” Milei asserted, which drew criticism from Israeli historian Yuval Noah Harari, who cautioned that bestowing too much authority on AI could diminish corporate accountability.
However, corporate attorneys indicated that the situation is less groundbreaking than it appears. The proposed “automated company,” part of a broader effort to modernize and minimize bureaucratic hurdles in corporate law, would still need a human administrator to oversee its operations.
The bill also permits a company’s management to leverage AI for decision-making while requiring administrators to remain accountable for the outcomes.
“It would be too radical a step to eliminate human agency entirely,” stated Lawrence Cunningham, director of the Weinberg Center for Corporate Governance at the University of Delaware. Nonetheless, Cunningham described Milei’s initiative as bold.
“We’re not revolutionizing the world; rather, we’re acknowledging that a business could operate without a traditional HR department,” he said. “It’s merely the beginning.”
Diego Duprat, a law professor and co-author of the bill, mentioned that forms of automated companies already exist, citing cashier-less supermarkets supported by AI.
The legislation stipulates that companies would be liable for damages incurred by AI or algorithmic systems.
A spokesperson for the presidential office stated that there are currently no firms or investment commitments linked to the bill.
“What we are proposing is innovative, aimed at positioning Argentina as an appealing jurisdiction for automated businesses,” said the representative. “This initiative is crucial for creating better conditions to attract investments.”
Milei, who has successfully reduced inflation and sought to draw foreign investors through incentives, has frequently touted Argentina as a future AI hub, emphasizing Patagonia’s favorable climate and energy resources as ideal for data centers. In October, OpenAI and Sur Energy announced plans for a data center with an investment ceiling of $25 billion.
’PREDICTABLE FRAMEWORK’
Simply having legislation that highlights a company’s primary use of AI may entice investors, according to Maria Gisele Cano, a corporate attorney in Buenos Aires province. She has received numerous inquiries from entrepreneurs both locally and internationally regarding the proposal.
“These companies will enjoy a clearer and more predictable framework to operate within this environment,” she remarked.
Yonathan Arbel, a professor specializing in AI at the University of Alabama’s law school, stated that Argentina could achieve a “significant competitive edge” by fostering a conducive environment for AI businesses. He suggested that the bill would benefit from noting that AI agents should possess a digital ID for interactions with individuals and companies.
The proposal also facilitates the creation of decentralized autonomous organizations (DAOs) built on blockchain technology, enabling members to vote on proposals using digital tokens.
Argentina ranks as a leading cryptocurrency market in Latin America. Ricardo Mihura Estrada, former president of Bitcoin Argentina, commented that the bill’s requirement to identify and register token users poses a challenge for an industry founded on anonymity.
“I think the intention is good, but I foresee challenges in gaining acceptance within the blockchain realm,” he said.
The representative from the presidential office asserted that identifying token users is a basic security requirement, adding: “DAOs that prefer to maintain complete anonymity can continue to operate outside this framework, but will not access the legal benefits it provides.”
VIEW FROM SILICON VALLEY
Milei’s automated companies align with OpenAI CEO Sam Altman’s vision, who remarked in 2024 that AI will enable a company with a solo employee to attain a valuation of $1 billion.
Several U.S. states, including Texas and Utah, have established legal frameworks allowing businesses to experiment with AI, said Emerald Greywoode, a researcher at the Weinberg Center. These frameworks may include guidelines mandating that an AI business receives heightened human oversight during initial testing phases.
Experts claim current technology does not suffice for AI agents to make fully autonomous business decisions. However, Silicon Valley entrepreneurs are increasingly reallocating budgets from hiring staff to invest in AI computing power to execute similar tasks, noted Lan Xuezhao, managing partner at Basis Set Ventures, which invests in AI startups.
AI entrepreneurs are primarily focused on access to and costs related to computing power, chips, and energy, she mentioned, suggesting that lenient regulations may become appealing as regulatory agencies in the U.S. and Europe impose stricter governance around AI utilization.
Still, Lan expressed skepticism that Milei’s bill alone could transform Argentina into an AI powerhouse.
“The key factor is whether the talent chooses to move to Argentina,” she stated. “People will follow.”
