Argentina proposes new legal framework for AI-driven automated companies

The administration of President Javier Milei is promoting a legislative reform to the General Corporations Law in Argentina that would introduce new legal entities: Automated Societies and Decentralized Autonomous Operating Organizations (DAOs). These figures would allow for the creation of companies that operate through autonomous algorithmic systems or artificial intelligence agents without the need for human employees for ordinary operations.

Driven by Deregulation Minister Federico Sturzenegger and based on academic work by Satellogic CEO Emiliano Kargieman, the proposal aims to modernize the business environment for a digitalized global economy. The framework includes proposed safeguards such as control bodies, insurance, a human committee held jointly responsible, and a mechanism to shut down systems if errors occur.

However, the initiative has faced significant criticism from experts who warn it could create a “laboratory of artificial impunity.” Critics argue that granting legal personality to autonomous AI entities is dangerous and poses risks regarding accountability and control, especially as international tech leaders express concern over the governance of autonomous systems.