{"id":15301,"date":"2026-06-19T13:30:19","date_gmt":"2026-06-19T13:30:19","guid":{"rendered":"https:\/\/vila.es\/?p=15301"},"modified":"2026-06-19T13:30:19","modified_gmt":"2026-06-19T13:30:19","slug":"corporations-run-by-artificial-intelligence-the-argentinian-initiative","status":"publish","type":"post","link":"https:\/\/vila.es\/en\/technology\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\/","title":{"rendered":"CORPORATIONS RUN BY ARTIFICIAL INTELLIGENCE: THE ARGENTINIAN INITIATIVE"},"content":{"rendered":"

In an article published in the Financial Times<\/em> on the 4th<\/sup> of June 2026, the president of Argentina, Javier Milei, openly criticised the precedent set by the US court ruling Sarcuni v. bZx DAO (decentralised autonomous organisation built on blockchain technology), which defined DAOs as equivalent to a community of property, depriving their members of the limited liability status enjoyed by partners or shareholders of a corporation. In other words, it denied these organisations the status of corporation, precisely because of their automated organisation and administration.<\/p>\n

Given the unstoppable rise of artificial intelligence as a tool in corporate governance and in the market more broadly, Milei proposes adapting the current corporate legal framework to this reality by introducing the concept of automated companies. The government has submitted a draft bill for the comprehensive reform of company law to the Argentine Congress. Among other interesting developments\u2013like the abolition of general partnerships, simple limited partnerships, partnerships limited by shares, and capital-and-industry partnerships\u2013it creates two new types of company: automated companies and the so-called Decentralised Autonomous Organisation (DAO). As will be explained below, he does not advocate for granting artificial intelligence its own legal personality, but rather, for creating traditional companies that will incorporate artificial intelligence as the sole organiser and director of its commercial life, a role which, until now, has been reserved for human decision-making.<\/p>\n

A DAO is understood to mean a company that carries out its corporate purpose and is managed by autonomous algorithmic systems or artificially intelligent agents, without the necessary involvement of employees or directors or any other type of human operator. According to the draft bill, these companies must present themselves as \u201cAUTOMATED\u201d and are liable to third parties only up to the value of their assets. This includes any damage caused by their technological operating systems. Its operations are governed by a \u201cprotocol\u201d, in the sense of technical and management rules, regardless of the technology used. Its capital may be divided into, and represented by, tokens (cryptographic tokens) recorded on distributed ledger networks. Tokens may be transferred by registration on the network or technological system chosen by the company (at present, this would normally be by blockchain technology), and without any requirement for formal notice. However, legal representation must rest with one or more natural persons, which ultimately provides the only remaining link between this digital legal entity and the human dimension. This natural person, acting as promoter, serves as the legal representative for all acts that require human intervention, such as the incorporation of the company, and also bears unlimited corporate liability.<\/p>\n

It should be noted that these companies do have legal personality, but this should not be confused with granting legal personality to the artificial intelligence that manages and runs them. The company\u2019s day-to-day operations are carried out by an intelligent computer system (AI), with no human involvement in its day-to-day management, and it is therefore capable of representing the company in legal and commercial dealings. However, this is not a new category of legal person, but rather, a new way for a commercial company to operate through autonomous algorithmic systems without giving rise to a new ontological reality. The draft bill states that the articles of association must identify its partners and, particularly in the case of DAOs, a permanent link has to be maintained between tokens and their holders. It is important to point this out because there is some confusion about what DAOs and automated companies actually are. The substantive point is that, although these are commercial companies that retain traditional legal personality, their management does not require human intervention because it is automated.<\/p>\n

On the other hand, the powers of automated companies are not the same as those of traditional commercial companies. The Argentine draft bill expressly prohibits them from acting as administrators in other companies, a highly significant provision, as it reflects the legislator\u2019s recognition of the risk inherent in vesting all decision-making power in an algorithmic creation. As for liability, the new automated companies and DAOs remain liable to creditors out of their assets, just as traditional companies do, and in certain circumstances, the natural persons registered as responsible for the companies may also be liable.<\/p>\n

But, what is truly notable about these new companies is the source of the decisions made and their binding effect on the company, since that source lies not in human will but in an algorithmic system operating autonomously from human beings, even though, in the end, humans remain responsible for any failures and harm caused by the technological system. Human beings are assigned a duty of care in configuring and supervising the algorithmic system that runs the company, as well as responsibility for the outcome of its operations. The human being is not directly responsible for the actions taken by the autonomous company, but remains liable together with the company itself, therefore making it important to stress that decisions taken by the artificial intelligence carry a dimension of liability that does not stop at the corporate level, but may extend to the level of shareholders or token holders \u2013 for example, when the autonomous company is used fraudulently or maliciously, or where a decision taken by the algorithmic system causes harm to third parties and the company\u2019s assets are insufficient to cover that harm.<\/p>\n

In essence, automated management amounts to a delegation of powers which, instead of being vested in a management body (and proxies) made up of natural persons, is entrusted to an intelligent technological system. To compensate for this, ultimate liability is placed on the natural persons identified as the company\u2019s \u201clegal representatives\u201d who, although not directors per se, act as guarantors for damage caused by the delegated technological system. This safety net makes it possible to say that the AI or management system is neither, nor can it be understood as, liable in itself, since these are entities without their own legal personality; by contrast, the company and its legal representative are, and the latter must be identified both at incorporation and throughout the life of the automated company or the DAO.<\/p>\n

It is worth recalling that the EU Directive 2024\/2853 of 23 October 2024 on liability for damage caused by defective products does not confer on artificial intelligence any specific liability status for harm caused by its operation, but instead redirects liability to its creators, implementers, and operators, who are themselves natural or legal persons.<\/p>\n

In short, the Argentine approach to the implementation of AI in companies with share capital is not so much a radical break as a structured way of bringing technology into corporate management, without granting AI legal personality and while preserving the liability regime vis-\u00e0-vis third parties, first against the company\u2019s assets and second, in certain circumstances, against the assets of the DAO\u2019s shareholder or promoter, as the case may be. These are not companies that come into being and act on their own, but rather, their incorporation requires natural persons, whether shareholders or token holders, and the conduct of their activities requires legal representatives who bear ultimate responsibility. What makes the Argentine proposal new lies in two main features: first, the delegation of powers to an algorithmic system rather than to a natural person, a delegation that excludes the human factor from the operation of the autonomous company; and second, the fact that those powers enable the algorithmic system to bind the legal person represented even though the decisions taken by the system do not originate immediately in an act of human volition.<\/p>\n

Human involvement still exists in autonomous companies, but not in the same way as in traditional ones. Management no longer belongs to a human being but to artificial intelligence, thereby breaking with the conventional premise that a person is answerable for their own acts.<\/p>\n

Harmful acts committed by the cybernetic manager (artificial intelligence) are passed on to the company and, ultimately, to its promoters or shareholders, even though they had no part in the decision that gave rise to the damage. Their liability is secondary in nature and is not based on the authorship of the harmful act, but on a statutory duty. In other words, the obligation arises from the role imposed by law on the registered representatives of autonomous companies: to ensure the proper functioning of the algorithmic system, which makes them liable for the system\u2019s failures and the damage it causes. This liability regime may best be illustrated by the example of self-driving taxis. The owner of the taxi does not drive the vehicle, nor does a natural person dependent on them (the vehicle is driven by its algorithmic system), but the owner is responsible for the proper functioning of the system and for any harm eventually caused to the passenger by a system failure.<\/p>\n

Finally, it should be remembered that the question of granting legal personality to bots, in the broad sense of the term, has been addressed since artificial intelligence reached a sufficient level of technological development to allow it to act as an autonomous agent. The European Parliament\u2019s Committee on Legal Affairs\u2019 report in May 2016 addressed the possibility of creating a legal status of \u201celectronic personhood\u201d for cutting-edge bots of high technical sophistication and autonomous character, granting them specific rights and obligations. The proposal was ultimately dropped in light of criticism that this kind of legal person would dilute the principle of liability. The difference with the Argentine proposal is clear: while the Parliament\u2019s proposal was aimed at creating a new legal person endowed with rights and obligations, the Argentine autonomous company has no such ambition; it simply presents artificial intelligence as a delegated agent of corporate management, without human intervention, and frames a liability mechanism in which responsibility ultimately rests with natural or legal persons.<\/p>\n

The Argentine initiative is likely to have knock-on effects in other jurisdictions, both by attracting investment and business ventures that do not fit within the legal frameworks of their countries of origin and may have no option but to turn to Argentina, and by helping to keep pace with competition among states, in which the legislative framework plays a vital role. Argentina\u2019s experience will serve as an excellent testing ground and provide highly valuable insight into the effects of automated companies on legal and commercial dealings, before the model is incorporated into the legislation of other countries. Market realities and the practical cases arising from their operation will in due course show the legislator what adjustments should be made to the original model.<\/p>\n

 <\/p>\n

Eduardo Vil\u00e1<\/p>\n

Vil\u00e1 Abogados<\/p>\n

 <\/p>\n

For more information, please contact:<\/p>\n

va@vila.es<\/p>\n

 <\/p>\n

19th<\/sup> of June 2026<\/p>\n","protected":false},"excerpt":{"rendered":"

In an article published in the Financial Times on the 4th of June 2026, the president of Argentina, Javier Milei, openly criticised the precedent set by the US court ruling Sarcuni v. bZx DAO (decentralised autonomous organisation built on blockchain technology), which defined DAOs as equivalent to a community of property, depriving their members of […]<\/p>\n","protected":false},"author":4,"featured_media":4738,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73,87],"tags":[],"class_list":["post-15301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate","category-technology"],"yoast_head":"\nCORPORATIONS RUN BY ARTIFICIAL INTELLIGENCE: THE ARGENTINIAN INITIATIVE - Vil\u00e1 Abogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/vila.es\/en\/technology\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CORPORATIONS RUN BY ARTIFICIAL INTELLIGENCE: THE ARGENTINIAN INITIATIVE - Vil\u00e1 Abogados\" \/>\n<meta property=\"og:description\" content=\"In an article published in the Financial Times on the 4th of June 2026, the president of Argentina, Javier Milei, openly criticised the precedent set by the US court ruling Sarcuni v. bZx DAO (decentralised autonomous organisation built on blockchain technology), which defined DAOs as equivalent to a community of property, depriving their members of [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/vila.es\/en\/technology\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\/\" \/>\n<meta property=\"og:site_name\" content=\"Vil\u00e1 Abogados\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-19T13:30:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/vila.es\/wp-content\/uploads\/2020\/07\/tecnologia.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"669\" \/>\n\t<meta property=\"og:image:height\" content=\"272\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Vil\u00e1 Abogados\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Vil\u00e1 Abogados\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/vila.es\\\/en\\\/technology\\\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/vila.es\\\/en\\\/technology\\\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\\\/\"},\"author\":{\"name\":\"Vil\u00e1 Abogados\",\"@id\":\"https:\\\/\\\/vila.es\\\/en\\\/#\\\/schema\\\/person\\\/1338568a83d16fbfd6073c8cc4834904\"},\"headline\":\"CORPORATIONS RUN BY ARTIFICIAL INTELLIGENCE: THE ARGENTINIAN INITIATIVE\",\"datePublished\":\"2026-06-19T13:30:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/vila.es\\\/en\\\/technology\\\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\\\/\"},\"wordCount\":1779,\"image\":{\"@id\":\"https:\\\/\\\/vila.es\\\/en\\\/technology\\\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/vila.es\\\/wp-content\\\/uploads\\\/2020\\\/07\\\/tecnologia.jpg\",\"articleSection\":[\"Corporate\",\"Technology\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/vila.es\\\/en\\\/technology\\\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\\\/\",\"url\":\"https:\\\/\\\/vila.es\\\/en\\\/technology\\\/corporations-run-by-artificial-intelligence-the-argentinian-initiative\\\/\",\"name\":\"CORPORATIONS RUN BY ARTIFICIAL INTELLIGENCE: THE ARGENTINIAN INITIATIVE - 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