Buenos Aires — Argentina is positioning itself as a haven for unregulated artificial intelligence (AI), a stance that stands in contrast to growing global calls for oversight of the rapidly evolving technology. Under President Javier Milei, the South American nation is embracing AI innovation with few restrictions, aiming to attract investment and establish itself as a key player despite its limited current role in the AI landscape.

At the recent United Nations General Assembly in New York, Milei declared Argentina’s commitment to avoiding preemptive AI regulation, framing the technology as a frontier of freedom rather than a threat. “Where many see a threat, we see a frontier,” Milei said, dismissing concerns over AI risks as reminiscent of opposition faced by earlier technological advances like the steam engine and electricity.

Milei, the world’s only libertarian president, has proposed policies such as the creation of “nonhuman corporations” operated by AI agents, an idea introduced by Argentine tech entrepreneur Emiliano Kargieman. These corporations would function without human employees, potentially allowing robots to generate significant economic activity for the country. The government is preparing legislation to enable such entities, though with adjustments requiring a human to hold ultimate legal liability. The initiative is intended both to encourage innovation and to provide tax incentives designed to attract foreign investment, particularly for large-scale data centers.

Federico Sturzenegger, the government’s minister responsible for deregulation, emphasized Argentina’s strategy of becoming an attractive jurisdiction for AI ventures, particularly as regulatory frameworks tighten in the United States and Europe. The country’s vast open spaces and energy resources, especially in Patagonia, offer a natural advantage for building data centers. Argentina possesses significant shale oil and gas reserves, alongside a cool climate conducive to energy-efficient server operations. OpenAI, a leading AI organization, has reportedly signed a letter of intent with an Argentine firm to explore data center development, signaling growing international interest.

However, Argentina faces challenges including a fragile power grid, currency controls, and substantial infrastructure costs. The proposed tax incentives aimed at stimulating AI-related investment still require approval by the Senate.

The deregulatory approach has drawn criticism. Yuval Noah Harari, an Israeli historian and futurist, warned that allowing AI-run corporations could create an "AI-state" operating outside the reach of traditional criminal law, as AI agents cannot be punished in ways that deter human actors. Alan Daitch, an Argentine AI expert, called for regulation to address the consequences of AI errors, which impact real individuals.

Meanwhile, Milei’s administration actively uses AI-generated content for political communication. His media team frequently posts AI-created images and videos portraying him in exaggerated or fictional scenarios, including depictions alongside figures like Lionel Messi or historical presidents, and even fabricated appearances at disaster sites. While officials defend these as tools for amplifying his social media presence, critics argue that such practices blur the line between creative expression and misinformation.

Instances of AI-generated videos falsely depicting rival candidates withdrawing from races have circulated among Milei’s supporters, raising further concerns about disinformation. Milei himself has defended this content on grounds of freedom of expression.

Within the administration, some acknowledge the risks. Santiago Pacheco, responsible for creating AI-driven political content, noted the growing complexity in distinguishing between satire and deception, underscoring the need for caution.

Argentina’s AI future remains uncertain as it balances opportunities for economic development against mounting ethical and legal concerns in a global environment increasingly focused on regulating the technology.