Artificial Intelligence as a Director of a Limited Liability Company from a Legal Perspective

Abstract

The advancement of artificial intelligence (AI) has raised questions about its potential utilization in various roles, including as a member of the board of directors in a Limited Liability Company. In Indonesia, this phenomenon was highlighted when PT Suryadhamma Investama claimed to have appointed an AI named Ardi as its Director. This study aims to examine the legal feasibility of AI serving as a corporate director within the Indonesian legal framework. Employing a doctrinal research method, this study relies on secondary data obtained from literature studies. The analysis is conducted using Article 1367 paragraph (1) of the Civil Code to explore the legal status of AI and Article 93 paragraph (1) of the Company Law to examine the normative requirements for the position of a Director. The findings indicate that, under Article 1367 paragraph (1) of the Civil Code, AI can be analogized as a legal object categorized as goods under the supervision of its creators, sponsors, and owners. Furthermore, based on Article 93 paragraph (1) of the Company Law, the role of a Director is normatively restricted to natural persons who meet specific eligibility criteria, thereby excluding AI from such appointments. These findings have implications for corporate governance and the legal responsibilities associated with AI utilization, emphasizing the need for regulatory clarity in addressing AI's role within organizational structures.