The rapid development of technology underlies the presence of artificial intelligence (AI) in human activities and life, where AI can provide many benefits in helping human work, one of which is in the business world. AI can carry out actions and actions like humans, and this raises legal problems if a malfunction occurs in the AI which is detrimental to consumers, considering that there are no legal regulations that specifically regulate AI in Indonesia. Therefore, this research aims to determine the legal position of Al as a subject in the legal system in Indonesia and to analyze the legal protection that should be given to consumers if ai malfunctions and harms consumers. Apart from that, it also aims to develop regulations that are able to protect consumer data and rights, so that they are not left behind and are able to answer the challenges of the digital era. This research uses normative legal research methods. In Indonesia, AI is an electronic system and an electronic agent. AI is not a legal subject and does not have awareness in determining its will in carrying out its actions, therefore the responsibility for AI's actions and actions is borne by the creators and users of AI as absolute legal subjects. The appropriate legal protection when AI malfunctions that harm consumers is compensation.