"Of course he is a programme," says Lo Qi. "You obviously know little of the physical world. The vast majority of programmes exist inside the mainframes of the System. No programme has physical form; if required we construct mobile shells to carry our programme. Like... the Sentinels? Very few have cause to, though. What relevance has location? Those of us you see in the Matrix are simply those of us who have transferred our programme into that greatest of all systems.
"Of course, it could be said that no Human has physical form either, that you are mental patterns inside flesh. Your very presence here suggests that is the case, that you are mind more than body."