Delaware’s Proposal to Allow AI-Run Companies Sparks Federal Scrutiny

A controversial legislative proposal in Delaware to permit Artificial Intelligence Companies (AICs) operated entirely by autonomous software agents has drawn sharp criticism and a federal inquiry from US Representative James Comer.

The Delaware Proposal and Its Goals

State officials, including Secretary of State Charuni Patibanda-Sanchez, have advanced plans to create a legal framework for autonomous software to manage corporate entities. Under a draft bill, an AIC could engage in lawful business activities across multiple industries, excluding banking, while being directed entirely by an AI agent rather than a human. Proponents argue that giving autonomous systems a defined legal identity brings them into regulatory visibility, ensuring traceability and generating tax revenue for Delaware.

Federal Scrutiny and Liability Concerns

Rep. James Comer (R-Ky.), chairman of the House Committee on Oversight and Government Reform, sent a letter to Delaware Governor Matt Meyer requesting documents regarding the initiative. Comer expressed concern that the proposal could shield powerful AI companies and their human investors from liability for reckless or harmful actions, while potentially enabling anticompetitive regulatory capture.

Legal experts have also weighed in on the initiative. UC Berkeley law professor Andrew Baker noted that the proposal risks offering an overly generous liability shield without sufficient policy justification. Meanwhile, York University law professor Martin Petrin suggested that other states might adopt similar measures to compete, indicating that a federal framework could help address safety concerns.

Practical Implications and Verification

• Regulatory Sandbox: The state has considered a 30-month testing period to evaluate agentic commerce under supervision.
• Human Liability: While human backers would generally be shielded from debts, exceptions apply in cases of fraud or willful legal violations.
• Official Updates: Interested parties can monitor announcements directly from the Delaware Department of State and the US House Committee on Oversight and Government Reform for official legislative texts and correspondence.