Delaware Proposal for AI-Run Companies Draws Scrutiny from Congressional Committee

Delaware is advancing a proposal that would allow Artificial Intelligence Companies, or AICs, to operate with an AI agent handling business decisions without routine human supervision. Under the draft plan, an AIC could pursue any lawful purpose, excluding banking, and the company itself could sue and be sued. The structure would require each AIC to have one member, which could be a person or an entity, responsible for funding, and this member would generally be protected from the company's liabilities, with exceptions for fraud, willful lawbreaking, or activities outside the stated purpose.

Delaware Secretary of State Charuni Patibanda-Sanchez outlined the proposal with Norm Ai CEO John Nay in Fortune, and supporters argue that granting autonomous systems a legal identity would make their actions traceable and provide a target for liability. The proposal includes establishing a 30-month regulatory sandbox for testing the concept. However, the plan has drawn attention from lawmakers and legal experts.

House Oversight Committee chairman James Comer wrote to Governor Matt Meyer on October 26, requesting documents regarding the proposed AIC, seeking details on safety assessments and industry involvement, and warning that the investigation could lead to federal legislation restricting state AI initiatives. UC Berkeley law professor Andrew Baker told the Financial Times that the proposed liability shield appeared excessively generous and lacked a sufficiently developed justification. The concept of AI managing corporate operations has been discussed previously, with Logitech CEO Hanneke Faber calling for AI agents in every board meeting in October 2025, and OpenAI boss Sam Altman stating he wants his company to become the first large firm run by an AI.

Spotlight Delaware reported that the bill was likely to be introduced next year, while Governor Meyer's office told Ars it was reviewing Comer's letter.

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