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News

A Delaware plan would let software run companies with nobody in charge

The state's draft Artificial Intelligence Company statute has drawn a congressional document demand over liability.

AIWadmin
Last updated: October 29, 2026 4:51 am
AIWadmin
ByAIWadmin
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Delaware, home to roughly two thirds of the Fortune 500, is drafting a corporate form with no human at the helm. A proposed Artificial Intelligence Company would have an AI agent designated to manage its business and affairs, held by a single member who funds it and collects the profits.

The structure is the controversy. Under the draft bill, that member is not liable for acts or omissions the company takes, or that anyone takes at its direction, with exceptions for fraud, willful violations of law, or conducting business outside the stated purpose. An AIC could do almost anything lawful except banking.

Congress noticed. Representative James Comer, who chairs the House Oversight Committee, wrote to Governor Matt Meyer demanding documents on the proposal, warning it could shield AI companies and their investors from responsibility for harmful conduct, and suggesting federal limits on state AI regulation.

The state’s pitch runs the other way. Secretary of State Charuni Patibanda-Sanchez, who co-wrote a July 2026 Fortune op-ed with Norm Ai founder John Nay, argues that no state law clearly prevents an AI agent from running a company, and that wrapping autonomous systems in a legal identity creates a defined target for damages. The draft proposes a 30-month regulatory sandbox.

Critics are unpersuaded. Berkeley law professor Andrew Baker told the Financial Times the shield looks overly generous without a developed policy rationale. A spokesperson for Meyer said the letter is under review.

TAGGED:AI AgentsAI policyCorporate LawDelawareRegulation
SOURCES:Ars Technica
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