US lawmakers challenge Delaware AI-company plan

The draft legislation would let an Artificial Intelligence Company pursue any lawful purpose, for profit or not, except banking.[3] AI agents could be designated to manage and conduct the company’s business.[3] The proposal would establish a 30-month regulatory sandbox to test the concept.[3] Each AIC would have one member, a person or entity responsible for keeping it adequately capitalized, and the company would have to log its activities.[3] The AIC could hold and dispose of property, incur obligations, and sue or be sued in its own name.[3]

The proposal’s liability protections are a central point of concern. A member would generally be shielded from an AIC’s debts, with exceptions for undercapitalization, fraud or willful violations of law.[3] The draft also says a member would not be liable for acts or omissions by the AIC or others acting at its direction.[3] Comer warned that the framework could shield powerful AI companies and investors from responsibility for reckless harm and enable anticompetitive regulatory capture.[1] One analysis described the liability shield as overly generous without a well-developed or justified policy rationale.[3]

The committee requested documents and communications about the AIC plan dating back to Jan. 1, 2025, including internal AI chat logs.[2] Comer’s committee said a Delaware Artificial Intelligence Commission report did not mention efforts to assess the proposal’s safety risks or consult independent experts.[1] Comer also argued that the policy-making process lacked the transparency Delaware officials say the AIC framework would provide for AI decision-making.[2] The committee says the information could inform possible federal legislative efforts to limit state AI regulatory initiatives.[1]

Delaware Secretary of State Charuni Patibanda-Sanchez and Norm AI founder and CEO John Nay announced the proposal and a public-private partnership in Fortune in July.[2] Norm AI encodes law and regulation into AI systems.[2] The draft legislation was described as potentially first-in-the-nation, and Delaware lawmakers were expected to consider the initiative the following year.[2] A spokesperson for Meyer said his office was reviewing Comer’s letter, and Delaware’s deadline to respond is Nov. 9.[2] About two-thirds of Fortune 500 companies are incorporated in Delaware.[3]