Lawmaker Accuses Delaware of Letting AI Dodge Liability

A federal lawmaker is challenging Delaware’s plan to create a new type of company where artificial intelligence agents hold full operational control. U.S. Rep. James Comer of Kentucky wrote to Governor Matt Meyer on Tuesday. He argued the proposal shields human owners from legal responsibility for reckless actions taken by the software.

Comer chairs the House Committee on Oversight and Government Reform. He stated the committee wants documents regarding the state’s effort to establish the Artificial Intelligence Company, or AIC. He described the proposal as ripe for abuse. The letter warned that the AIC structure could protect major AI firms and their investors from liability for harmful outcomes.

The draft bill outlines specific powers for these new entities. AI agents could be designated to manage business affairs and conduct operations. The legislation allows AICs to pursue any lawful purpose, whether for profit or not, with one exception. The business of banking is excluded from this new corporate form.

The state plans to test the concept through a regulatory sandbox. This experimental period would last 30 months. Delaware already attracts many business entities and hopes the AIC status will generate additional tax and fee revenue.

Comer hinted at future federal action based on his review. He said the probe would inform potential legislation to limit state regulatory authority. His request specifically asked for records on the proposal’s development and potential AI safety risks.