Delaware is considering a legislative proposal to create a new corporate entity known as an Artificial Intelligence Company (AIC). These entities would be managed by AI agents rather than humans, with the ability to sign contracts, manage property, and engage in litigation. The proposal includes a 30-month regulatory sandbox to test the concept.
The draft legislation aims to shield the human or corporate members who fund these companies from legal liabilities, provided they maintain adequate capitalization and do not engage in fraud or willful violations of law. AICs would be permitted to operate in most industries, with the notable exception of banking.
The initiative is a public-private partnership involving the state and Norm Ai. Delaware officials expect the new entity type to increase state tax and fee revenue. In 2025, 334,461 new entities were formed in Delaware, which currently hosts approximately two-thirds of Fortune 500 companies.
The U.S. House Committee on Oversight and Government Reform has launched an inquiry into the plan. Committee Chairman Comer expressed concerns regarding potential regulatory abuse and the protection of AI companies from accountability. He indicated that the committee might propose federal legislation to limit state-level AI regulatory authority.
