Delaware’s plan to test autonomous, AI-managed companies has drawn the attention of a senior GOP congressman who expressed concerns Monday about insulating powerful tech companies from legal consequences.
Rep. James Comer (R-Ky.), chair of the House Oversight and Government Reform Committee, said in a letter to Gov. Matt Meyer (D) that his committee is looking into the proposal for a new type of business structure, the “agent-managed company.” The letter seeking documents from Meyer’s office by Nov. 9 referred to the entity, which would enjoy legal personhood like a corporation, by its previous name, “AI company.”
“We are concerned that Delaware’s AIC proposal could be used to protect powerful AI companies and their investors from responsibility for reckless harmful actions,” Comer wrote.
The letter, which said federal lawmakers are considering possible ways “to appropriately limit state AI regulatory initiatives,” echoes a popular line of attack on the AMC proposal since it was formally rolled out in July. Critics have argued the idea represents a solution in search of a problem, offering no advantage over traditional corporate governance mechanisms beyond a liability shield for the humans profiting from AI.
Read More: AI-Run Companies Are Coming. Delaware Wants to Get Ahead of Them
The agent-managed company initiative, set for a rollout as soon as next year, arrives at a potential turning point for the technology rapidly transforming life and work. The congressional letter came the same day AI giant Anthropic PBC filed paperwork for what could be the biggest initial public offering in stock market history.
AI risks, meanwhile, have emerged as a top political issue ahead of next week’s midterm elections amid a widening backlash to data centers, job losses, cyber risks, harm to children, and even existential threats to the future of humanity. And the models themselves are advancing rapidly, with industry leaders hyping the promise of autonomous AI agents to replace the chatbots that have become ubiquitous.
Jonah Anderson, deputy press secretary for Meyer, told Bloomberg Law on Monday that the governor’s office is in the process of reviewing Comer’s letter.
A representative for Delaware Secretary of State Charuni Patibanda-Sanchez, who’s quarterbacking the AMC rollout, didn’t immediately have a comment.
‘Race to the Bottom’
The state’s proposal would create a regulatory “sandbox” to test the AMC structure, including liability limits for parent companies and investors. A committee of state officials, lawyers, and tech experts would be tasked with admitting businesses on a case-by-case basis and setting capitalization requirements calibrated to cover their potential liability.
The mixed reception from professionals and the public runs the spectrum from zealous support to ardent resistance, with both backers and opponents citing the tendency of AI to go rogue. Proponents say models forced to interface with the law — and internalize its incentives — could be more easily tamed. Opponents have argued the dynamic could merely turbocharge legal evasion efforts by agents already known to lie, cheat, and steal.
Read More: AI-Run Company Gamble Tests the Limits of Delaware Corporate Law
Reactions to the oversight committee’s demand varied with the beholder.
Yonathan Arbel, a University of Alabama law professor who has written in favor of AI-run companies, called it “worrisome,” saying Comer is mixing up titanic frontier labs like OpenAI and Anthropic with the AI-managed startups envisioned in Delaware. In fact, the proposal would make it easier to hold investors and corporate parents responsible than it currently is for existing business entities, he said.
“If Congress wants to ban agentic commerce, they can do so,” Arbel told Bloomberg Law via email. “But raising worries over a method that organizes AI agents and allows for effective governance seems wrongheaded to me.”
Martin Petrin, a law professor at York University in Toronto who has expressed cautious support for some version of the idea, said Comer’s request “seems quite broad.” Delaware is only the first mover, not the last, and the area might actually benefit from congressional involvement, according to Petrin.
“Other states will likely move ahead with similar proposals to compete in this area,” he said in an emailed message. “If they are serious about this, a federal framework could help address concerns about safety and a regulatory race to the bottom.”
Regulatory Capture?
Monday’s letter also spotlighted Delaware’s partners on the AMC project: tech startup Norm Ai and the legislation’s principal drafter, a partner at Delaware’s largest law firm, Richards, Layton & Finger PA. The oversight committee is worried about “protecting non-transparent forces seeking anticompetitive regulatory capture behind state AI initiatives,” Comer said.
RLF said in a statement Monday that its lawyers have “for generations” proudly participated in the work of keeping Delaware’s corporate laws state-of-the-art.
“Delaware’s corporate and alternative entity statutes have always been developed through a thoughtful and deliberative process in which practicing lawyers contribute their expertise and the General Assembly makes decisions with the benefit of that input,” the firm said.
Norm Ai didn’t immediately respond to a request for comment Monday.
The congressional letter seeks “all documents and communications” about the AMC plan since Jan. 1, 2025, “including internal AI chat logs.”