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Delaware Calls for Human-Free AI Companies, Alerts Congress

Regulation & Ethics·Tom Levy·

Delaware Calls for Human-Free AI Companies, Alerts Congress

Delaware Calls for Human-Free AI Companies, Alerts Congress
Key Takeaways
1Delaware is preparing a status of "Artificial Intelligence Company" for businesses operated by AI agents without humans
2Congressional members are concerned that this status could broadly protect human owners in case of misconduct
3Congress is not ruling out a federal law to block the initiative
4The project is part of the competition among states to attract businesses
Why it matters : This initiative could transform legal liability and governance of companies in the age of AI.

Delaware is preparing a status of "Artificial Intelligence Company" that would allow the management of businesses by autonomous agents, without human presence. In Washington, lawmakers fear a liability shield for owners and do not rule out a federal lock.

Congress Considers a Federal Lock and Fears Irresponsibility

Lawmakers in Washington are concerned that human leaders could evade accountability if an AI goes awry. Congress is not dismissing the idea of a federal law to block the initiative before it launches. James Comer, who chairs the House Oversight Committee, has formally requested explanations from the governor of Delaware. The concern expressed at the Capitol focuses on the risk of a shield for investors and major tech players in the event of a mishap.

The AIC Status Would Delegate Management and Shield Owners

Named Artificial Intelligence Company, the proposed structure would allow an autonomous agent to run a business daily, from signing contracts to legal proceedings, without human intervention. An investor or parent company would provide the initial capital for registration. In return, the legal and financial liability of the owner would be almost entirely protected: in the event of a costly or illegal mistake by the AI, the virtual entity would be sued, except in cases of intentional fraud or insufficient initial capital.

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Delaware Seeks Revenue Amid Competition from Texas and Nevada

As a key state for business registration, Delaware generates significant revenue but is facing increasing competition from Texas and Nevada. Authorities hope that a new status will attract additional revenue and cut the legs out from under competing alternatives. This initiative is part of a clear desire to position itself as a pioneer of an autonomous economy to boost revenues and counter states that have become attractive.

A Draft in Preparation, Supporters and Critics at Odds

Delaware is preparing a law to allow companies run by AI agents without humans at the helm, as part of an initiative to grant these agents legal personality. Supporters believe it is preferable to strictly regulate these systems within a legal and traceable framework. Opponents, on the other hand, see it as a mechanism designed to exempt tech enthusiasts, pointing to a lack of transparency in a draft co-signed with law firms and startups, which fuels suspicions of protecting powerful economic interests.

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