Microsoft AI CEO Mustafa Suleyman has warned against a legislative proposal in Delaware that would permit autonomous artificial intelligence (AI) agents to legally manage and operate corporate entities. Suleyman pushed back the state’s initiative, saying that granting legal corporate status to autonomous software demands extreme scrutiny, and calling it ‘deeply concerning’. Not just tech leaders, the proposal also sparked sharp backlash from federal lawmakers like Representative James Comer (R-Ky.), chairman of the House Committee on Oversight and Government Reform.“Deeply concerning to me… Delaware proposal to let agents run businesses… we should be very cautious here,” Suleyman stated on social media platform X (formerly Twitter). Quoting directly from the framework’s core premise, Suleyman highlighted the far-reaching nature of the concept:“A Delaware AIC will be a separate legal entity whose day-to-day affairs are managed by an AI agent rather than a person. At the agent’s direction, the AIC can sue and be sued in its own name, hold and dispose of property, and incur obligations…”
What is Delaware Artificial Intelligence Company (AIC)
Delaware, widely recognised as America’s premier hub for corporate incorporations, is exploring a new business structure titled an Artificial Intelligence Company (AIC). According to a draft bill that may go before the Delaware State Legislature, the framework aims to introduce a 30-month “regulatory sandbox” to pilot the concept, bringing in additional state revenue through corporate filing fees and taxes.Under the provisions of the draft bill, an AIC could operate with any lawful commercial purpose, whether for-profit or non-profit, with the sole explicit restriction being the business of banking. Moreover, an AI agent could be formally designated to oversee day-to-day affairs, enter into contracts, make commercial transactions, and direct business strategy without a human at the helm.At the direction of its designated AI agent, the company could hold or dispose of real and personal property, incur financial obligations, and initiate or face legal lawsuits in its own corporate name.
Congress threatens intervention
The prospect of shielding corporate backers from AI misbehaviour has triggered an immediate counter-offensive in Washington. Last month, Representative Comer sent a formal inquiry to Delaware Governor Matt Meyer demanding documents regarding the AIC framework and its associated safety risks.Comer warned that the mechanism creates a dangerous loophole:“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, while also protecting non-transparent forces seeking anticompetitive regulatory capture behind state AI initiatives.”Comer warned that federal legislation could be introduced to directly preempt state-level AI efforts.