Imagine a world where an AI can not only suggest business strategies but autonomously execute them—raising capital, acquiring companies, or even establishing a new LLC. This might sound like science fiction, but the state of Delaware is laying the groundwork to make it a regulated reality.
In a forward-thinking move, the Delaware Artificial Intelligence Commission has just greenlit the creation of a framework for an “agentic AI sandbox.” This isn't your typical playground; it's a sophisticated, controlled environment designed to test the very limits and potential of autonomous AI technologies.
What is Agentic AI?
At its core, agentic AI is a form of artificial intelligence that can do more than just process data—it can make independent decisions and take actions to achieve specific goals. Think of it as moving from a smart assistant that suggests a response to an email to one that drafts and sends it on your behalf, all while understanding the context and consequences.
State Rep. Krista Griffith, who chairs the AI commission, highlighted the broad potential, stating, “This is a framework that ultimately could be used in a variety of sectors.”
A New Frontier for Corporate Governance
Given Delaware's status as a global hub for corporations, it's no surprise that the first area of exploration for this new sandbox is corporate governance. The possibilities are both exciting and complex.
Charuni Patibanda-Sanchez, Delaware’s Secretary of State, posed some thought-provoking questions to the commission. Could an AI be used to raise money or buy companies? Should the state allow an agentic AI to incorporate an LLC? While she noted that the “human touches” in current policies might prevent this today, the sandbox is designed to explore these very questions.
“We’ve realized that we have way more questions than any kind of answer,” Patibanda-Sanchez admitted, underscoring the need for this experimental approach.
A Proactive, Collaborative Approach
The initiative follows a legislative resolution directing the AI Commission to work with the Secretary of State's office. The goal is to shape how these powerful technologies are developed and governed from the ground up.
“A sandbox creates a controlled environment for AI agents to be tested, observed and approved, with regulators, and the public, involved from the start,” explained commission member Patrick Callahan. This collaborative model stands in contrast to regulatory efforts elsewhere.
For instance, Colorado passed the Colorado Artificial Intelligence Act, focusing on preventing discrimination from “high-risk” AI. Meanwhile, a comprehensive AI bill in California was vetoed for being too broad, and federal discussions have swung between light regulation and temporary moratoriums on state-level rules.
Delaware's leaders believe their small state is the perfect place for this innovative venture. “It’s a great innovative way to make use of our small state in a competitive way,” said commission member Molly DiBianca.
As Secretary Patibanda-Sanchez put it, the path forward is “innovative, it’s new, it’s a little scary sometimes. But if we don’t do it, it won’t be the best product out there.” By embracing the uncertainty, Delaware is positioning itself not just as a follower in the AI revolution, but as a key architect of its future.
Key Takeaways
- Pioneering Initiative: Delaware is creating a sandbox to test and regulate agentic AI, which can make autonomous decisions.
- Focus on Corporate Law: The initial application will be in corporate governance, leveraging Delaware's unique position as a corporate hub.
- Collaborative Regulation: The sandbox model involves regulators, developers, and the public in a controlled testing environment.
- A Unique Path: Delaware's proactive and experimental approach differs from more restrictive or hands-off policies seen in other states and at the federal level.
- Innovation Hub: The state is using its size and influence to become a leader in shaping the future of AI policy.