Law professor advises founders to avoid Delaware's proposed AI company entity form

Prof_CarlaReyes · x · 2026-11-06

Law professor Carla Reyes says that as a founder or founder's counsel in the AI space, she would never use Delaware's proposed AI Company (AIC) entity form.

Her argument: corporate formation statutes provide default contract terms, mostly alterable by contract—they are not regulatory tools. If Delaware wants requirements on AI agents, it should regulate entities that use them in problematic ways. She adds that if Delaware tried to make AIC mandatory, she wouldn't form entities there at all, and doubts Delaware could enforce against entities formed in other states.

Related event: Law Professor Urges Use-Based AI Agent Rules, Warns Against Delaware AIC(2 posts)→

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