Delaware — Federal AI Profile + State AI Laws (HB 316 election deepfakes 2024; HB 353 deepfake NCII 2024; HB 191 AI medical-title ban 2026) + Corporate Governance: AI Compliance Requirements

Delaware enacted two private-binding AI criminal statutes in 2024, both signed October 9, 2024 and effective immediately. (1) House Substitute 1 for HB 316 creates an elections crime: distributing, within 90 days of an election, a deepfake (manipulated or GAN-created audio/visual) intended to harm a candidate/party or deceive voters — Class B misdemeanor, Class A if intended to cause violence or bodily harm, Class E felony for a repeat offense within 5 years of a prior conviction under the same section; a disclaimer ("This [image/video/audio] has been altered or artificially generated") is a statutory defense; a depicted candidate may obtain a civil injunction. (2) HB 353 amends Titles 10 & 11 to criminalize wrongful disclosure of deepfakes depicting an identifiable person nude or in sexual conduct — Class A misdemeanor violation-of-privacy offense (felony where the depicted person is a minor), plus remedies under the Delaware Uniform Civil Remedies for Unauthorized Disclosure of Intimate Images Act. Enforced by state criminal prosecution (DOJ/AG) with private civil remedies. Counsel should confirm the exact bill citations, misdemeanor/felony classes, and effective dates against the enacted text. legal_review_pending.

Delaware HB 191 (signed by Governor Matt Meyer 2026-04-23) bars AI systems/tools from holding professional licenses as nurses, advanced-practice nurses, physicians, or physician assistants, and prohibits AI tools from using protected professional titles/abbreviations — "doctor," "physician," "MD," "DO," "nurse," "RN," "APRN," "CRNA," "PA." Applies to any AI healthcare product marketed or deployed to Delaware patients/providers. Counsel should confirm the exact effective date and any statutory penalty against the enacted bill text — not independently confirmed this cycle. legal_review_pending.

Companies incorporated in Delaware (DGCL) face potential corporate governance liability for AI failures under the duty of care and duty of oversight (Caremark standard). Delaware Court of Chancery has held directors liable for failing to implement adequate oversight of high-risk business activities — AI systems driving consequential decisions (credit, employment, safety-critical operations) may trigger Caremark oversight duties. Boards should: (1) Receive regular AI governance reports. (2) Ensure AI risk is included in enterprise risk management. (3) Review AI incident response plans. Cite: In re Boeing Co. Derivative Litigation (Del. Ch. 2021, Caremark standard applied to software safety).

Delaware's credit card and banking sector (Bank of America, JPMorgan, Capital One all have major Delaware operations) relies on AI for credit decisioning. FCRA requires specific adverse action reasons — CFPB Circular 2022-03 prohibits vague "model score" reasons. AI-based credit decisions must provide specific, model-derived reason codes. Delaware Bank Commissioner may issue additional guidance for state-chartered institutions.

Delaware employers using AI for hiring, promotion, or performance management must comply with federal employment discrimination laws. Particularly relevant for Delaware's financial services sector. AI tools must be pre-deployment tested for disparate impact on protected classes. Cite: EEOC v. iTutorGroup (2022); EEOC AI and ADA Technical Assistance (2022).

Delaware consumer-facing AI must comply with FTC Act § 5. Delaware AG may also apply the Delaware Consumer Fraud Act (6 Del. C. § 2513) to deceptive AI. Credit card AI that uses unfair or deceptive practices is subject to both FTC and CFPB enforcement.

Monitor legis.delaware.gov. Delaware AG (ag.delaware.gov) enforces consumer fraud and may pursue deceptive AI. Delaware Court of Chancery AI governance decisions will set national precedents for incorporated companies.