AI IN CONTRACTS: UNVEILING LEGAL CHALLENGES AND CHARTING THE FUTURE AHEAD

AUTHOR– SARAH SHARMA, A STUDENT AT LLOYD LAW COLLEGE, GREATER NOIDA

Best Citation – SARAH SHARMA, AI IN CONTRACTS: UNVEILING LEGAL CHALLENGES AND CHARTING THE FUTURE AHEAD, ILE CONTRACT LAW REVIEW (ILE CLR), 1 (1) of 2023, Pg. 18-25, APIS – 3920 – 0030 | ISBN – 978-81-961791-2-0.

ABSTRACT

The rise of Artificial Intelligence (AI) has led to a transformation in the way we conduct business. Contract formation is one of the significant areas that experienced changes in the process of formation. Traditionally, contracts require human intervention as the parties involved negotiate and agree on specific terms. However, with AI, contracts now be formed without human interference, offering more efficient and faster contract formation processes. While the adoption of AI in formation is evident, it comes with its unique legal challenges. As such, businesses must critically analyze and address these challenges to ensure legal compliance and potential risks. Moreover, with the exponential growth of AI-driven in recent years, the paper highlights the need for practical and comprehensive approaches for addressing these challenges while safeguarding the interests of the parties involved in contract. It also discusses the future of AI in the legal industry and how regulatory bodies and society can work together to chart a path forward. The use of AI in contracts is gaining momentum as businesses recognize its potential to optimize their operations. An overview of AI in contracts, examining the benefits and of its usage while exploring some of the latest developments in field has also been discussed in the paper. As AI continues to evolve and become more sophisticated, its integration in the legal industry will likely become more common and widespread, revolutionizing way contracts are managed and analyzed. This research paper further review the implications of AI in contract formation, legal challenges that businesses face, and highlights the future that businesses should consider when adopting AI in the formation of legal contracts.

Keywords– Artificial Intelligence, Contract, Contractual Offer, Liability, General Data Protection Regulation, Algorithms, Natural Language Processing (NLP).