AI IN CONTRACT LAW: NAVIGATING LEGAL CHALLENGES AND OPPORTUNITIES IN THE DIGITAL ERA

The use of Artificial Intelligence in contract law has had a profound change in the process of contract formation and enforcement. Thus, this research paper explores the dynamic nature of the adoption of AI in the context of contract law and specifically within the Indian legal system. Beginning with the historical evolution of contract law in India, the paper highlights the shift from manual to advanced AI-based approaches. AI has progressed basic automation tools to sophisticated systems for tasks such as like writing, negotiating, and reviewing contracts.

With the rise of smart contracts, particularly those propelled by Artificial intelligence, questions arise regarding their enforceability as contract, consent between the parties, and liability issues. The research focuses on the issues of enforceability of contracts concluded with the assistance of artificial intelligence, including the legal recognition of artificial intelligence as a contracting party and the legal validity of the contracts concluded with the use of artificial intelligence.

It also considers distribution of liability in AI-assisted contracts, looking at how blame is apportioned where AI is implicated in contract violation. Furthermore, the paper compares national and international jurisdictions to illustrate the landscape of AI-related contractual disputes and potential legal outcomes.

The paper concludes by analyzing the prospects and implications of Artificial Intelligence in the field of contract law. It emphasizes the need for changes in legal rules related to AI, ethical considerations, and judicial adaptations necessary to address AI-related issues. The consideration of AI in contract law emphasizes the necessity for legal innovations while AI requiring legal reforms that promote justice and fairness in contractual relationships. This paper provides a comprehensive analysis of how AI is progressively integrating into the legal framework of contract law and identifies key areas for further research and application.

In this research, we utilized a qualitative approach, conducting a thorough review of literature, case laws, and legal frameworks to assess the impact of AI on contract law and explore emerging legal challenges.