Artificial intelligence: the challenges posed to the law of contract in determining liabilities of parties

Abstract

Traditional methods of contracting involve, among others, using paper documents and oral communications. The extant laws appreciate these methods of contracting and make provisions for the validity, rights and liabilities of parties. Electronic transaction models make a detour from the established jurisprudence on contract provided by these extant laws and the court systems. With constant development of technology one-off legal response may sometimes not be enough to address new challenges posed. Artificial intelligence is one of the areas of development in technology that has affected the traditional legal provisions on contract. Machine intelligence has created some challenges in determining the liability of contracting parties, especially where the machine is acting on learned or extraneous data. It is observed that the existing international legal regime by the United Nations, which serves as the authority in resolving international legal matters, is not sufficient to address this problem. This article addresses the effect of artificial intelligence on contract in determining the liability of parties, and suggests a solution.