Source: Visive AI

The article explores the growing use of artificial intelligence (AI) in drafting contracts and the legal concerns surrounding their enforceability. AI-powered contract generation tools are becoming increasingly popular among businesses and legal professionals, offering efficiency, accuracy, and cost savings.

One of the main benefits of AI-generated contracts is their ability to standardize language, reduce errors, and ensure compliance with relevant legal frameworks. AI tools can analyze thousands of contracts in seconds, identifying clauses that might pose risks or conflicts.

However, legal experts question whether AI-generated contracts hold the same legal weight as those drafted by human lawyers. Some of the primary concerns include:

• Lack of human oversight: AI may draft contracts that are legally flawed or ambiguous.
• Liability issues: If an AI-generated contract leads to a dispute, it remains unclear who is responsible—the user, the software provider, or the AI itself.
• Enforceability in court: Some jurisdictions may require contracts to have explicit human input to be legally binding.

The article also discusses how different countries are adapting to AI contract law. While some jurisdictions recognize AI-assisted contracts, others are still developing legal frameworks to clarify their validity.

Ultimately, AI is expected to play a transformative role in contract law, but businesses must ensure human verification remains a key part of the process.