Artificial Intelligence and Digital Contracts: Legal Challenges of Automated Contract Formation and Enforcement

Abstract

The rapid development of artificial intelligence and digital communication technologies is transforming the way commercial agreements are created, negotiated, executed, and performed. Digital contracts are increasingly generated or supported by automated systems capable of analyzing contractual terms, negotiating conditions, identifying risks, and initiating transactions with limited human intervention. While these technologies can improve efficiency and reduce transaction costs, they create complex legal questions concerning consent, contractual intention, attribution, authentication, liability, transparency, and enforceability. This article examines the relationship between artificial intelligence and digital contract formation, focusing on the legal implications of automated contractual decision-making. Particular attention is given to AI-generated contractual terms, electronic signatures, automated agents, smart contracts, algorithmic negotiations, authentication, contractual errors, and responsibility for AI-generated actions. The article argues that traditional principles of contract law may face difficulties when contractual decisions are generated through autonomous or semi-autonomous technological systems. It proposes a technology-oriented framework based on human authorization, secure authentication, audit trails, explainability, error-correction mechanisms, and clearly defined allocation of responsibility. The article concludes that AI can significantly enhance digital commerce, but its contractual applications require appropriate legal safeguards to ensure certainty, accountability, and protection of contracting parties