AI-Enabled Contract Lifecycle Management: Automation, Comparative Analysis, Legal Risks And Existing Legal Frameworks
- IJLLR Journal
- 2 hours ago
- 2 min read
Vikram Singh, B.A.LL.B. (Hons.), Law College Dehradun, Uttaranchal University, Dehradun, Uttarakhand, India
ABSTRACT
The application of Artificial Intelligence (AI) in legislation and businesses processes concerning contracting has changed the process of contract life cycle management into an AI-based process, meaning that all operations connected with drafting, negotiation, signing and control of contracts are carried out through software programs based on artificial intelligence. Such software includes machine learning, natural language processing and predictive analytics to automate operations like creating standard contract clauses, identifying and interpreting risky clauses, negotiating agreement terms, signing the contract with electronic signatures and monitoring its operation. Therefore, a smart contract management system can be considered efficient, economical and low-risk as well as capable of managing thousands of contracts.
However, the present research article concentrates specifically on the impact of artificial intelligence (AI) on contract management through the usage of the doctrinal methodology of research. A comparative analysis of traditional contract management techniques and those based on AI reveals benefits that come from employing the technology under discussion. Still, there are some limitations to it as well. Even as the advantages offered by AI cannot be understated, there are also many legal issues that arise from its use, such as data privacy and protection, algorithmic bias, the inability to be transparent about decisions made by an AI, the difficulties with enforcing AI-made contracts and liability and accountability issues. The article makes the case that current legal and regulatory mechanisms are not equipped enough to handle these new challenges. Ultimately, the article makes the case for a well-balanced regulatory system that can adapt to changing times.
Keywords: Artificial Intelligence, Contract Lifecycle Management, Standard Contracts, Legal Issues, Data Privacy and Protection, Algorithmic Bias.
