Much ado about artificial intelligence or: the automation of contract formation

Abstract

Abstract Every day, millions of decisions are made based on information provided by computers and millions of transactions are concluded automatically, by means or with the assistance of computer programs. Computers can accept payment and dispense products. Computers can also calculate the optimal price and predict the demand for the product. Technology enables us to automate a wide range of tasks involved in the process of forming contracts. Contrary to popular belief, such novel transacting practices are easily accommodated by existing legal principles, at least when it comes to the common law of contract. The latter is technology neutral and generally disregards the manner the parties’ statements come into existence. Considerable uncertainty would result if the statements we see on our computer screens could be disavowed on the basis that they were the product of mindless computer operations. This article contends that legal analyses must start with the law, not with overdramatized descriptions of technology or the assumption that contract law cannot accommodate such.