Contract Formation Using Algorithms: Old Problems and New Challenges in the Context of AI Application

Authors

  • Nataliia Filatova-Bilous Yaroslav Mudryi National Law University, Ukraine

DOI:

https://doi.org/10.21564/2414-990X.171.338051

Keywords:

contract, contract law, algorithmic contract, electronic agent, digital assistant, algorithm

Abstract

The article focuses on contract formation using algorithms (in particular, bots, digital assistants, etc.). This issue has been studied in legal doctrine since the late 90s, when began the means of automating the process of contract formation began to be used in contractual practice by various e-commerce entities for the first time. However, today, due to the development of artificial intelligence (AI) technologies, new challenges arise in the context of the use of algorithms in contractual practice. Since the operation of AI-based algorithms and their results are not always fully predictable, in practice, situations may arise when a contract is concluded on different terms than those that the party that used the algorithm intended or wished to include in the contract, or when a contract is concluded, although the party did not want it to happen. The article analyzes the US legislative acts which, for the first time in the world, introduced regulation of the use of algorithms in contractual practice. Particular attention is paid to the analysis of the latest developments of the United Nations Commission on International Trade Law (UNCITRAL) and the European Law Institute (ELI), which have been thoroughly studying the issue of use of algorithms in contractual practice in recent years. Based on the comparative legal analysis, the author formulates recommendations for the regulation of these issues in Ukrainian legislation.

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Published

2025-12-24

How to Cite

Filatova-Bilous, N. (2025). Contract Formation Using Algorithms: Old Problems and New Challenges in the Context of AI Application. Problems of Legality, (171). https://doi.org/10.21564/2414-990X.171.338051

Issue

Section

Articles