REGULATING ARTIFICIAL INTELLIGENCE IN COMMERCIAL CONTRACTS: LEGAL CONSIDERATIONS AND IMPLICATIONS

A B S T R A C T The authorized, proper, and policy consequences of artificial intelligence (AI) in commercial contracts are studied in this research, which also reflects the instruction of AI in commercial contracts. Traditional legal perceptions like offer, acceptance, and liability face new problems as AI plays a vital role in decision-making, contract formation, and performance. Notably, although AI is proficient of handling huge extents of records on its own, it deficiencies legal personhood and human purposes, which sounds into request the legality of contracts formed by AI. Data privacy, intellectual property rights, and disparate international regulations are among the main legal issues noted. While some protections are existing by present frameworks alike the California Consumer Privacy Act (CCPA) and the EU's General Data Protection Regulation (GDPR), they are lacking to discourse glitches alike algorithmic bias and responsibility in sovereign transactions. It highpoints intellectual property contests surrounding AI generated revolutions and records the contradictory governing plans crosswise areas: the EU's risk-based method, the U.S.'s sector specific norms, and China's severe regulations, prominent to legal fragmentation. Operating qualitative doctrinal and comparative methods, the research supporters for constant legal standards, defining AI's legal prominence, and helpful obligation in contracting.