Legal Transformation of Contracting Agreements in the Digital Age: An Analysis of the Role of Artificial Intelligence in Ensuring Transparency and Reducing Legal Risks in Contracts
Keywords:
Contracting agreements, Artificial intelligence, Digital transformation, Smart contracts, Legal transparency, Contractual risks, Emerging legal technologiesAbstract
The digital transformation of recent decades, particularly with the emergence and expansion of novel technologies such as artificial intelligence, has laid the groundwork for a profound shift in contractual systems, including contracting agreements. Contracts that were previously grounded primarily in traditional legal principles and models based on written and human-based agreements are now encountering new concepts such as analytical algorithms, smart contracts, and legal conflict prediction systems. This study, employing a descriptive–analytical approach and based on library research and an examination of valid domestic and international legal documents and scholarly articles, investigates the role of artificial intelligence technologies in enhancing the transparency of contracting agreements and reducing legal risks resulting from ambiguity, delays, or breaches in the performance of obligations. The findings indicate that artificial intelligence tools—such as natural language processing (NLP), machine learning, and risk analysis algorithms—can help prevent legal disputes at various stages of contractual execution by identifying ambiguous clauses, forecasting potential conflict points, and offering corrective recommendations. Additionally, the use of blockchain-based smart contracts enables the automatic execution of obligations upon the fulfillment of predetermined conditions. The study concludes that the purposeful and intelligent use of modern digital capabilities necessitates a revision of traditional laws, the development of supplementary regulations, and the design of legal technological infrastructures in order to enable the efficient deployment of artificial intelligence in the management and execution of contracting agreements.
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Copyright (c) 2025 Sara Abbaszade Lima (Author); Seyed Morteza Naeemi; Mahmood Kohani Khoshkbejari (Author)
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