As artificial intelligence (AI) tools become increasingly embedded in the drafting, negotiation and management of contracts in corporations, their influence is now being felt in the world of dispute resolution and litigation.
While the promise of efficiency and standardisation is alluring, the use of AI-generated content in legal agreements introduces a host of new risks — some of which could have serious consequences for businesses, legal professionals and their clients.
AI platforms using generative AI to produce legal documentation, such as generative contract drafting tools, are designed to streamline the creation of legal documents by drawing on vast libraries of precedent and user-uploaded content. However, when disputes arise over the meaning or enforceability of AI-generated clauses, the lack of human oversight and the opaque nature of AI decision-making can create significant challenges.
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