ARTIFICIAL INTELLIGENCE IN CONTRACTUAL PERFORMANCE: LIABILITY FOR BREACH OF CONTRACT
ARTIFICIAL INTELLIGENCE IN CONTRACTUAL PERFORMANCE: LIABILITY FOR BREACH OF CONTRACT

Summary/Abstract: Artificial intelligence (AI) is taking on a larger role in contract performance. Due to the use of AI, debtors may fail to perform their obligation in the agreed manner, thereby causing damage to creditors. Since this matter is not regulated by EU hard law or soft law, the contractual liability arising from the use of AI is governed by the applicable domestic law. This raises the issues regarding the applicability and adequacy of the rules on contractual liability. In legal systems where contractual liability is strict, the rules can be directly applied. However, in systems that require fault, proving it becomes difficult when AI is involved, leading to a liability gap. The paper analyses four approaches to overcoming the liability gap: granting legal personality to AI, treating AI as an agent, regarding AI as an auxiliary, and introducing an exception in the form of strict liability.

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