Source: JD Supra

JD Supra explores how contract law is being challenged by the rise of “agentic AI”—systems capable of acting autonomously to form or modify agreements. The article reviews the legal implications of AI agents making binding decisions without direct human oversight, raising questions about intent, authority, enforceability, and liability.

Particular focus is given to the lack of clear legal doctrine around whether actions by AI can be attributed to a principal and under what circumstances such contracts can be considered valid. Legal scholars suggest possible reforms, including new definitions of agency, codified digital intent standards, and AI-specific contract clauses.

The article also notes that as AI agents become more prevalent in commerce, courts and lawmakers will need to evolve traditional doctrines to accommodate non-human actors in contractual relations.