Contract Interpretation and Artificial Intelligence

This paper analyzes how artificial intelligence (AI) can impact contract interpretation in transnational transactions. It explores the challenges posed by differing legal systems and interpretative principles like subjective intent and objective meaning. AI’s ability to detect multiple plausible meanings and resolve ambiguities in contracts is examined, along with its potential to improve efficiency and neutrality of the drafting process. Furthermore, risks such as bias, ethical issues, and resistance to AI from the legal community and practitioners are considered in this study, ultimately advocating for a balanced use of AI alongside human oversight to ensure legitimacy and compatibility with diverse legal frameworks.