⚖️ Who’s liable for mistakes in an AI-generated contract?

AI isn’t a contracting party. It’s not an author or a lawyer.
It’s just a tool that generates text based on your input.

You – the user – are fully responsible.

• AI lacks legal personality.

• It doesn’t provide legal services.

• It gives no warranty for the result.

🔍 When do risks or invalidity arise?

• Missing formal requirements (form, signatures, specific clauses)

• Ambiguous wording – unclear obligations or terms

• Non-compliance with local laws – e.g., consumer protection rules

• Ineffective clauses – AI doesn’t follow current case law or local legal practices

🛠️ What you can do:

• Have the AI draft reviewed by a lawyer

• For more important contracts, use a fully tailored legal service

• Don’t blindly trust “smart tools” that don’t account for legal consequences

📚 Real-life example:

A company used AI to create a framework agreement with a supplier.
Due to vague warranty language, the supplier avoided liability for defective goods. The court ruled in favor of the supplier – the “smart contract” didn’t protect the client.

✅ Lawyer’s recommendation:

AI can be a helpful assistant – but you bear the legal risk.
If a contract fails, the court won’t care who generated it – only what’s written in it matters.