Artificial Intelligence in Commercial Contracting: The Mediating Role of Governance and Ethical Considerations in Saudi Arabia
Keywords:
Artificial Intelligence, Commercial Contracting, Ethical Considerations.Abstract
This paper develops a conceptual framework that examines the role of artificial intelligence (AI) in commercial contract formation, focusing on the mediating influence of governance and ethical considerations. As AI continues to reshape legal processes by improving accuracy and efficiency, challenges such as bias, privacy concerns, and compliance with legal standards emerge, particularly in Saudi Arabia’s rapidly digitizing economy. This study identifies gaps in understanding how governance frameworks and ethical principles, including transparency, fairness, and accountability, moderate AI's impact on contract formation. The proposed model integrates AI, governance, and ethics, providing insights for policymakers, legal professionals, and businesses. The paper emphasizes the need for robust governance mechanisms and ethical oversight to ensure AI’s responsible application in commercial contracts. Finally, it offers practical recommendations for the Saudi Arabian legal system, addressing the unique legal and cultural factors that influence AI adoption in contract law.
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