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14 - Contract and Commercial Law Challenges with AI Products and Services

from Part III - Contracting and Dispute Resolution

Published online by Cambridge University Press:  08 February 2025

Stacy-Ann Elvy
Affiliation:
University of California, Davis
Nancy S. Kim
Affiliation:
Chicago-Kent College of Law
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Summary

The development of AI promises to increase innovation and facilitate advancements in multiple fields. Yet, as companies rush products to market in a race for dominance in this highly competitive field, the potential for widespread social harm is foreseeable. In the absence of legislation, commercial law and tort law provide standards and remedies governing new products; however, companies may alter these default laws by contract. This chapter argues that, until there are industry specific regulations governing AI products and services, adhesive contracts that alter the default rules of tort and commercial law should not be enforceable.

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