10.47313 THE VALIDITY AND LEGAL RECOGNITION OF CONTRACTS MADE BY ARTIFICIAL INTELLIGENCE UNDER INDONESIAN LAW

THE VALIDITY AND LEGAL RECOGNITION OF CONTRACTS MADE BY ARTIFICIAL INTELLIGENCE UNDER INDONESIAN LAW

Abstract

In the era of globalization, the digital transformation era, the advancement of
Artificial Intelligence (AI) has enabled computer systems to perform cognitive
functions similar to human capabilities, including analyzing, drafting, and even
executing contracts autonomously. This technological shift has profoundly
influenced the paradigm of contract law in Indonesia, which traditionally adhered
to a classical normative approach and now faces the necessity to adapt to digital
innovations. This study examines the legal validity and recognition of contracts
created by or with the assistance of AI, particularly in reference to Articles 1320
and 1338 of the Indonesian Civil Code (KUHPerdata). Employing a normative
juridical method, the study analyzes primary and secondary legal sources and
compares selected international regulatory frameworks. The findings reveal that
while AI may enhance efficiency in contract formation, its non-human legal status
poses challenges regarding legal capacity, intent, and accountability. Thus, there is
a pressing need for specific regulations and reinforcement of legal principles, such
as legality and accountability, to ensure legal protection and certainty for all parties
involved in AI-assisted contracts under Indonesian law.
Keywords: contract validity, artificial intelligence, civil law, Indonesian legal
system, legality, accountability.