Challenges of Using Artificial Intelligence in Contract Drafting: How Should AI Legal Liability Be?
Abstract
Artificial Intelligence (AI) in law is applied to contract drafting. The presence of AI makes it easier for people in contract drafting and, of course, can be used by contract drafters to facilitate their work. Nevertheless, AI's actions can cause losses to the users and all parties involved. The potential for a cyberattack could happen. Meanwhile, Indonesian law does not regulate legal liability against AI. Based on this background, this study is about the use of AI in contract drafting. This research falls within the category of normative research. Data collection is done by collecting legal materials such as laws, writings, books, and journals related to contract drafting. Technical analysis of legal material is done in a qualitative descriptive manner. The use of AI in contract drafting using smart contract features is provided by Legal Tech. The presence of AI in the legal area provides ease, efficiency, and effectiveness in the completion of contract drafting. However, any substitution between human resources and AI is potentially damaging and can easily leak the parties' personal information. While Indonesian law has not reached legal liability for the actions of AI; therefore, the analysis of AI's legal liability is carried out with the approach of the Vicarious Liability doctrine.
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References
Journal
Aprilia, D. E., Hidayatullah, N. A., & Iswan, M. (2021). Tinjauan Hukum Terhadap Perjanjian Nominee yang Diberikan Secara Lisan. Lex Suprema, 3(1), 783–802.
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Budi, E., Wira, D., & Infantono, A. (2021). Strategi Penguatan Cyber Security Guna Mewujudkan Keamanan Nasional di Era Society 5.0. Prosiding Seminar Nasional Sains Teknologi dan Inovasi Indonesia (SENASTINDO), 3, 223–234. doi: 10.54706/senastindo.v3.2021.141
Čerka, P., Grigienė, J., & Sirbikytė, G. (2015). Liability for Damages Caused by Artificial Intelligence. Computer Law & Security Review, 31(3), 376–389. doi: 10.1016/j.clsr.2015.03.008
Darmawan, M. I., & Suryawati, N. (2023). Analisa Yuridis rentang Perjanjian Sewa Menyewa Tanpa Batas Waktu. Law, Development and Justice Review, 6(2), 180–199. doi: 10.14710/ldjr.6.2023.180-199
Firdaus, D. H. (2020). Aplikasi Smart Contract dalam E-Commerce Prespektif Hukum Perjanjian Syariah. Jurnal Qolamuna, 6(1), 37-54.
Haris, M. T. A. R., & Tantimin, T. (2022). Analisis Pertanggungjawaban Hukum Pidana Terhadap Pemanfaatan Artificial Intelligence di Indonesia. Jurnal Komunikasi Hukum (JKH), 8(1), 307–316. doi: 10.23887/jkh.v8i1.44408, p. 312
Hofmann, E., & Rüsch, M. (2017). Industry 4.0 and the Current Status as Well as Future Prospects on Logistics. Computers in Industry, 89, 23–34. doi: 10.1016/j.compind.2017.04.002
Kurniawijaya, A., Yudityastri, A., & Zuama, A. P. C. (2021). Pendayagunaan Artificial Intelligence dalam Perancangan Kontrak Serta Dampaknya Bagi Sektor Hukum di Indonesia. Khatulistiwa Law Review, 2(1), 260–279. doi: 10.24260/klr.v2i1.108, p. 260
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Muhardono, A. (2023). Penerapan Algoritma Breadth First Search dan Depth First Search pada Game Angka. Jurnal Minfo Polgan, 12(1), 171–182. doi: 10.33395/jmp.v12i1.12340, p. 172
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Rifaldi, A., & Adjie, H. (2022). Minuta Akta Notaris dalam Bentuk Elektronik. Hukum Bisnis, 6(1), 716
Rosadi, S. D. (2020). Pengaturan Smart Contract di Berbagai Negara. Buletin Hukum Kebanksentralan, 17(1), 96.
Salmerón-Manzano, E. (2021). Legaltech and Lawtech: Global Perspectives, Challenges, and Opportunities. Laws, 10(2), 61-69. doi: 10.3390/laws10020024
Satya, V. E. (2018). Strategi Indonesia Menghadapi Industri 4.0. Info Singkat, 10(9), 19–24. Available from https://www.bikinpabrik.id/wp-content/uploads/2019/01/Info-Singkat-X-9-I-P3DI-Mei-2018-249.pdf
Setiawan, K., Prakoso, B., & Ali, M. (2022). Notaris dalam Pembuatan Akta Kontrak yang Berlandaskan Prinsip Kehati-Hatian, Jurnal Ilmu Kenotariatan, 2(2), 43. doi: 10.19184/JIK.v2i2.20919
Sinaga, N. A., & Sulisrudatin, N. (2017). Hal – Hal Pokok dalam Pembuatan Suatu Kontrak. Jurnal Ilmiah Hukum Dirgantara, 7(2), 110–119. doi: 10.35968/jh.v7i2.134
Surden, H. (2014). Machine Learning and Law. Washington Law Review, 89(1), 87–115. Available from https://digitalcommons.law.uw.edu/wlr/vol89/iss1/5
______, H. (2019). Artificial Intelligence and Law: An Overview. Georgia State University Law Review, 35(4). Available from https://ssrn.com/abstract=3411869.
Szabo, N. (1996). Smart Contracts: Building Blocks for Digital Markets. EXTROPY: The Journal of Transhumanist Thought, 18(2).
Tsang, L. et al. (2017). The Impact of Artificial Intelligence on Medical Innovation in the European Union and United States. Intellectual Property & Technology Law Journal, 29(8), 1-8. Available from https://www.arnoldporter.com/~/media/files/perspectives/publications/2017/08/the-impact-of-artificial-inteelligence-on-medical-innovation.pdf
Wulandari, A. S. R., & Basir, A. (2020). Penerapan Prinsip Bagi Hasil pada Pembiayaan di Bank Syariah Menurut Undang-Undang Perbankan Syariah. Khatulistiwa Law Review, 1(1), 61–76. doi: 10.24260/klr.v1i1.31
Yogaswara, R. (2019). Artificial Intelligence sebagai Penggerak Industri 4.0 dan Tantangannya Bagi Sektor Pemerintah dan Swasta. Masyarakat Telematika Dan Informasi : Jurnal Penelitian Teknologi Informasi dan Komunikasi, 10(1), 67-72.
Yudoprakoso, P. W. (2019). Kecerdasan Buatan Sebagai Alat Bantu Proses Penyusunan Undang-Undang dalam Upaya Menghadapi Revolusi Industri 4.0 di Indonesia. Simbur Cahaya, 25(2), 134–148.
Thesis
Baihaiqi, M. R. (2022). Tinjauan Yuridis Penerapan Smart Contract di Indonesia Sebagai Bentuk Perkembangan Kecerdasan Buatan (Artificial Intelligence). Thesis, Master’s Program Notariary, Universitas Islam Sultan Agung.
Website
Yıldırım, S. (2020). Data Leakage in Machine Learning. Available from https://towardsdatascience.com/data-leakage-in-machine-learning-6161c167e8ba.
Aprilia, D. E., Hidayatullah, N. A., & Iswan, M. (2021). Tinjauan Hukum Terhadap Perjanjian Nominee yang Diberikan Secara Lisan. Lex Suprema, 3(1), 783–802.
Belani, S. (2023). Artificial Intelgence Sebuah Inovasi Baru Menjual Produk (Membandingkan Keunggulan FB, WA, Instagram, Telegram dan Youtube). Lentera: Multidisciplinary Studies, 1(2), 111–118. doi: 10.57096/lentera.v1i2.28, p. 111
Bhora, D., & Shravan, K. (2019). Demystifying the Role of Artificial Intelligence in Legal Practice. Nirma University Law Journal, 8(2), 1–13. Available from https://ssrn.com/abstract=3443000.
Budi, E., Wira, D., & Infantono, A. (2021). Strategi Penguatan Cyber Security Guna Mewujudkan Keamanan Nasional di Era Society 5.0. Prosiding Seminar Nasional Sains Teknologi dan Inovasi Indonesia (SENASTINDO), 3, 223–234. doi: 10.54706/senastindo.v3.2021.141
Čerka, P., Grigienė, J., & Sirbikytė, G. (2015). Liability for Damages Caused by Artificial Intelligence. Computer Law & Security Review, 31(3), 376–389. doi: 10.1016/j.clsr.2015.03.008
Darmawan, M. I., & Suryawati, N. (2023). Analisa Yuridis rentang Perjanjian Sewa Menyewa Tanpa Batas Waktu. Law, Development and Justice Review, 6(2), 180–199. doi: 10.14710/ldjr.6.2023.180-199
Firdaus, D. H. (2020). Aplikasi Smart Contract dalam E-Commerce Prespektif Hukum Perjanjian Syariah. Jurnal Qolamuna, 6(1), 37-54.
Haris, M. T. A. R., & Tantimin, T. (2022). Analisis Pertanggungjawaban Hukum Pidana Terhadap Pemanfaatan Artificial Intelligence di Indonesia. Jurnal Komunikasi Hukum (JKH), 8(1), 307–316. doi: 10.23887/jkh.v8i1.44408, p. 312
Hofmann, E., & Rüsch, M. (2017). Industry 4.0 and the Current Status as Well as Future Prospects on Logistics. Computers in Industry, 89, 23–34. doi: 10.1016/j.compind.2017.04.002
Kurniawijaya, A., Yudityastri, A., & Zuama, A. P. C. (2021). Pendayagunaan Artificial Intelligence dalam Perancangan Kontrak Serta Dampaknya Bagi Sektor Hukum di Indonesia. Khatulistiwa Law Review, 2(1), 260–279. doi: 10.24260/klr.v2i1.108, p. 260
Kusumawati, R. (2018). Kecerdasan Buatan Manusia (Artificial Intelligence); Teknologi Impian Masa Depan. ULUL ALBAB Jurnal Studi Islam, 9(2), 257-274. doi: 10.18860/ua.v9i2.6218
Muhammad, D. (2019). Karakteristik Perjanjian Jual Beli dengan Smart Contract dalam E-Commerce. Jurist-Diction, 2(5).
Muhardono, A. (2023). Penerapan Algoritma Breadth First Search dan Depth First Search pada Game Angka. Jurnal Minfo Polgan, 12(1), 171–182. doi: 10.33395/jmp.v12i1.12340, p. 172
Muhtarom, M. (2014). Asas - Asas Hukum Perjanjian : Suatu Landasan dalam Pembuatan Kontrak. Suhuf, 26(1), 48–56. Avaiable from http://hdl.handle.net/11617/4573.
Muneeza, A., & Mustapha, Z. (2020) The Potential of Fintech in Enhancing the Use of Salam Contract in Islamic Banking. International Journal of Islamic Economics and Finance (IJIEF), 3(2), 305–334. doi: 10.18196/ijief.3231
Priowirjanto, E. S. (2022). Urgensi Pengaturan Mengenai Artificial Intelligence pada Sektor Bisnis Daring dalam Masa Pandemi Covid-19 di Indonesia. Jurnal Bina Mulia Hukum, 6(2), 254–272. doi: 10.23920/jbmh.v6i2.355
Rifaldi, A., & Adjie, H. (2022). Minuta Akta Notaris dalam Bentuk Elektronik. Hukum Bisnis, 6(1), 716
Rosadi, S. D. (2020). Pengaturan Smart Contract di Berbagai Negara. Buletin Hukum Kebanksentralan, 17(1), 96.
Salmerón-Manzano, E. (2021). Legaltech and Lawtech: Global Perspectives, Challenges, and Opportunities. Laws, 10(2), 61-69. doi: 10.3390/laws10020024
Satya, V. E. (2018). Strategi Indonesia Menghadapi Industri 4.0. Info Singkat, 10(9), 19–24. Available from https://www.bikinpabrik.id/wp-content/uploads/2019/01/Info-Singkat-X-9-I-P3DI-Mei-2018-249.pdf
Setiawan, K., Prakoso, B., & Ali, M. (2022). Notaris dalam Pembuatan Akta Kontrak yang Berlandaskan Prinsip Kehati-Hatian, Jurnal Ilmu Kenotariatan, 2(2), 43. doi: 10.19184/JIK.v2i2.20919
Sinaga, N. A., & Sulisrudatin, N. (2017). Hal – Hal Pokok dalam Pembuatan Suatu Kontrak. Jurnal Ilmiah Hukum Dirgantara, 7(2), 110–119. doi: 10.35968/jh.v7i2.134
Surden, H. (2014). Machine Learning and Law. Washington Law Review, 89(1), 87–115. Available from https://digitalcommons.law.uw.edu/wlr/vol89/iss1/5
______, H. (2019). Artificial Intelligence and Law: An Overview. Georgia State University Law Review, 35(4). Available from https://ssrn.com/abstract=3411869.
Szabo, N. (1996). Smart Contracts: Building Blocks for Digital Markets. EXTROPY: The Journal of Transhumanist Thought, 18(2).
Tsang, L. et al. (2017). The Impact of Artificial Intelligence on Medical Innovation in the European Union and United States. Intellectual Property & Technology Law Journal, 29(8), 1-8. Available from https://www.arnoldporter.com/~/media/files/perspectives/publications/2017/08/the-impact-of-artificial-inteelligence-on-medical-innovation.pdf
Wulandari, A. S. R., & Basir, A. (2020). Penerapan Prinsip Bagi Hasil pada Pembiayaan di Bank Syariah Menurut Undang-Undang Perbankan Syariah. Khatulistiwa Law Review, 1(1), 61–76. doi: 10.24260/klr.v1i1.31
Yogaswara, R. (2019). Artificial Intelligence sebagai Penggerak Industri 4.0 dan Tantangannya Bagi Sektor Pemerintah dan Swasta. Masyarakat Telematika Dan Informasi : Jurnal Penelitian Teknologi Informasi dan Komunikasi, 10(1), 67-72.
Yudoprakoso, P. W. (2019). Kecerdasan Buatan Sebagai Alat Bantu Proses Penyusunan Undang-Undang dalam Upaya Menghadapi Revolusi Industri 4.0 di Indonesia. Simbur Cahaya, 25(2), 134–148.
Thesis
Baihaiqi, M. R. (2022). Tinjauan Yuridis Penerapan Smart Contract di Indonesia Sebagai Bentuk Perkembangan Kecerdasan Buatan (Artificial Intelligence). Thesis, Master’s Program Notariary, Universitas Islam Sultan Agung.
Website
Yıldırım, S. (2020). Data Leakage in Machine Learning. Available from https://towardsdatascience.com/data-leakage-in-machine-learning-6161c167e8ba.
Published
2024-08-31
How to Cite
SUBAWA, I Made Mulyawan.
Challenges of Using Artificial Intelligence in Contract Drafting: How Should AI Legal Liability Be?.
Kertha Patrika, [S.l.], v. 46, n. 2, p. 143-156, aug. 2024.
ISSN 2579-9487.
Available at: <https://ojs.unud.ac.id/index.php/kerthapatrika/article/view/113769>. Date accessed: 21 nov. 2024.
doi: https://doi.org/10.24843/KP.2024.v46.i02.p03.
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