Managing the Human & AI Contract Interface (VIRTUAL) - AIV

Managing the Human & AI Contract Interface (VIRTUAL) - AIV

Course Summary

Technological adoption within the modern world is problematic on a number of grounds given the acceleration of development. Systems are outmoded with rapidity and a lack of standardization across many fields of commercial endeavour, posing a real issue of compatibility cross-system. The emergence of AI and its evolution within the ‘human space’ raises many questions as to the way forward – in both terms of practicality (i.e.: the removal of 3rd party verification mechanisms from commercial contracts, or the question of liability) and the impact upon the individual (i.e. redundancy, mental health issues). Whilst AI is most definitely a boon – it is not without both it’s limitations and challenges when utilized within the contractual medium. This programme has been specifically designed to provide the delegate with a holistic understanding of the range of issues and possible solutions to the growing role played by AI within the domain of commercial contractual interaction.

On completion of this course, delegates will:

• Become familiar with the issue of 3rd party verification and what it’s removal from commercial contracts might mean
• Grasp the scope of AI – what it can and cannot do at present
• Realise the relationship between key contractual components such as FM, termination and the role played by AI
• Grasp the ramifications of contractual breach and the AI interface
• Understand some of the key benefits of AI to negotiation
• Know the issues related to warranties associated with data accuracy
• Realise the potential difficulties for AI associated with cross cultural dealings
• Understand the potential problems associated with AI and liability/indemnity issues

Course Content

Introduction to AI contractual issues

• Dealing with contract opaqueness – how do we achieve clarity?
• Eliminating 3rd party verification – a dangerous precedent to establish?
• Eight key factors that determine contractual structure
• Integration and automation – what does the human future look like?
• Other societal impacts of AI – privacy; mental health
• Dealing with evolving legal structures/regulations – the question of governance
• Keeping the Genie in the Bottle - Six critical impacts on the human side of the interface

Understanding the ‘scope’ of AI

• The roles and tasks that AI can perform
• What AI cannot do
• The plus side of the equation – harnessing AI capabilities
• The minus side of the equation – skill fade;
• Human demotivation; compliance risk
• The critical importance of ‘scope’ – the role of AI
• Class exercise: ‘Subject to Contract’

AI and the contract

• Drafting – human and/or AI
• AI and contractual breach
• AI and damages
• AI and termination
• •AI and Force Majeure

Negotiation 

• The necessity of a human/AI hybrid approach
• Subjectivity vs. objectivity - the human/machine dichotomy
• Self-interest – a potential ‘ghost in the machine?’
• Anticipation and movement – who guides the process?
• AI and ‘trade-off’ behaviour
• AI in overcoming common problems in JV and collective/collaborative ventures
• The major benefits of AI to negotiation

Contractual provisions relating to risk and performance

• The five overarching risk management strategies
• Establishing the risk profile of a transaction
• The issue of time and performance guarantees
• Mechanisms for EOT’s
• Price; performance and time risk
• Inclusion or exclusion of warranty related to accuracy of data supplied – a loophole to exploit?

The challenges facing AI utilization

• The cultural dimension – differing normative value and belief systems
• Accent and language – communication dimensions
• Bias and AI ‘hallucinations’
• Ethical considerations (i.e. military applications)
• Liability and indemnity
• Compliance issues
• AI and criminal justice/medical diagnosis