Artificial Intelligence – A Legal Perspective with Special Regard to Contract Law and Smart Contracts

Abstract

The rapid evolution of information technology in the past century has led to the emergence of increasingly complex contractual relationships, prompting legal scholars to explore the intersection of automation and contracts. With the emergence of Artificial Intelligence (AI), the legal landscape faces new challenges and opportunities, particularly regarding smart contracts. This paper outlines the legal framework governing AI in the European Union and delves into the implications of technological developments for contract law, focusing on smart contracts in Hungarian and Serbian law. The European Union has taken proactive steps in regulating AI in alignment with societal welfare, fundamental rights, and ethical considerations. In Hungary and Serbia, the legal recognition of electronic contracts lays the foundation for integrating advanced technologies like smart contracts. Serbian legislation has made significant strides in explicitly permitting and regulating smart contracts through the Act on Digital Property. The emergence of smart contracts presents novel challenges to traditional contract law, including issues of code interpretation, accountability for coding errors, and the need for regulatory frameworks to oversee implementation. Despite these challenges, the adoption of smart contracts offers streamlined execution, transparency, and increased efficiency in contractual processes, paving the way for a more digitally driven legal landscape.