reskilling may be required. To that end, not all contract managers are likely to rise to the occasion in some circumstances. The impact of this job displacement can extend beyond individual jobs; rather, it can have wider societal implications, paving the way to further income inequality and contributing to unrest. Companies must proactively address these concerns with training programs and strategies for responsible implementation of contract artificial intelligence that prioritizes legal professionals’ well-being.
ETHICAL CONSIDERATIONS: BEYOND THE BOTTOM LINE Beyond the more practical and material concerns of bias and job replacement, AI in contract management raises fundamental ethical questions. Who is responsible when AI-driven contract management leads to a negative outcome, such as in negotiation? How do we ensure that contract intelligence engines are used ethically and responsibly? This issue of accountability is complicated. If an AI contract management system commits an error to the point of causing financial loss or legal liability, who will be responsible? Is it the developer, the company that deployed it, or the contract manager who utilized it?
20
TODAYSGENERALCOUNSEL.COM
Another problem is that the current lack of definite legal and regulatory parameters for AI makes assigning responsibility almost impossible. More daunting is that the possibility of misuse is a concern: AI-powered contract management software could be turned to take advantage of loopholes, be manipulated in terms, or give unfair advantages in contract negotiations. To ensure that AI is used in a responsible way requires commitment to transparency and accountability.
NAVIGATING THE FUTURE: A CALL FOR RESPONSIBLE CONTRACT AI IMPLEMENTATION The dark side of AI in contract management is not insurmountable. On the contrary—by acknowledging ethical and social implications while taking proactive steps to mitigate them—we can harness the power of AI for positive outcomes. We should:
Prefer to read this online? Click here. artificial intelligence. However, we must ensure that this transformation is guided by principles of ethics and commitment to the human business experience. By embracing responsible approaches to AI implementation, we can unlock the full potential of this powerful technology while mitigating its darker side.
Sean Heck is the Content Marketing Manager at CobbleStone Software. As an expert in contract lifecycle management software, Heck provides leading best practices, use cases, and thought leadership about the technology. He can be reached at s.heck@cobblestonesoftware.com.
• Prioritize ethical development of contract AI • Emphasize human oversight • Invest in training and reskilling • Develop clear legal and regulatory frameworks • Foster open dialogue and collaboration The present and future of contract management will surely be shaped by
MAY 2025
BACK TO CONTENTS
