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.