The Legal Challenges of Regulating Artificial Intelligence in Commercial Transactions

Authors: Chineze Hildagard Desmond-Ihekaire, Ph.D, FCArb

Affiliation: Department of Public and Private Law, Faculty of Law, Federal University Otuoke, Bayelsa State, Nigeria.

Corresponding Author: [email protected]

May 21, 2026

SIAR-Global Journal of Social Sciences & Legal Review

Zenodo DOI: 10.5281/zenodo.20325751

Crossref DOI: 10.66694/siar.gjsslr20262003

The Legal Challenges of Regulating Artificial Intelligence in Commercial Transactions
Review Article Social Sciences

Abstract

As commerce increasingly integrates digital technologies, Artificial Intelligence (AI) plays a pivotal role in enhancing mercantile efficiency, decision-making, and customer engagement. This paper explores the transformative and far-reaching impact of AI on commercial transactions, emphasizing its growing significance in modern business environments as well as its legal challenges. This study adopted the doctrinal research method, analyzing existing literature and real-world applications to evaluate how AI technologies affect contract formation, performance, and enforcement in commercial settings. Findings indicate that AI systems contribute to faster, more accurate transaction processing, especially through smart contracts and predictive analytics. However, their use also raises legal and ethical concerns, particularly regarding liability, privacy, and contract enforceability when autonomous response systems and automated decision-making technologies are involved. Current legal systems often struggle to keep pace with the rapid development of AI technologies, creating regulatory and legislative gaps. The paper concludes that while AI holds great potential to revolutionize commercial transactions, its adoption must be accompanied by robust legal reforms and governance structures. It recommends that governments should consider drafting AI-specific laws  AI-specific laws that define liability, standards of care, and operational boundaries for AI systems. These laws must clearly assign responsibility for harms caused by autonomous systems and ensure that legal accountability cannot be evaded due to the complexity of AI decision-making.

Keywords

Artificial Intelligence; Consumer Protection; Digital Contract; Automated Decision making; Challenges

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How to Cite

Chineze Hildagard Desmond-Ihekaire, Ph.D, FCArb (2026). The Legal Challenges of Regulating Artificial Intelligence in Commercial Transactions. SIAR-Global Journal of Social Sciences & Legal Review, Vol. 2, No. 2. DOI: 10.5281/zenodo.20325751

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Article Information

  • Type: Review Article
  • Journal: SIAR-Global Journal of Social Sciences & Legal Review
  • Subject Area: Social Sciences
  • Published: May 21, 2026
  • Volume: 2
  • Issue: 2
  • Word Count: Not specified
  • DOI: 10.5281/zenodo.20325751
  • Processing Fee: $50.00 USD

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