When Algorithms Encounter Contractual Mistakes: Insights from Frattone
The Legal Implications of Algorithmic Errors in Contract Formation
As contracting becomes increasingly automated, the potential for algorithmic errors raises significant legal questions. Specifically, can contract law accommodate mistakes generated by algorithms, and who bears the responsibility?
Frattone distinguishes between automation mistakes, which arise from technical failures, and autonomy mistakes, where the AI's decision-making leads to erroneous outcomes despite proper functioning.
Current legal frameworks typically require a mistake to concern existing facts and be recognizable to all parties involved; however, Frattone argues that some automation mistakes can still be framed within this structure as erroneous assumptions.
A key challenge lies in determining accountability for these mistakes: is it the programmers, the deployers, or the systems themselves who are legally liable?
Watch the video for a deeper dive into Frattone’s analysis and proposals regarding the future of contract law in the age of automation.
