Algorithmic contracts are already in use today, for example in the gaming industry: The user pays, and the game function is automatically unlocked without any human intervention. But the rise of AI system usage in many more fields of daily life, and the consequent application of algorithmic contracts in many other realms raises new questions. How about an algorithmic contract with regard to leasing a car. Should it be able to automatically block the steering wheel if the leasing rate was not paid?

The European Law Institute (ELI) initiated the project Guiding Principles and Model Rules on Algorithmic Contracts that focuses on the use of algorithmic decision-making systems in the various stages of the contract life cycle – from request to execution.

The goal of the project is to assess whether existing EU consumer law is sufficient to enable the proper fulfilment of algorithmic contracts, and to protect consumers and the rights of all interested parties; further, the project aims to identify gaps in existing law, and make suggestions to appropriately fill them where they exist. 

Rania's role as project team member is to provide AI expertise, assist in the development of scenarios for the use of algorithmic contracts, and help assess the feasibility and effectiveness of proposed legal safeguards from a technical perspective.

Link to project website:

Algorithmic Contracts (europeanlawinstitute.eu)

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