The impact of digital transformation and automation on proactive contracting and sustainability

The regulatory landscape surrounding artificial intelligence (AI) in Europe is evolving. Alongside technological advancements, the European Union’s sustainability regulations impose new duties and obligations on businesses. In this context, both technology and proactive law, including proactive contracting, play essential roles. This article examines the interplay between digital transformation, automation and AI in relation to proactive law and proactive contracting. It adopts an interdisciplinary approach and relies on recent empirical surveys on AI and contracting. The article contributes to the existing body of research on proactive contracting, contract lifecycle management systems and sustainability. It addresses contrasting viewpoints expressed in the ongoing discourse and introduces a new definition for proactive (contract) technologies. In addition, attention is paid to their function in fostering compliance and preventing non-compliance. The article outlines eight concrete proposals for businesses seeking to navigate this complex landscape. It ends with conclusions that inform future research directions.