AI and the Law

Henry Thompson

Kyklos, 2026, vol. 79, issue 1, 70-82

Abstract: I argue that while generative artificial intelligence (AI) will speed up the rate at which tort law evolves, its effect on the evolution of property law and contract law will be less certain. To do so, I consider generative AI as a labor‐augmenting technology that reduces the cost of both writing more complete contracts and litigating in court. The contracting effect reduces the demand for court services by making contracts more complete. But the litigation effect boosts the demand for court services by (i) making contracts less complete and (ii) reducing litigants' incentive to settle. Where contracts are common, as in property and contract law, the change in the quantity of litigation is uncertain due to these effects offsetting. However, where contracts are rare, as in tort law, the amount of litigation is likely to rise. These results hold even when disputes vary in severity and when there is frivolous litigation.

Date: 2026
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Working Paper: AI and the law (2024)
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