The Impact of Artificial Intelligence and Blockchain Technology on the Legal Liability of Transnational Corporations in International Transactions: Challenges and Emerging Legal Solutions
Keywords:
Artificial Intelligence, Blockchain, Legal Liability, Transnational Corporations, Smart Contracts, Limited Legal Personality, Mandatory Algorithmic InsuranceAbstract
In the digital era, emerging technologies such as artificial intelligence (AI), blockchain, and smart contracts have fundamentally transformed the traditional structure of commercial transactions and the conceptualization of legal liability for transnational corporations. While these technologies enhance efficiency and transparency and reduce transaction costs, they simultaneously raise novel legal questions concerning the legal personality of machines, the establishment of causation, the allocation of liability across production and supply chains, and the legal validity of self-executing contracts. Accordingly, in light of the unprecedented integration of these technologies into international commercial agreements, this article seeks to develop a coherent legal framework governing the liability of transnational corporations and to bridge the gap between technological efficiency and the traditional principles of contract law. This study adopts an analytical–critical approach and relies on library-based sources and international legal instruments to examine the legal challenges arising from automated decision-making, the role of oracles, algorithmic discrimination, and regulatory deficiencies within both the Iranian legal system and international legal frameworks. The findings indicate that the absence of a clear legal framework regarding the legal personality of artificial intelligence, risk-based civil liability, and ex ante oversight of algorithms has contributed to persistent regulatory uncertainty and diminished investor confidence. Finally, the article proposes several innovative legal solutions, including the recognition of a limited legal personality for intelligent systems, the establishment of mandatory insurance funds, the development of algorithmic transparency standards, and the creation of a specialized supervisory authority for artificial intelligence. These measures are intended to preserve fundamental legal principles while fostering innovation and ensuring legal certainty for commercial actors.
References
Al-Sadat Makki, A., Al-Sadat Makki, Z., & Kashkoulian, E. (2024). An Examination of Liability Arising from Artificial Intelligence Acts in the Iranian Legal System. Scientific Journal of Jurisprudence, Law and Criminal Sciences, 8(32), 71-79.
Alijani, M., & Joneidi, L. (2020). Risk Allocation in Public-Private Partnership Contracts. Specialized Quarterly of Legal Encyclopedias, 3(8), 102.
Bagheri, P. (2025). Legal Personality and Civil Liability of Artificial Intelligence: Legal Challenges and Solutions. Scientific-Research Quarterly of Private Law, 13(51), 47-82.
Barikloo, A., & Khazaei, S. A. (2011). The Principle of Good Faith and Its Consequences in the Pre-Contractual Period: A Comparative Study in English and French Law. Judiciary Law Journal, 75(76), 53-87.
Binns, R. (2018). Fairness in Machine Learning: Lessons from Political Philosophy. Proceedings of Machine Learning Research,
Bradford, A. (2020). The Brussels Effect: How the European Union Rules the World. Oxford University Press.
Brownsword, R. (2019). Law, Technology and Society: Reimagining the Regulatory Environment. Routledge.
Corda, A. (2021). Smart Contracts and Legal Enforcement: A Comparative Analysis. Journal of Law & Technology, 34(2), 123-145.
De Filippi, P., & Wright, A. (2018). Blockchain and the Law: The Rule of Code. Harvard University Press.
Dehghani Tafti, M. (2021). A Comparative Study of the Governing Law of Digital Smart Contracts from the Perspective of Private International Law in the Iranian Legal System and the Rome I Regulation. Biannual Scientific Journal of New Technologies Law, 2(4), 203-225.
Dehghani Tafti, M., Afzali Mehr, M., & Eskini, R. (2022). A Comparative Study of the Legal Requirements for Designing Digital Smart Contracts in Iranian and French Law. Comparative Law Research Quarterly, 6(2), 29-51.
Dev.to. (2025). AI Legislation and Regulation: Navigating the Future of Artificial Intelligence. 4-5. https://dev.to/siddharthbhalsod/ai-legislation-and-regulation-navigating-the-future-of-artificial-intelligence-4p65
Doshi-Velez, F., & Kim, B. (2017). Towards a Rigorous Science of Interpretable Machine Learning.
Dwork, C., & Mulligan, D. K. (2013). It's Not Privacy, and It's Not Fair. Stanford Law Review Online, 66, 35-40.
Esmaeilpour, M. A. (2024). Feasibility of Using Artificial Intelligence in Evaluating Arbitral Evidence under Transnational Rules. Journal of Legal Research, 25(67), 10-25.
Gabov, A. V., & Khavanova, I. A. (2018). Evolution of Robots and the 21st-Century Law. Tomsk State University Journal(435), 215-233. https://doi.org/10.17223/15617793/435/28
Ghorbani, Z. (2023). The Role of Artificial Intelligence in the Conclusion of Electronic Contracts. Second International Conference on Advocacy, Law and Humanities,
Katouzian, N. (2019). Civil Law: Persons and Contracts (9th ed.). Mizan Publishing.
Keshtkar, Z., & Hajilou, A. (2024). The Impact of Using Artificial Intelligence in International and Domestic Arbitration (1st ed.). Mashareq al-Anwar Publications.
Masoumi Jenaghard, I., & Zarei, G. (2024). Consequences and Effects of Using Artificial Intelligence in Commercial Contracts from Tourism, Legal, and Commercial Perspectives. Journal of Geography and Human Relations, 7(3), 542.
Parizad, R., & Saeedi, A. (2024). The Metaverse and the Use of Artificial Intelligence in Global Trade, with Emphasis on the Metaverse. Scientific Journal of New Research Approaches in Management and Accounting, 8(28), 1891-1921.
Porter, Z. (2023). Unravelling Responsibility for AI.
Rashvand Boukani, M., & Naser, M. (2019). The Intention of Contracting Parties in Smart Contracts: Conditions of Validity and Methods of Ascertainment. Biannual Scientific Journal of Islamic Law Research, 20(1), 271-300.
Raskin, M. (2017). The Law and Legality of Smart Contracts. Georgetown Law Technology Review, 1(2), 305-341.
Schulz, W., Helberger, N., & van Drunen, M. (2023). International Governance of AI: Current Frameworks and Challenges. Journal of International Law & Technology, 11(1), 35-40.
Shahbazinia, M., & Zolghadr, M. J. (2024). Feasibility of Granting Legal Personality to Artificial Intelligence: A Policy Proposal for the Iranian Legislator. Science and Technology Policy, 17(3), 12-24.
Springer, S. N. (2023). Hybrid Theory of Corporate Legal Personhood and Its Application to AI. Sn Social Sciences, 3(78), 1-13. https://doi.org/10.1007/s43545-023-00667-x
Surden, H. (2019). Artificial Intelligence and Law: An Overview. Georgia State University Law Review, 35(4), 817-835.
Susskind, R. (2022). Online Courts and the Future of Justice. Oxford University Press.
Susskind, R., & Susskind, D. (2015). The Future of the Professions. Oxford University Press.
Szabo, N. (1997). Formalizing and Securing Relationships on Public Networks. First Monday, 2(9).
Vasiliev, V., & Ibragimov, A. (2019). Liability of Artificial Intelligence in the Age of Robotics. Journal of Digital Law, 21(4), 234-246.
Voynikas, E. (2020). Legal Regulation of Robotics and Artificial Intelligence in the European Union. Russian-Asian Legal Journal(1), 50-54.
Wachter, S., Mittelstadt, B., & Floridi, L. (2017). Transparent, Explainable, and Accountable AI for Robotics. Science Robotics, 2(6), eaap6962.
Ward, F. R. (2025). Towards a Theory of AI Personhood.
Zakerinia, H. (2023). Nature and Basis of Civil Liability Arising from AI in Iran and EU Countries. Private Law Journal, 1(20), 50-65.
Zarepour, S., & Ahmadi Harandi, A. H. (2021). An Examination of Negotiations and Pre-Contractual Liability in Iranian Law. Sixth International Conference on Jurisprudence and Law, Advocacy and Social Sciences,
Zarsky, T. (2017). Incompatible: The GDPR in the Age of Big Data. Seton Hall Law Review, 47(4), 995-1020.
Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. (2020). Decentralized Finance. Journal of Financial Regulation, 6(2), 172-203.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Ghader Nouri (Author); Jalal Jafari
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
