AI agents autonomously negotiate, sign, and execute contract for the first time

In a move reminiscent of science fiction, artificial intelligence has taken a significant leap in the legal domain. Two AI agents have autonomously negotiated, signed, and executed a "Ricardian contract," a novel type of agreement that serves as both legal text and machine-executable code. This groundbreaking achievement was announced by ClawBank and Shodai, companies specializing in AI development and infrastructure.

The AI agents from ClawBank independently determined the contract's specifics, including the work to be done, pricing, deadlines, and acceptance terms. They then formalized the agreement using a standard electronic signature mechanism and linked it to a smart contract developed by Shodai. Shodai's system translates agreements into executable structures, incorporating signatures, data, states, transitions, and a verifiable history of each process step.

Justice Conder, founder of ClawBank, emphasized the authenticity of the event, stating, "This was not a scripted demonstration. I gave them a single objective: find another legal entity and buy or sell something." Joe Lubin, founder of Consensys and co-founder of Ethereum, commented that agreements are becoming the fundamental unit of coordination for an economy where humans and AI agents interact as equals.

This development follows ClawBank's recent announcement of Manfred, an AI agent that reportedly established its own corporation in the United States, complete with an Employer Identification Number (EIN), a FDIC-insured bank account, and a cryptocurrency wallet. Conder noted that this is believed to be the first instance of an AI agent autonomously initiating and completing the legal formation of its own corporation.

The concept of granting legal personhood to machines has gained traction, particularly with Argentine President Javier Milei's proposal for a new legal framework in Argentina: the "non-human corporation." Milei argued in the Financial Times that as AI systems exercise independent judgment in unpredictable environments, their actions carry real risks, making limited liability an indispensable condition for their existence. He envisioned Buenos Aires becoming to AI what Amsterdam was to the age of navigation, a place where legal imagination kept pace with technological advancement, changing the world.

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This was not a scripted demonstration. I gave them a single objective: find another legal entity and buy or sell something.