The Impact of Artificial Intelligence on the Formation of Commercial Contracts: The Mediating Role of Ethical Considerations in the Kingdom of Saudi Arabia

Abstract

This study investigates the impact of Artificial Intelligence (AI) capabilities on Commercial Contract Formation (CCC) with Ethical Considerations (EC) as a mediating variable among Saudi startups. The research aims to explore how AI-driven systems enhance contractual efficiency and transparency while emphasizing the importance of ethical responsibility in digital transformation. Using a quantitative approach, data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that AI capabilities significantly and positively influence both EC and CCC, while EC also demonstrates a significant mediating effect between AI and CCC. These findings highlight that ethical frameworks strengthen the positive impact of AI on contract formation by promoting fairness, accountability, and trust in automated decision-making. The study contributes to the growing body of literature on ethical AI governance and offers practical insights for organizations seeking to balance innovation and integrity in AI-enabled contracting systems aligned with Saudi Vision 2030.