Prepared by: Assist. Lecturer Zaid Abdul-Wahab The modern world is witnessing rapid technological development, one of the most prominent manifestations of which is the emergence of artificial intelligence (AI), which has become a fundamental pillar across various fields, particularly in the economic and legal spheres. AI applications have brought about substantial changes in the nature of commercial transactions, compelling commercial law to keep pace with these developments by adapting its legal rules to align with the new digital reality. Artificial intelligence refers to a set of technologies and systems that emulate human capabilities in reasoning, learning, data analysis, and decision-making. Its use has become widespread among companies and commercial institutions, where it is utilized for market analysis, risk management, drafting commercial contracts, detecting fraudulent activities, and improving the quality of services provided to consumers. Within the framework of commercial law, the increasing reliance on artificial intelligence has led to the emergence of new forms of commercial transactions, such as smart contracts, which are executed automatically once their conditions are fulfilled, and e-commerce, which relies on algorithms to manage buying and selling processes. This has helped reduce time and costs and increase the efficiency and speed of completing transactions. At the same time, however, it has raised numerous legal questions concerning the evidentiary value of electronic contracts, the validity of electronic consent, and the determination of legal liability when errors arise from intelligent systems. One of the most prominent challenges posed by artificial intelligence to commercial law is the issue of legal liability. Questions arise as to who should bear responsibility if an intelligent system causes harm to a third party: should liability fall upon the programmer, the manufacturer, or the user? Other challenges also arise concerning the protection of personal data, ensuring the confidentiality of commercial information, and protecting intellectual property rights in innovations generated by AI systems, in addition to the need to ensure transparency and prevent discrimination in decisions made by such systems. Therefore, it has become necessary for modern commercial legislation to move toward establishing a comprehensive legal framework governing the use of artificial intelligence in commercial activities and clearly defining legal responsibilities, while providing the necessary safeguards to protect parties involved in transactions and strengthen trust in the digital environment. States and international organizations should also cooperate in developing unified rules governing the use of artificial intelligence in international trade, thereby achieving a balance between promoting innovation and protecting rights. In conclusion, artificial intelligence can no longer be regarded merely as a technological tool; rather, it has become an influential factor in the development of commercial law and the reformulation of many of its traditional concepts. Accordingly, the successful utilization of this technology depends on the legislator’s ability to keep pace with technological developments by enacting flexible and progressive legislation that promotes justice, protects rights, and supports economic growth in the digital economy.