Incorporating Generative AI into a Contract Negotiation Exercise

This teaching note describes a contract negotiation exercise that integrates generative artificial intelligence (GAI) into an undergraduate Legal Environment of Business course. Students work in teams to review a fictional licensing scenario, negotiate terms with another team, and draft a final agreement. Along the way, they use GAI tools for idea generation, drafting, and evaluation. It emphasizes both the substance of contract law and the interpersonal skills required for successful negotiation. While the agreements produced are not ready for use without legal review, students gain practical experience with real‐world processes.