The rapid integration of artificial intelligence (AI) in legal technology is transforming business law practices, particularly in contract negotiations and dispute resolution. This study examines the impact of AI-powered legal tech on efficiency, accuracy, and compliance in business law. The research utilizes a qualitative approach, analyzing secondary data sources, including legal reports, case studies, and empirical studies from 2020 to 2024. Findings indicate that AI-powered contract review tools have reduced contract processing time by 50%, with a statistically significant correlation coefficient (r = 0.97) between AI adoption and legal efficiency. Additionally, AI-driven legal analytics improve risk assessment accuracy, increasing predictive litigation accuracy from 65% in 2020 to 80% in 2024. Regression analysis reveals that investment in AI-powered legal technology strongly correlates with AI adoption growth (r = 0.99), highlighting the increasing reliance on AI tools. Despite these advancements, challenges remain, including regulatory concerns, algorithmic biases, and data privacy risks. The study recommends establishing comprehensive legal frameworks to regulate AI-driven legal processes, enhancing transparency in AI decision-making, and promoting ethical AI practices. Future research should explore AI’s role in standardizing contract negotiations across jurisdictions while mitigating ethical and compliance risks.