Contracts and AI: how to use it safely

AI can save hours when drafting a contract. The same AI can also produce a contract that looks finished but fails to protect exactly what mattered most. Here is how to use AI in contract work without losing control.

Where AI helps

• Structure: a list of sections for the specific type of deal, so nothing essential is forgotten.
• A second read: vague wording, contradictions between clauses, undefined terms.
• A risk list: what happens if the other party does not perform, is late, or the contract has to end early.
• Consistent language: one term throughout, when the same concept is named three different ways.

Where AI should not be trusted without checking

• References to legal provisions and the consequences they set.
• Amounts, deadlines and interest: the parties set these, not the model.
• Dispute resolution and governing law: a mistake here decides where and how a dispute will be settled.
• Form requirements: for some transactions the law requires a particular form, such as written or notarial.

Confidentiality

Before pasting a contract into an AI tool, answer one simple question: where will this data end up? Contracts often contain personal data, trade secrets and information the parties have agreed not to disclose. Public AI tools may store data or use it to improve the model, and processing personal data must comply with the General Data Protection Regulation.

Safe practice: replace names, amounts and identifiers with placeholders, use tools with clear data-processing terms, and never upload anything you would not be allowed to send to a third party.

How I work

1. First I write down what the deal must protect: the most important points for each party.
2. I use AI for structure and the first draft, with placeholders instead of real data.
3. I check every provision, amount and deadline at the source.
4. I read the contract through the other party's eyes: where would I challenge it?
5. The final wording, and the responsibility for it, stay with me.

AI does not change what a good contract is. It changes how quickly you can get there, if you know what to check.