Can AI Write Me a Contract?
Yes, AI can write a contract for you. Artificial intelligence (AI) is becoming increasingly integral to business processes, especially contract drafting by using advanced natural language processing (NLP) and machine learning algorithms.
These tools allow you to put key details about the contract, such as parties involved and payment terms, and the AI generates a tailored draft that can be reviewed and edited as needed.
One of the main benefits of using AI for contract drafting is the significant reduction in the time it takes to create a contract. By automating the initial draft, AI allows you to focus on refining the document rather than starting from scratch, leading to quicker contract finalisation.
How Do You Write a Contract With AI?
When preparing to input information into an AI tool for contract drafting, organising your data into clear, structured sections is essential for generating an accurate and comprehensive contract. Here’s a breakdown of the key information to input:
Parties Involved
Names and Details: Provide the names of all individuals or entities involved in the contract.
Roles and Responsibilities: Specify the roles each party will play and their respective responsibilities.
Contact Information: Include any relevant contact details if necessary for future correspondence.
Date and Duration
Date of Agreement: Indicate the date on which the contract is being created or agreed upon.
Contract Duration: Specify the start and end dates of the contract, or detail any terms related to the duration of the agreement.
Purpose of the Contract
Summary of Agreement: Clearly describe the main objective or purpose of the contract. This includes the specific transaction, service, or relationship being formalised.
Consideration
Details of Exchange: Provide information on what each party will exchange under the contract. This could include financial terms (amount and payment schedule), goods, services, or other forms of value.
Payment Terms: Include details on payment methods, deadlines, and conditions if money is involved.
Terms and Conditions
Obligations and Rights: Outline the specific obligations and rights of each party.
Rules and Guidelines: Include any rules governing the agreement, such as performance standards, deadlines, and compliance requirements.
Termination Conditions: Specify the conditions under which the contract can be terminated, and any notice periods or procedures required.
Dispute Resolution
Method of Resolution: Indicate how disputes will be resolved, such as through arbitration, mediation, or litigation.
Jurisdiction: Specify the legal jurisdiction that will govern the contract in case of a dispute.
Confidentiality and Non-Disclosure
Confidentiality Clauses: If applicable, include terms related to the confidentiality of information exchanged under the contract.
Non-Disclosure Requirements: Detail any restrictions on sharing or disclosing information.
Special Provisions: Include any additional clauses that are specific to the agreement, such as indemnity clauses, force majeure, or specific warranties.
Can AI Summarise a Contract?
Yes, if you copy contract terms into AI and ask it to summarise the content, it will be able to explain the key points to you. This can help in comprehending complex or vast amounts of information.
What Are The Risks Of AI in Contract Drafting?
There are a few risks that come with using AI when writing a contract yourself.
Privacy
One of the key issues for individuals is the fact that if you input personal information into an AI tool, it retains that information which could be later leaked or hacked leading to identity theft, fraud, and financial losses, causing substantial emotional distress.
Companies are increasingly cautious about using AI tools like ChatGPT due to these data security concerns, with some even restricting or banning their use to protect sensitive information.
On a societal level, AI privacy breaches can exacerbate systemic biases and inequalities. Biased or discriminatory AI algorithms may contribute to unfair treatment or the exclusion of certain groups, undermining public confidence in AI technologies. These breaches not only damage trust but also hinder the potential of AI to bring about positive social change.
Misinformation
AI systems rely on the data they’ve been trained on, which means any biases or inaccuracies in the input data can be reflected in the contracts they generate. This risk can lead to something known as AI hallucinations, where the AI may generate entirely fictitious information. An example of this occurred when lawyers submitted a legal brief generated by AI, which included fabricated quotes and court opinions, leading to fines and damaging their professional reputation.
Human Judgment
AI lacks the ability to understand context, emotion, or the subtleties of legal language, which can result in contracts that are technically accurate but miss the nuances that a human lawyer would catch. This can lead to misunderstandings, disputes, or even legal challenges, particularly in complex or high-stakes agreements where precision and personalisation are crucial.
AI offers significant benefits in contract drafting, particularly in terms of speed and language precision. However, its limitations in legal expertise, personalisation, and compliance highlight the need for human involvement. The most effective approach involves using AI to generate initial drafts, followed by a thorough review by a human lawyer. This ensures accuracy, legal validity, and compliance, while also addressing any client-specific questions or concerns. By combining the strengths of both AI and human expertise, this approach delivers a client-focused solution that maximises both efficiency and precision.
Streamline Your Contract Drafting with AI and Human Lawyers at Gerrish Legal
At Gerrish Legal, we’ve transformed the contract drafting process with our Contract Portal and the introduction of our AI bot, your personal digital lawyer. Our innovative tool allows you to effortlessly generate customised Service Agreements and Confidentiality Agreements by interacting with our intelligent bot.
By answering a series of tailored questions, the bot uses pre-drafted terms and clauses created by our experienced contract lawyers to quickly assemble a contract that meets your specific needs. This process not only saves time but also reduces the risk of errors, allowing you to access legal support whenever it’s convenient for you.
To ensure clarity and confidence in the final product, our clients can seek additional guidance or clarification from our human legal team after the contract is produced. With Gerrish Legal, you get the best of both worlds: the efficiency of AI and the personalised support of experienced lawyers. This approach guarantees a secure and reliable agreement, giving you peace of mind in your business dealings. Access our contract portal here to take advantage of our automated drafting tool, or schedule a 30-minute consultation with one of our human lawyers for tailored advice.
How Can Gerrish Legal Help?
Gerrish Legal is a dynamic digital law firm. We pride ourselves on giving high-quality and expert legal advice to our valued clients. We specialise in many aspects of digital law such as GDPR, data privacy, digital and technology law, commercial law, and intellectual property.
We give companies the support they need to successfully and confidently run their businesses whilst complying with legal regulations without the burdens of keeping up with ever-changing digital requirements.
We are here to help you, get in contact with us today for more information.