Artificial intelligence (AI) is not perfect but it can help make legal contracts in several ways:
AI can generate contract templates or draft contract clauses based on predefined parameters and legal rules. Natural language processing (NLP) algorithms analyze legal texts and extract relevant information to create customized contracts. This can save time for legal professionals by automating the initial drafting process. However, we prefer using our own templates that have been improved for years and we can use AI to make them even better.
AI-powered contract analysis tools can review and analyze large volumes of contracts. Machine learning algorithms can identify key terms, clauses, and potential risks, allowing legal professionals to focus on critical areas that require attention. This speeds up the contract review process and reduces the chances of errors or omissions.
AI can assist in contract negotiation by analyzing the positions of the parties involved and suggesting possible compromises. By analyzing historical data and patterns, AI algorithms can provide insights on negotiation strategies and help identify areas of potential agreement or contention. This can facilitate more efficient and effective negotiations. We wrote an article how AI can help in negotiation skills.
AI can assist in conducting legal research to gather relevant information and precedents for contract drafting and negotiation. Natural language processing algorithms can analyze vast amounts of legal data, such as case law, statutes, and regulations, and provide legal professionals with accurate and up-to-date information.
AI can assess the risks associated with contractual terms and conditions by analyzing historical data and patterns. It can identify potential risks, such as ambiguous or inconsistent clauses, non-standard terms, or unusual provisions, helping legal professionals make informed decisions during contract creation or negotiation.
Monitor contract compliance
AI can monitor contract compliance by tracking contract-related activities and data from various sources. By leveraging technologies like blockchain and IoT devices, AI algorithms can verify performance, delivery, or payment milestones and trigger notifications for potential breaches or non-compliance.
AI can streamline the entire contract lifecycle, from creation to execution and management. It can automate routine contract administration tasks, such as tracking renewal dates, managing amendments, and ensuring compliance. This improves efficiency, reduces administrative burden, and minimizes the risk of overlooking critical contractual obligations.
Double check by legal professionals
While AI can provide significant benefits in contract-related tasks, it’s important to note that legal professionals play a vital role in overseeing and validating the AI-generated outputs. They ensure the accuracy, legality, and ethical considerations of AI-generated contracts and are ultimately responsible for their enforceability within the applicable legal framework.
Your documents is not done by robots, do not worry. They are done by professionals, under the supervisions of Thai registered lawyers. Technology is used to be more efficient.