Over the past few months, the legal technology sector has experienced a veritable explosion of AI-powered contract analysis tools, largely driven by the advanced capabilities of AI models like ChatGPT and similar technologies. This recent surge of contract analysis products built on machine learning and natural language processing streamlines and simplifies the traditionally laborious process of contract drafting and review.
The adaptive nature of contract analysis software enables it to continuously learn from newly added contracts, such as nondisclosure or employment agreements. The system then leverages this knowledge to evaluate user-submitted contracts, contrasting them with a wide variety of related documents stored in its database.
If your legal practice involves frequent contract review, it would be a mistake to overlook the advantages that these software solutions offer. The introduction of GPT-enabled functionality into this category of software has the potential to dramatically impact the way attorneys handle contract work, resulting in substantial savings in both time and resources.
In prior articles, I’ve written about AI-based contract analysis tools; however, the market has evolved dramatically since my initial coverage of the software category in 2018, in large part due to the generative AI boom. Because AI technology has rapidly matured in recent months, several AI-powered options for contract analysis have emerged for legal professionals seeking to integrate these tools into their practice.
Below, you’ll learn about many of the solutions currently available. Keep in mind that this overview is not exhaustive. There are other similar tools currently available and the number of products in this category will undoubtedly increase in the months to come.
Also, it is important to remember that using such software involves entrusting sensitive client information to an external party. As a legal professional, you have an ethical responsibility to thoroughly investigate the technology provider that will host and store your data. This entails understanding the company’s data management processes, the location of its servers, who has access to the data and the backup procedures in place—among other considerations.
Please note, as indicated in the descriptions below, some of these products are still in beta and aren’t yet fully available.
- Spellbook: A contract analysis tool built on OpenAi’s ChatGPT 4 that works in Microsoft Word. It assists with contract review by suggesting contract terms and clauses. It is currently in beta and pricing is not yet available.
- Lexis+ AI: LexisNexis recently announced its generative AI offering, which utilizes multiple generative AI tools, including ChatGPT, Google Bard and Microsoft Bing—depending on the circumstances. Contract analysis is one of its many use cases, and with it, customers can draft documents guided by the built-in chatbot and can change the language and tone with a simple prompt. This offering is still in limited beta and pricing has not yet been determined.
- LegalOn AI Revise: A GPT-powered contract editing tool that allows users to find and correct contracts by flagging inaccuracies and risks in contracts. The tool offers redlines and suggested corrections, without the need for a contract database provided by the customer. The product is no longer in beta and is available for purchase, but pricing is not available on the website.
- Lexion AI Contract Assist: This AI-powered addition to Lexion’s Word plugin uses GPT-3.5 and assists customers in drafting and negotiating contracts. It can be used to summarize contract terms, generate clause language and produce redlined exceptions. It is available in beta and pricing is not available on the website.
- Ironclad AI Assist: This GPT-4 powered redlining tool was released in beta in February and then fully released in April. It helps users to review and analyze contracts by identifying suggested revisions, and users can also highlight clauses for additional review and suggested changes. It is built into the Ironclad platform and can be turned on by a user with admin privileges. You can request a 30-day free trial.
To sum up, if your legal practice involves frequent contract review, these AI-drive platforms may be a great fit for your firm. As this category of software continues to evolve and mature, these tools will undoubtedly increase the speed, accuracy and efficiency of contract analysis.
There’s no better time than now to research this software and consider using it in your practice. A mere six months after ChatGPT 3.5 was released, it’s clear we’re only just beginning to appreciate the profound impact this technology will have on the future of contracts and the practice of law more broadly.
If your firm does not yet take advantage of these tools now, there’s no doubt your competitors will. Change is happening quickly. Why not get ahead of it and beat the competition?
Nicole Black is a Rochester, New York-based attorney, author and journalist, and she is Senior Director, SME and External Education at MyCase, a company that offers legal practice management software for small firms. She is the nationally recognized author of Cloud Computing for Lawyers and is co-author of Social Media for Lawyers: The Next Frontier, both published by the American Bar Association. She also is co-author of Criminal Law in New York, a Thomson Reuters treatise. She writes regular columns for ABAJournal.com and Above the Law; has authored hundreds of articles for other publications; and regularly speaks at conferences regarding the intersection of law and emerging technologies. Follow her on Twitter @nikiblack, or she can be reached at [email protected].
This column reflects the opinions of the author and not necessarily the views of the ABA Journal—or the American Bar Association.