Should I use AI to write contracts?

If you’re a business owner or landlord, the idea of using Artificial Intelligence (AI) programs, such as Chat-GPT or DeepSeek, to draft legal contracts may seem like a smart cost-saving approach, but it also comes with significant risks compared to hiring a lawyer. Here are some common pitfalls of relying on AI for contract drafting without talking to a lawyer:

1. Lack of Legal Expertise & Nuance

• AI doesn’t "understand" the law—it predicts text based on patterns in data but lacks true legal reasoning.

• AI may miss jurisdiction-specific requirements (e.g., state/country laws on enforceability).

• AI often fails to account for unique situational risks that an experienced lawyer would identify.

  
  

2. Generic or Outdated Clauses

• AI-generated contracts often rely on boilerplate language, which may not be tailored to your specific needs or may fail to account for all reasonably foreseeable outcomes.

• AI models may not be trained on the latest legal precedents or regulatory changes.

  
  

3. Ambiguity & Unenforceable Terms

• Poorly worded contract clauses can create legal loopholes or unintended obligations.

• AI might generate internally contradictory terms, leading to an increase in disputes, which is precisely what a well-crafted contract should avoid.

• Some AI-generated clauses may not hold up in court if they violate statutory requirements.

  
  

4. No Strategic Legal Advice

• Lawyers don’t just draft contracts—they negotiate terms, assess individual risks, and advise on broader business implications.

• AI might provide generic language without providing proper context for whether it helps or hurts you (or if there is more favorable language for your specific goals). 

  
  

5. Confidentiality & Data Privacy Risks

• Inputting sensitive contract details into an AI program could expose confidential information (many AI platforms retain user data).

• Lawyers are bound by attorney-client privilege, whereas AI providers are not.

  
  

When AI Can Be Useful For (With Caution)

• First drafts (to save time, but should always be reviewed by a lawyer).

• Identifying potential legal issues (as a supplementary tool).

  
  

The Best Approach?

• AI can be used to increase efficiency, but you should always have a lawyer review, customize, and finalize contracts before signing.

• For high-stakes agreements (e.g., mergers, IP licenses, employment contracts), never rely on AI.

  
  

The Bottom Line

AI can be a helpful assistant to a knowledgeable attorney, but it can be dangerous if used incorrectly and is no substitute for a skilled lawyer when it comes enforceability, risk management, and strategic legal advice. Cutting corners on legal contracts often leads to costly disputes down the road.