Social Media Policies: Protecting Your Company’s Online Reputation
Social Media Policies: Protecting Your Company’s Online Reputation It takes years to build a company’s reputation and one screenshot to
“Can I use AI to write my contract?” That’s the question every business owner or freelancer asks when looking for a contract to protect their best interest. Artificial intelligence is growing rapidly and applies to almost every industry, including the legal world. It is a technology that can perform nearly any task you want. Imagine telling an AI to draft a contract, and it will do so within seconds!
However, can you rely on it for your contracts? Can an AI-drafted contract hold up in court when necessary? If you’re an independent contractor, podcaster, coach, photographer, or small business owner, you know how important it is to have a reliable contract to protect your business interests. Let’s dive deep into contract drafting using artificial intelligence.
Artificial Intelligence—or AI, as it’s commonly known, is a cutting-edge technology that can perform tasks that typically require some human intelligence. It can write a text, translate, summarize, answer questions, or even code. So, yes, it can draft a contract.
These Large Language Models have been trained to answer questions and produce and summarize text. But before you go ahead and use it, it’s essential to know the advantages and disadvantages.
Using AI to generate contracts can be a cheaper way to have a binding document for your business. AI utilizes a large set of data to create text in seconds, depending on the keywords you input. It can simplify your contract writing, reducing manual writing and revision time.
Almost all AI technologies offer a free version, which means you can generate a contract at no cost. It can be the solution if you want a quick, generic contract template for free.
You can pull out a contract template from an AI platform anytime. You can use a free AI tool to generate quick cookie-cutter agreements. It can be helpful to a certain degree, but it is essential to consider that it might be costly down the line.
While using AI to produce contract templates sounds easy, affordable, and fast, it has many drawbacks. Remember, a legally binding document is vital to safeguard your best interests in disputes. Unfortunately, AI has many flaws, so you shouldn’t rely on it to draft contracts.
Here are some of the limitations of AI when drafting contracts.
AI is just a trained technology. It lacks human reasoning, ethical considerations, and professional legal experience. You can’t depend on it as it cannot grasp the nuanced legal situation and industry-specific considerations.
Additionally, AI can’t think critically—again, it’s a trained large language model—so it can’t account for unique circumstances, precedent, or evolving situations.
Another main concern when using AI to write contracts is the high chance of bias and ethical issues. Using it means you risk ending up with a legal template with errors, omissions, or unenforceable terms.
Furthermore, AI may not account for local laws, customs, or business practices elsewhere, leading to biases. An experienced human lawyer focusing on your industry can create a reliable, legally binding document protecting your business.
Another reason AI may not be the best is because it may not write a contract that matches your unique scenarios since it may be using data from contracts designed for large corporations or that aren’t specific enough to your industry.
Working with a seasoned lawyer ensures you get an agreement that is properly niched to your industry so you are protected if a transaction with your client goes sideways.
The whole point of a contract is to outline responsibilities and expectations and minimize liabilities. You want a smooth working experience between you and your clients or a faster resolution in case of a conflict, which is possible when you have a well-written, custom contract.
With AI contracts, there is a risk that it lacks proper limitations of liability or other dispute resolution clauses that can help minimize the cost and impact to your business in a conflict, like mediation or arbitration clauses.
Large language models (LLMs) often pull text from contracts designed for large companies, which may not accurately reflect risk sharing for smaller businesses.
An AI machine can’t think out of the box. It produces texts depending on the data it’s been trained on—And this means 99.9% of the time, you’ll end up with a generic language draft. It can’t interpret any law to accommodate any unique situation, and you may end up with a contract that has gaps and errors.
Your contract should be concise and free of redundant, ambiguous language. A well-written contract can give you the confidence you need to run your business.
One thing about an AI-drafted contract is that it may not cater to the strategic goals behind your negotiation and business. It can’t read between the lines and can’t employ creativity, judgment, and adaptability when writing your contracts.
An experienced lawyer who focuses on your industry understands business realities and will adjust your contract for mutual benefit.
Finally, many agreements that AI models are trained on can have overly complex language that neither you nor your client may understand. Having a contract that protects the parties but also is written in plain language is so important for small businesses, and working with an attorney helps ensure you understand exactly what is written in your contract and why, so you can answer your client’s questions and close more business.
Sometimes AI can draft a pretty decent contract. But if you don’t know the right questions to ask, you might get an entirely wrong contract. Take, for example, a client that came to us to review an AI-drafted agreement for an engagement with their client. What the client needed was an intellectual property license agreement, but what they asked AI to create was a client service agreement. It was a great service agreement–it covered all the typical aspects of a client relationship. But that wasn’t at all what the client needed, so it was actually a useless contract for the client’s purposes and would not have protected their intellectual property in the slightest had they used that contract.
Just because AI can produce text quickly doesn’t mean you should trust it for important documents like contracts.
It may understand basic laws because it has the data, but it may not accommodate your unique business needs.
Get robust and legally sound documents from a professional who understands all legal contexts.
A contract is more than just a document; it is legally binding, which means the parties have various rights and obligations that are enforceable in legal proceedings. Consulting an attorney ensures you get an enforceable document to protect your business.
Working with a lawyer does not have to break the bank. You can get a custom, lawyer-drafted agreement, specific to your industry and business operations, for much less than you may think. Ready to chat with a lawyer? Schedule a free consultation today!
Social Media Policies: Protecting Your Company’s Online Reputation It takes years to build a company’s reputation and one screenshot to
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