Samuel Edwards
In a world where lawyers are expected to review a mountain of contracts before lunch and somehow still make it to the 3 p.m. client call, automating contract review with AI has gone from buzzword bingo to actual survival strategy. No, AI won’t steal your job (yet), but it will cheerfully consume your repetitive tasks and leave you to focus on the complicated work that makes your hourly rate almost justifiable.
This isn't some “AI for Dummies” handholding session. We're getting technical. We're getting real. And yes, there will be snark. Buckle up as we embark on the five-step process of unleashing your very own AI contract review overlord.
Before you unleash an AI agent on your contracts, you need to give it a purpose beyond "look at words." Contracts are not monoliths. An NDA is not an MSA, and a licensing agreement is not your garden-variety purchase order. If you’re expecting a single AI model to handle them all, you might as well ask your summer intern to manage international arbitration.
AI thrives on specificity. Is your priority identifying high-risk indemnity clauses in supplier agreements? Detecting change-of-control triggers in financing documents? Extracting governing law provisions faster than your associate with four shots of espresso? Decide, document it, and design your system accordingly. Otherwise, your “AI initiative” becomes the kind of expensive failure your managing partner will bring up at every meeting for the next decade.
Once you’ve defined your use case, it’s time to pick an AI vendor from the frothing sea of “enterprise solutions” promising the moon. You’ll face a painful choice between open-source tools that require a Ph.D. in machine learning to operate and closed-source, enterprise platforms whose sales reps will ghost you immediately after onboarding.
Focus on tangible benchmarks. Accuracy on sample datasets. Speed of processing. Customization flexibility. Security standards. And yes, figure out if the “AI” is actually just 20 paralegals in another time zone clicking buttons. You laugh now, but you’ve seen things.
Once you've installed your AI agent, the temptation is to dump every scanned contract from the past 20 years into its training set and call it a day. Congratulations, you’ve just taught your AI to hallucinate clause extractions based on a template from 2004 written in Comic Sans.
Quality trumps quantity. Use clean, recent, and well-annotated contracts for training. Build gold-standard datasets with meticulous labeling of clauses, obligations, and exceptions. Yes, it’s tedious. Yes, your associates will revolt. But unless you’re into the whole “wrong clause in the wrong jurisdiction” game, this step isn’t optional.
Too sensitive, and your AI flags every harmless warranty clause as an existential threat to the company. Too specific, and it misses the poison pill buried in paragraph 87(b). Fine-tuning this balance is less science, more dark art, involving threshold adjustments, iterative testing, and a lot of late-night cursing.
Remember: nuance matters. If your AI can't tell the difference between a carve-out and a carve-up, you're in for some very awkward calls with compliance.
Congratulations! You've trained your AI. Now you just have to cram it into your existing document management system, which, if we're being honest, was last updated when flip phones were still cutting-edge.
Expect to battle APIs that lie, authentication protocols that sulk, and metadata fields that mysteriously delete themselves. Your IT team will hate you. Your project manager will cry. But unless you want your AI working in a vacuum (or worse, on exported Word files saved to someone's desktop), integration is mandatory.
Once the system is live, prepare for the flood of notifications. Every flagged clause. Every ambiguous term. Every “potential issue” the AI helpfully thinks you might want to see at 3 a.m.
To avoid inbox Armageddon, configure sensible thresholds. Decide when human review is required and when the AI can safely push through minor deviations. Otherwise, you'll spend more time babysitting the system than reviewing the contracts themselves, which is impressively counterproductive, even for law firms.
You may think your AI is ready. You are wrong. Before you trust it on live contracts, bombard it with the ugliest, messiest documents you can find: incomplete scans, hybrid jurisdictions, multi-language monstrosities.
Review the AI’s redlines and extractions like a hawk. Run scoring models to measure precision and recall. If it fails, tweak and retrain. If it succeeds, assume it was a fluke and test it again. Paranoia is your friend.
No matter how good your AI is, there will be contracts that make it cry. Some clauses simply don’t conform to any standard, and no model can anticipate every creative draft penned by that one partner who thinks legalese is an art form.
Build in manual override processes. Keep audit trails for every AI decision. Document when and why a human stepped in. If you think regulators won’t care that “the AI missed it,” I admire your optimism.
The problem with training your AI on today’s contracts is that tomorrow’s will be different. Language evolves. Standards shift. Suddenly, your once-perfect model is making embarrassing mistakes because the market moved on and your AI didn’t get the memo.
Set up continuous evaluation protocols. Monitor accuracy over time. Retrain regularly with new data. If that sounds exhausting, congratulations—you’ve discovered the secret no one mentions about AI: it’s never “done.”
Even worse, every correction you feed back into the system risks unintended side effects. One fix can trigger a dozen new misinterpretations. Before you know it, you’re patching patches with patches and wondering if maybe paper files weren’t so bad after all.
Control your feedback loops with strict validation gates. Test changes in staging environments before they hit production. And, please, keep the overzealous partners from submitting “helpful suggestions” unless you enjoy chaos.
Samuel Edwards is CMO of Law.co and its associated agency. Since 2012, Sam has worked with some of the largest law firms around the globe. Today, Sam works directly with high-end law clients across all verticals to maximize operational efficiency and ROI through artificial intelligence. Connect with Sam on Linkedin.
Law
(
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.
)
News
(
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.
)
© 2023 Nead, LLC
Law.co is NOT a law firm. Law.co is built directly as an AI-enhancement tool for lawyers and law firms, NOT the clients they serve. The information on this site does not constitute attorney-client privilege or imply an attorney-client relationship. Furthermore, This website is NOT intended to replace the professional legal advice of a licensed attorney. Our services and products are subject to our Privacy Policy and Terms and Conditions.