Claric Legal Services
AI can be brilliant for speed and inspiration but using it to generate business contracts is a different matter.
Before relying on AI to draft something legally binding, keep these tips in mind.
One size never fits all
Your business, risks and priorities are unique. AI drafts tend to be generic and may miss what really matters in your scenario.
Professional wording can be misleading
Just because a contract sounds professional doesn’t mean it protects you. Key clauses can be missing or diluted.
Critical issues can get overlooked
Licensing, IP ownership, data rights, confidentiality and liability can be missed entirely with potentially costly consequences.
Legislation changes
AI tools aren’t always current and may rely on outdated or unreliable sources.
AI “hallucinations”
AI can confidently invent legal terms, cite laws that don’t exist, or combine provisions in ways that create confusion or conflict.
Planning ahead
Good contracts plan for potential problems e.g. delays, disputes and data breaches. AI won’t necessarily factor these in. A missing clause can have expensive consequences that could have been avoided.
Confidentiality isn’t guaranteed
Sharing sensitive business details with AI tools raises serious questions about data security, storage and access.
There’s no substitute for human expertise
Contracts underpin your business relationships. Having them drafted or reviewed by a professional ensures they work when you need them to.
