Writing Contract
AI Writing Contract Agreement
AI Contract Writing: Genius or Risky Business? Our guide explores benefits, risks and best practices for AI-powered contracts. Secure your deals the smart way!
Artificial intelligence (AI) has already made its mark in the world of content creation. From writing blog post outlines to social media posts to entire articles, there’s no doubt that AI has helped many marketers, content managers, and writers streamline the content creation process. So much so, in fact, that this technology is now making its way into another essential part of the process: writing contract agreements. But is an AI writing contract agreement just as good as one written by humans? Or do the risks outweigh the benefits?
In this article, we’re going to explore AI writing contract agreements. We’re going to discuss:
Yes, artificial intelligence can help you write contracts using contract AI technology. This refers to the use of natural language processing and machine learning algorithms to draft, review, and manage contracts.
While it may sound complicated on the surface, one of the best things about using contract AI solutions for drafting purposes is that they’re generally easy to use. In many cases, you just need to provide your AI contract generator of choice with details about the contract, and it will analyze and create a draft based on that information.
For example, let’s say you’re hiring a freelancer to write content for your company’s website, and you want to draft a writing contract agreement. You may type in a prompt that includes information about the parties involved, the scope of the work, payment terms, and any other major details about the job.
Once you submit that prompt, the AI contract generator will come up with a first draft of your contract. You can then edit and add details as you see fit.
As you can probably imagine, this can save you a lot of time in the contract creation process. But this isn’t the only benefit of using AI to create writing contracts.
There’s a lot to like about how AI is changing contracts, as it has the potential to improve the process in various ways.
One of the most obvious advantages of AI contract solutions is that they can help streamline the drafting process, which can result in a faster contract turnaround time. By using AI to create the first draft of contracts, managers, paralegals, and solopreneurs only need to focus their efforts on editing and fine-tuning the document as they see fit.
The faster you get those contracts out and signed, the faster writers can start creating content.
Of course, when you save time during business hours, you’re typically saving money as well. Whether this means you’re being charged fewer billable hours from an outsourced legal team or you’re keeping things in-house, using AI to draft agreements can help cut down on contract-related costs.
You can then use this money to spend on other areas of your business.
When they can automate aspects of the contract drafting process using AI, employees have more time to focus on their other roles and responsibilities. This improved productivity can free up time to get old business-related tasks up to speed, or even take on new projects.
While it’s hard to deny the benefits of faster contract turnaround times, saving money, and improving productivity, AI-generated contracts aren’t without their risks.
Some companies are on the fence about using AI because it means trusting third parties with their data. Now, this may not be a major issue if you’re coming up with a very basic, barebones contract. But if you need a comprehensive contract full of sensitive information, then these concerns are valid.
In fact, there are already a number of companies limiting or banning company use of ChatGPT and similar solutions, and they often cite data concerns as a top reason.
It’s important to note that AI is only as intelligent as the information it has been trained on. So, if a human feeds AI false or biased data, then it will likely come through in any generated contract agreements.
In some cases, the technology can even make up data entirely in a phenomenon known as AI hallucinations. Take the case of Stephen Schwartz and Peter LoDuca. When these lawyers submitted a legal brief generated by ChatGPT, it ended up including fake quotes and court opinions. Not only did this result in fines for him and his law firm, but it undoubtedly did a number on his reputation as well.
Since it gets its information from cold, hard data, AI can’t really take any kind of human emotion into account when creating documents. While an AI-generated contract may hit all of the marks from a business perspective, it doesn’t consider how certain clauses may come off to the parties involved.
This could result in contract disputes and negotiations, which could end up negating any time saved during the drafting process.
While it has its challenges, AI technology certainly isn’t going anywhere anytime soon. So, if you want to start figuring out how to make AI writing contract agreements work for you, here are some best practices to keep in mind.
AI has the potential to revolutionize the way agencies and solopreneurs create writing contract agreements. However, it’s important to be aware of and account for the risks and challenges involved with this technology.
So, if you want to try out some AI contract drafting software, then go for it! As long as you remember the value of human oversight and have a good content detection tool by your side, you should be able to navigate the risks successfully.
