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Thoroughly review every clause of every contract to protect the company — or move faster to meet urgent business demands.
According to LegalOn’s 2025 survey of 286 legal professionals, legal teams spend an average of 3.2 hours reviewing a single contract.
For a legal team handling 500 contracts annually, this translates to nearly 200 working days spent solely on contract review.
The market has responded with numerous AI contract review solutions, but quality varies significantly.
LegalOn stands out with pre-built playbooks and AI guardrails maintained by in-house attorneys — ready to be used out of the box and flexible for users to tailor reviews to their own policies and language.
This foundation enables 98% of customers to achieve immediate time savings and 90% to improve accuracy and risk detection.
Bottom Line for Buyers:
Multiple solutions exist, but success depends on choosing one with genuine legal expertise built into the AI — not just technology wrappers around generic AI models.
AI contract review software uses artificial intelligence to scan legal documents, identify potential risks, highlight important clauses, and suggest changes based on your requirements.
Think of it as a powerful assistant that speeds up the review process and helps legal professionals maintain high standards of accuracy.
Unlike general AI models like ChatGPT, contract review software is purpose-built specifically for contracts and legal documents. The difference matters — general AI lacks specialized legal training and misses subtle nuances that can expose your organization to significant risk.
Purpose-built Legal Contract AI is:
Generic AI might catch obvious issues, but purpose-built platforms like LegalOn identify the sophisticated legal risks that could cost your company dearly.
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Purpose-built AI contract review software absorbs administrative tasks and speeds analysis to boost productivity beyond conventional capacity.
Here’s what buyers can expect:
78% of corporate legal departments and law firms are either actively using AI for contract review (14%), evaluating solutions (20%), or exploring the technology’s capabilities (44%).
Non-legal teams handling contracts—procurement managers, sales contract teams, compliance officers—use AI to ensure consistent adherence to company standards for liability, IP protection, data security, and regulatory compliance.
Industries include:
Contract review playbooks define how legal teams evaluate agreements — containing an organization’s standards, preferred language, fallback positions, and review protocols.
They act as AI guardrails, ensuring consistent, accurate analysis aligned with your requirements.
The Playbook Reality:
LegalOn’s 2025 survey reveals:
Purpose-built Legal Contract AI is:
Pre-Built Playbooks (Day 1 Value)
Hybrid Approach (1–3 Weeks to Value)
Custom Playbooks (1–3+ Months to Value)
69% of generic AI models hallucinate legal information (Stanford RegLab & Human-Centered AI Project).
Look for platforms that:
Ask:
Red Flags: Requires you to build all playbooks, no attorney input, or dozens of training hours just to start.
2. Purpose-Built Architecture (Deal-Breaker Assessment)
Not all AI tools truly “major” in contract review — ensure the platform is built exclusively for contract analysis, combining legal expertise with standardized review processes.
Look for:
Supporting Capabilities:
Red Flags: Requires long AI training, lacks playbooks, or only offers clause suggestions.
3. Security and Enterprise Readiness
Given contract sensitivity, security must be enterprise-grade.
Minimum standards:
Critical Questions:
4. Implementation Speed and Day-One Value
Legal teams need productivity now — not months later.
Implementation options:
Expect: 50–90% time reduction per contract and 2–3× more contracts handled weekly.
LegalOn delivers immediate productivity through attorney-built intelligence and pre-configured playbooks that work from Day 1.
Key Features:
Legal Expertise at Scale:
Technical AI Architecture:
Day-One Productivity:
Continuous Legal Validation:
Enterprise Security:
Customer Validation:
“LegalOn is the best implementation of review technology that I’ve seen.” — General Counsel, Startup and Venture Firms
Book a demo today to see it for yourself on real contracts you review daily.
Purpose-built legal AI helps 90% of legal teams improve accuracy and risk detection compared to manual review. However, general AI tools (like ChatGPT) hallucinate legal advice 69% of the time according to Stanford research. LegalOn's accuracy comes from attorney-drafted content and AI trained on millions of actual contracts, not generic internet data.
LegalOn customers report saving 70 - 85% of time on contract review. For a legal team handling 500 contracts annually and averaging 3.2 hours with manual review, that's roughly 200 working days!. The same legal team using LegalOn might have saved more than 100 working days!
Enterprise-grade AI platforms offer bank-level security. LegalOn provides SOC 2 Type II certification, GDPR and CCPA compliance, encrypted data at rest/transit, and segregated environments for each customer. Critical: Ensure your vendor never trains AI on your contracts. LegalOn maintains strict data isolation and never uses customer contracts for AI training or shares them with third parties.
The best platforms handle 50+ contract types from Day 1, including complex M&A, real estate, IP licensing, and clinical trials. Key differentiator: Legal-specific AI understands context (e.g., 'reasonable efforts' vs. 'best efforts'), while general AI treats contracts like any other document. LegalOn handles everything from simple NDAs to specialized Construction agreements.
The biggest risk is choosing generic AI or CLM add-ons instead of purpose-built solutions. Critical evaluation questions: Can the vendor provide attorney credentials? Do they offer pre-built playbooks for Day 1 value? Is redline language attorney-drafted or AI-generated? LegalOn's attorney-built content and immediate productivity distinguish genuine legal AI from technology wrappers.
