Best AI Contract Review Software

As organizations face growing contract volumes and complexity, choosing the right AI contract review solution has become crucial. However, this is no simple task — software to help legal teams review contracts has evolved dramatically since the initial wave of generative AI solutions in 2023. Different solutions serve distinct needs. Some target enterprise legal departments, others cater to specialized industries like financial services, and some focus on smaller legal teams.

In this article, we'll take a closer look at the different types of AI Contract Review software available, explore their key features and benefits, and highlight some of the top solutions in the market.

Understanding Modern AI Contract Review Solutions

The maturation of AI contract review technology has led to several distinct approaches, each with its own strengths and focus areas. Understanding these different approaches is crucial for selecting the right solution for your organization.

Purpose-Built Contract Review Platforms

Purpose-built AI contract review platforms combine specialized AI models with deep legal expertise and pre-built content. These solutions focus exclusively on the contract review and negotiation process, offering:

• AI trained specifically on legal documents and contract analysis
• Pre-built playbooks and templates covering common contract types
• Automated redlining and version comparison
• Integration with existing document management systems
• Enterprise-grade security and compliance features

How to Identify Lawyer-Trained AI Products

Distinguishing a lawyer-trained AI contract review product involves learning about its training data, testing methods, and the involvement of legal experts in the development process. More specifically, these solutions have legal professionals on staff who constantly improve the software to prevent AI “hallucinations,” thus improving the overall quality of their product.

Considerations for Lawyer-Trained AI Contract Review

However, not all companies offering lawyer-trained AI have reached the same level of sophistication. So, what should you look for when considering a vendor?

• Investment in lawyer training: Some companies invest more in lawyer-led training and validation than others, which generally means more consistency and accuracy. It’s important to understand how much lawyer training has been incorporated into the product and the accuracy of redlines from the software.
• Pre-built and custom playbooks: Some lawyer-trained AI solutions invest in creating pre-built playbooks for use on day one. This can add significant value because many legal teams don’t have formalized contract playbooks. Other solutions only offer services to codify playbooks in their software, which increases cost and time to value. Make sure you understand what playbooks are pre-built and how long it takes to build custom playbooks.
• Data privacy and/or security controls: Some lawyer-trained AI solutions have different commitments to data privacy and security controls. This is an important consideration for buyers and should be a standard part of your due diligence. Given the sensitivity of contracts and business information, legal teams should look at security certificates such as SOC 2 Type II and ensure no data is used to train large language models (LLMs).

LegalOn is a leader in this category due to its lawyer-led validation and many security features:

• Specializes in contract review with lawyer-trained AI
• 50+ pre-built playbooks
• Immediate implementation
• SOC 2 Type II certified
• Strong focus on legal accuracy and efficiency

Other AI Contract Review Tools

Other AI contract review tools combine large language models with legal automation capabilities, but often vary in the depth of embedded legal expertise. These tools primarily focus on pre-signature contract review and negotiation workflows, typically offering:

• Automated issue-spotting and redlining based primarily on general LLM capabilities
• Playbook creation often manual or AI-generated, with few legally tested or attorney-vetted options available
• Security and compliance standards vary across providers

Some tools are positioned as contract review solutions but are developed with limited direct involvement from legal experts. While they can offer automation and speed, they often rely on general-purpose large language models (LLMs) without extensive attorney-led training or validation. As a result, redlines may vary in quality, and there may be a higher risk of inaccuracies and hallucinations.

Considerations for Other AI Contract Review Tools

When evaluating these tools, ask:

• Is legal expertise integrated into AI?
  Many rely on general-purpose LLMs with minimal attorney oversight, and few incorporate structured, ongoing input from legal professionals.
• How are playbooks created and maintained?
  Most require users to build playbooks from scratch—often without access to pre-built, legally vetted positions—delaying time-to-value.
• What is the security and compliance posture?
  Many lack SOC 2 Type II certification and clear assurances around how LLM training data is handled, raising concerns for enterprise buyers.

Companies such as Spellbook and Ivo provide users with:

• AI-powered clause suggestions and redlining based on general LLM capabilities
• Playbook features built primarily on general-purpose LLMs
• Basic implementation processes and limited customer support

Contract Lifecycle Management (CLM) Platforms

CLM platforms are comprehensive solutions that handle the entire contract lifecycle, from creation through post-signature management. While some offer basic AI-powered review capabilities, these are typically part of a broader feature set that includes:

• Template management and contract generation
• Workflow automation and approval routing
• Repository management and obligation tracking
• Basic AI-assisted review features
• Integration with other enterprise systems

How to Identify CLM Products

CLM systems major in contract management capabilities (such as post-signature obligations) and minor in AI contract review. As such, CLM benefits are more squarely focused on operational efficiency, particularly post-signature. 

While some CLMs have recently invested in building features targeted at AI contract review, their features are less robust and harder to use than pure AI contract review software.

Considerations for CLM Systems

Despite their strengths in contract management, CLM systems may be a poor choice for many legal teams looking for relief in contract review processes:

• Higher price point: Given the broader feature set and orientation towards enterprise buyers, the price point for CLMs is typically above 2x the cost of stand-alone AI contract review software. Implementation and ongoing management also often require full-time employees and hiring staff who are experts in a specific CLM system.
• Longer implementation timeline: Most CLM implementations span a multi-month process that includes tagging and moving all historical contracts into the new system. Many buyers also hire implementation specialists and add-on services to navigate this cumbersome process.
• Playbook investment: Similar to implementations, many CLMs require customers to go through a lengthy process to train and build custom playbooks for every contract type, a process that takes two to six months.

Companies such as Ironclad, Agiloft, and Icertis are CLM systems that provide enterprise teams with:

• Strong workflow automations
• Require longer implementation
• Enterprise-focused solutions
• Broader contract management features

Industry-Specific Managed Services

Some providers combine AI technology with managed services, particularly for specific industries like private equity or financial services. These hybrid offerings typically provide:

• Specialized contract review services
• Industry-specific playbooks and templates
• Combination of AI and human review
• Focus on specific contract types
• Customized workflow solutions

How to Identify Industry-Specific Managed Services 

Distinguishing industry-specific managed services providers involves a glance at their website. You’ll quickly notice phrases like “Managed Services” prominently displayed. These companies have legal professionals on staff ready to do your contract reviews for you.

Considerations for Industry-Specific Managed Services

Not all companies offering industry-specific managed services take the same approach or have the same depth. Here are a few things to note:

• Financial services-focused: Looking at the logos and case studies, you’ll notice that many of them cater to financial services companies. As such, the software is geared towards contract types like NDAs. 
• Custom playbooks are expensive: Customers who need playbooks beyond NDAs will need a custom playbook built by legal and product teams. Custom playbooks are a more expensive product and typically take weeks or months to build.
• Managed services: These companies focus on managed services. Think of them as an outsourced team of experienced lawyers who use AI or other automation tools to assist in their review. These lawyers are often based abroad and ensuring they review according to your specific preferences can involve a lot of upfront time training and/or writing down specific rules to follow for all likely negotiation scenarios. 

Vendors such as Robin AI and Ontra offer services in this category:

• Financial services industry focus
• Hybrid AI and managed services
• Specialized for PE/VC contracts
• Custom playbook creation
• Industry-specific expertise

Making the Right Choice

When selecting an AI contract review solution, consider:

1. Your primary use case: Do you spend the most time reviewing contracts, or do you need a broader tool to manage the entire lifecycle of a contract, including workflows and executions?
2. Team size and structure: Do you need a solution for a small legal team or an enterprise-wide platform?
3. Industry requirements: Does your industry have specific compliance and regulatory needs that may influence your choice?
4. Implementation resources: Do you have a set timeline and available resources for implementation and training?
5. Budget and ROI: What is the total cost of ownership, including implementation, training, and ongoing maintenance?

What to Look for in the Best

When evaluating AI contract review software solutions, it’s important to ask the following three questions:

• How is legal expertise incorporated into AI training?
• How are pre-built and custom playbooks supported?
• How long does it take to see the value?

How Is Legal Expertise Incorporated into AI Training?

In contract review, combining AI with real legal expertise is essential. Legal experts on staff help train the software to identify issues accurately and provide sound legal redlines. 

When evaluating AI contract review software solutions, we recommend asking where the legal content of the solution comes from and, if possible, talking to the experts who created it. 

How Are Pre-built and Custom Playbooks Supported?

Playbooks are essential tools in contract review. They include predefined guidelines, rules, and templates that structure the review process within legal teams. Playbooks promote consistency and efficiency by implementing standardized language and best practices tailored to various contract types and scenarios. 

When coded in AI software, playbooks enable a methodical approach that enhances productivity and reduces risks associated with AI “hallucinations.” Always check if a software provider offers pre-built playbooks and if their software supports building custom playbooks.

How Long Does It Take to See the Value?

AI contract review companies have very different implementation timelines. Some AI contract review software providers have invested in building a library of templates, playbooks, and guidance that can be used on day one. Others rely on customers to codify custom contracts and playbooks, which may take weeks to months. Have a clear understanding of your own goals and timelines so you can determine which implementation lengths are appropriate for your team.

Conclusion

Choosing the right AI contract review solution requires careful consideration of your organization's specific needs, resources, and goals. While there are many capable solutions in the market, the key is finding one that aligns with your specific requirements while providing the right balance of features, ease of use, and value.

Make the effort to schedule demos with multiple providers and ask if they can tailor to show the solutions in action with your specific use cases. Pay particular attention to the quality of pre-built content, ease of customization, and the level of support provided during implementation and beyond.

Remember that the goal is not just to automate contract review, but to improve the quality and consistency of your contract processes while freeing up your legal team to focus on higher-value strategic work.

Meet LegalOn

When it comes to contract review, LegalOn’s lawyer-trained AI contract review software is transforming the way legal professionals negotiate contracts. 

With industry-leading features such as lawyer-trained AI and pre-built playbooks, LegalOn offers an unparalleled solution that enhances accuracy, efficiency, and consistency in contract review. Our software is engineered to provide immediate value from day one, reducing the risk of AI hallucinations and empowering legal teams with tools that are tailored to their specific needs. 

‍Click here to book a demo today and experience the future of LegalOn’s technology firsthand.