Artificial intelligence (AI) is reshaping how legal professionals approach tasks like contract review and redlining. Among the various AI technologies, ChatGPT has garnered the most attention for its potential to streamline and enhance these processes. However, as with any emerging technology, it is crucial for lawyers and in-house legal teams to understand both its capabilities and its pitfalls.
ChatGPT, along with other foundational models like Anthropic’s Claude and GPT-wrappers (a user-interface built on top of GPT models for specific use cases), offers efficiencies in some contract tasks. Its ability to quickly process and analyze text may reduce the time legal professionals spend reading through a long contract. When prompted and guided well, this technology can answer questions and draft language changes. These capabilities can help expedite a portion of the contract review process.
Despite their advancements, ChatGPT and GPT-wrappers are not without limitations.
Understanding the strengths and weaknesses of ChatGPT and GPT-wrappers in contract review and redlining is essential. This article aims to provide an overview of how generative AI models like ChatGPT are reshaping contract review processes, illustrating where they have strengths and where human expertise remains indispensable. You’ll learn why a purpose-built model like LegalOn’s, that is trained by actual contract attorneys, is essential for creating a comprehensive solution for lawyers and in-house legal teams.
ChatGPT is emerging as a powerful tool for some legal tasks, including contract review. . With its ability to understand and generate human-like text, ChatGPT can automate and enhance elements of the contracting process.
At its core, ChatGPT is a deep learning foundational model trained on vast amounts of text data. This enables it to “comprehend” and generate natural language. Because ChatGPT’s responses are based on its training data, it is important to avoid prompting with sensitive information unless data processing protections are in place to prevent user data from being used in model training. Some specific applications of ChatGPT in contract review include:
While ChatGPT offers significant advantages, lawyers and in-house counsel need much more than generic chatbots when performing contract review. Below is a list of functions that cannot be performed by ChatGPT and GPT-wrappers without additional training and customization by lawyers:
Addressing these challenges is essential for meaningfully using AI to improve contract review processes. We believe that AI solutions that are purpose-built and trained by lawyers can provide legal teams with the most effective support. So when we set out to build a comprehensive solution for contract review, we focused on solving these issues head-on:
Continuous improvement initiatives, such as re-training the model on updated legal content and incorporating user feedback, help ensure that our solution continues to improve over time. By combining the power of AI with lawyer training, LegalOn is building AI software for legal teams that actually solves contract review.
ChatGPT’s ability to respond to a user’s questions and perform tasks provides flexibility for contract work.That’s why, in addition to our robust contract review platform, we built an upgraded, secure, private AI assistant to answer your contract questions. As a result, with LegalOn Assistant, you can:
AI has the potential to serve as a transformative tool for lawyers and legal teams, particularly with contract review and redlining. ChatGPT and similar foundational models can streamline some contract tasks, offering quick analysis of text and easy interaction using natural language. However, these models have limitations, such as the occurrence of “hallucinations” and a less nuanced understanding of complex legal risks. This underscores the need for expert training and refinement.
LegalOn bridges this gap by integrating AI with legal expertise.s. Our solution reduces the risk of inaccuracies, is trained for enhanced performance, and upholds data privacy and security. With capabilities like generating instant, clear contract summaries, drafting clauses aligned with existing contract language, and offering AI-driven recommendations, LegalOn cuts contract review times by 85%.
By merging AI's power with the precision of legal training, LegalOn represents a superior tool for legal professionals. It not only expedites the contract review process, but ensures accuracy, compliance, and alignment with business objectives.
For legal teams seeking to improve their legal processes with superior AI technology, we would love to talk. We believe our AI contract review software will help you make more informed, efficient, and timely decisions. Discover how LegalOn can improve your legal processes by booking a demo today.
See how LegalOn can save you time, reduce legal risk, and free you from tedious work.