As AI tools become more accessible and sophisticated, many business owners are asking: Should I use AI to draft my contracts? While AI can be a helpful starting point, it’s not a substitute for legal expertise—especially when your business, liability, and reputation are on the line.

What AI Can Do

AI can quickly generate contract templates, summarize terms, and flag common issues. This is useful for early-stage planning or identifying basic terms in routine agreements. It’s especially tempting for small businesses looking to cut costs or move quickly.

The Risks of AI-Drafted Contracts

But here’s the catch: AI doesn’t know your business. It can’t assess your risk tolerance, negotiate unique terms, or ensure compliance with the latest laws and regulations in your industry or state. A poorly drafted contract—no matter how “smart” it sounds—can expose your business to serious legal vulnerabilities, including:

• Unenforceable clauses
• Missed compliance requirements
• Vague or contradictory terms
• Lack of key provisions for your specific operations

Why Legal Review Still Matters

Even if you use AI to generate a draft, it’s critical to have an attorney review and customize it. Contracts are more than just documents—they’re risk management tools. A business attorney ensures your agreements reflect your goals, protect your interests, and hold up in court if ever challenged.

Final Thought

Think of AI as your assistant—not your advisor. Use it to brainstorm, not to bind your business. For contracts that matter, it’s worth investing in professional legal counsel.

Have questions about your contracts? Contact Chase Law Group at 310-545-7700 to review your agreements or draft one that protects your business from day one.

Have contract questions?
Contact Chase Law Group

WWW.CHASELAWMB.COM
310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}