AI is a wonderful tool, but it must be used with care. Generative AI creates text from statistical calculations based on large quantities of data. The answers provided by the models are based on statistical predictions which, like all predictions, provide no certainty.
Artificial intelligence (AI)-generated contracts: benefits
Generative AI can play a significant role in contract design.
Saving time
- Pre-contractual phase: speed up negotiations by generating a contract based on previous agreements, proposing relevant clauses according to the customer’s history.
- Drafting phase: Reduce the time required to draft the contract by automating this task.
- Post-contract phase: In the event of contract renewal, AI will be able to draw on previously collected data to design a renewal process.
Accessibility and cost reduction
Time is money. By reducing the time needed for the various phases, human intervention can be shortened and made less costly. Generative AI, accessible and capable of drafting standard contracts, would enable users to dispense with legal services.
Contract generated by artificial intelligence (AI): disadvantages
Legal uncertainty
To provide high-quality legal analysis, it is essential to use relevant, up-to-date data, as the law evolves with society. What are the consequences if AI data is not up to date? What can be done in the event of a dispute concerning an AI-generated contract if it is unsuitable, incomplete or ineffective? AI cannot be held responsible for any shortcomings in the contract.
Danger to sensitive data
If you provide sensitive personal or commercial data when generating a contract, the AI could integrate it into the model created. If you don’t report any problems, the model will be considered correct and could be reproduced for other users, thus disclosing your data.
Our advice:
At this stage, despite the apparent prowess of artificial intelligence, it appears that it :
- doesn’t understand what it’s doing, let alone reason about it,
- often grasps only part of the context of the task assigned to it;
- hallucinates, invents, makes mistakes.
Whatever your business project, it is always essential to have it proofread by a professional lawyer who will take responsibility for it. Don’t hesitate to contact your lawyer.
Sign up for our earlegal training course on 13 December 2024 “Framing your AI projects: contractual issues”! We will address the following questions:
- What are the main contractual aspects to consider at the AI development stage?
- What are the contractual aspects to be taken into account at the AI marketing stage?
- How to ensure proper management of AI-related incidents in the contractual chain
- How to contractually manage your compliance with the AI regulation?
For more information, click here.
