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AI Contract Drafting: Everything You Need to Know

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By:

Brent Farese

,

June 10, 2025

Still copy-pasting clauses from old contracts? You’re not the only one. But you might not have to keep doing it much longer.

AI is quickly changing how legal teams handle contracts. According to Bloomberg Law, firms are already using AI to speed up drafting, reduce errors, and stay on top of growing workloads without adding headcount.

This doesn’t mean replacing legal work. It means cutting out the time-consuming parts that don’t need constant rewriting. AI tools trained on real contracts can build full drafts, flag missing terms, help keep language consistent, and so much more.

In this article, you’ll get a closer look at how AI contract drafting works, how it stacks up against manual methods, and how the right AI platforms help teams move faster without sacrificing quality.

Can AI Draft Contracts?

Yes, it can, and it’s already helping legal teams save time and reduce errors. If you’ve ever found yourself rewriting the same NDA or digging through past contracts for that one clause, you know how much time drafting can eat up. But AI handles that kind of work in minutes.

These systems use something called natural language processing (NLP). That’s the tech that helps machines understand and write human language: legal language, in this case.

AI models are trained on thousands of legal documents, so they get how contracts are structured and what kind of wording is expected. As a result, you get drafts that make sense and follow legal norms.

According to Bloomberg Law, AI can already handle things like generating clauses, adjusting risk levels, or even drafting entire legal documents based on your inputs. You decide what kind of contract you need, and the system builds out a full draft from there.

You’re still in control. The AI gives you a base to work from, and it’s not final until you say it is. That’s a huge plus if you’re in a fast-paced legal team trying to stay ahead of deadlines.

How the Technology Works

Here’s what’s going on behind the scenes.

These tools are built on large language models that process patterns in legal writing. They’re trained using actual contracts, which means they’re familiar with standard clauses, formatting, and tone.

On top of that, NLP helps the system read context, not just individual words. So it can tell when something is missing, off-balance, or poorly written.

Some tools even learn from your previous contracts. Over time, they start suggesting language that fits how your team writes. That keeps things consistent across the board, especially in growing legal teams.

The legal industry is shifting fast, and contract drafting is one area where AI is making a real difference. It won’t replace you, but it will take the repetitive stuff off your plate so you can focus on higher-value tasks.

How Can Aline Advance Your Contract Drafting Process?

Drafting and managing contracts shouldn’t take over your entire day. When every step feels like a separate task, it slows everything down. Aline changes that by giving you one place to handle it all, powered by AI that actually understands legal work.

Aline contract drafting tool

You’re not stuck jumping between tools or chasing updates. Aline helps reduce manual effort, speed up approvals, and keep your team focused on high-impact work. Whether you're working on a quick NDA or a complex commercial agreement, Aline helps you get it done faster and with fewer delays.

Here’s how Aline makes your contract process easier:

  • Aline AI: Draft and redline contracts in minutes using legal-specific AI trained for accuracy
  • AI playbooks: Automatically flag risky terms based on your company’s review standards
  • Workflows: Collaborate across departments without email threads or approval delays
  • AlineSign: Sign unlimited contracts securely—no extra steps or added costs
  • AI repository: Search, manage, and learn from your existing contracts in one central place

Aline doesn't just want you to save time. It wants to make contract work smoother, faster, and more predictable, so you can focus on what actually moves things forward.

Manual Vs. AI-Powered Contract Drafting

Contract drafting has always been one of the most time-heavy parts of legal work. If you've worked on contracts before, you know it takes time, attention, and a good memory for past deals and approved language. But now, legal teams have another option: AI-powered drafting.

Let’s break down the difference between doing it the traditional way and using AI tools to help.

What Manual Drafting Looks Like

Manual drafting is all about doing things from scratch or close to it. You’re often reusing past contracts, copying clauses from other documents, and double-checking every section to make sure nothing’s missing. That usually involves:

  • Digging through old contracts to find a good starting point
  • Editing names, dates, and key terms manually
  • Checking for outdated clauses or inconsistent wording
  • Fixing formatting errors
  • Re-reading the whole document several times before sending it out

This process works, but it’s slow. It also leaves a lot of room for human error, especially if you’re working with multiple contracts at once.

What AI-Powered Drafting Changes

Now, let’s say you use AI for the same contract. Things look different right from the start.

With AI:

  • You enter key details (names, dates, deal terms), and it builds a draft
  • The tool pulls in your preferred clauses automatically
  • It flags missing sections or risky language
  • You get suggestions based on similar contracts you've worked on
  • Formatting and structure are handled for you

This means less time on the repetitive stuff. You’re still reviewing the document, but you’re not building it from the ground up. And you’re not guessing if that clause sounds right—the AI already knows what’s worked in the past.

Which One Works Better?

That depends on your workflow. Manual drafting gives you full control, but it eats up time. AI drafting speeds things up without cutting you out of the loop. You still make the final call, you just don’t have to do all the typing yourself.

If your legal team handles a high volume of contracts or wants more consistency across documents, AI can be a real boost. And if you're already stretched thin, it's one less thing slowing you down.

What Are AI Contract Drafting Tools?

AI contract drafting tools are built to take some of the pressure off your legal work. If you’re dealing with contracts every day (writing them, reviewing them, double-checking every clause), these tools are designed to help you move faster without losing control.

They use natural language processing and machine learning to write full drafts based on the terms you provide. You plug in the names, dates, and deal points, and the system builds out a complete contract that follows your style and structure.

It can also spot gaps, flag unusual language, and suggest better ways to phrase things, all before you’ve even hit “save.”

You’re not limited to just the writing, either. Many AI drafting tools are part of full contract management software. That means you can handle the entire contract lifecycle (drafting, redlining, approvals, signing, and storing) in one place.

The Benefits Of Having AI Write Legal Contracts

Writing contracts can take up more time than it should but, fortunately for us right now, AI can help make that easier. Instead of starting from scratch every time, you can let the system do the initial work and focus your attention where it matters most.

Take a look at how AI adds value to your contract workflow:

Draft Contracts Without the Usual Delays

Waiting on first drafts can slow everything down, especially when teams are juggling multiple deals at once. AI drafting tools cut that wait time down to almost nothing. Legal professionals can go from inputting key terms to reviewing a full contract draft in less time than it takes to open a new document.

These tools apply patterns pulled from real legal practice, such as clause order, structure, and tone, so the output fits how legal teams actually work. That means less time cleaning up messy formatting or adjusting language that doesn’t belong in a contract.

Faster drafting also clears up bottlenecks between departments. When legal isn’t spending all day on routine drafts, other teams aren’t left waiting around. More deals move forward, and fewer tasks get stuck in someone’s inbox. It’s one of the easiest ways to pick up speed without cutting corners on legally sound contracts.

Fewer Errors That Cost You Time Later

Even the most experienced legal professionals can miss something in a rush. Manual drafting often leads to small mistakes that slip through and cause delays later.

Whether it's a missing term or the wrong version of a clause, these errors slow down the review process and can affect the quality of your legal services.

AI drafting tools help avoid these issues by spotting problems as the draft is being built. The system checks for missing language, inconsistent formatting, and clause mismatches. That makes it easier to deliver clean, consistent legal agreements without the usual back-and-forth.

Common mistakes AI can help catch:

  • Wrong party names or outdated terms
  • Missing signatures or incomplete sections
  • Reused clauses that don’t match the new context
  • Inconsistent formatting or numbering
  • Overlooked approval steps

Legal teams that use AI don’t have to spend as much time fixing errors after the fact. That means faster turnaround and fewer delays when it’s time to review contracts or move deals forward.

Better Consistency Across Every Contract

Say one contract uses “Termination for Convenience” and another says “Early Exit” for the same clause. That kind of variation can create confusion during contract reviews and slow down the approval process.

Consistency matters, especially when legal teams are managing large volumes of agreements across departments or clients.

Legal departments often rely on approved clauses and preferred language to reduce risk and keep legal drafting under control. AI drafting tools help stick to that standard.

Once the language is set, the system reuses it across documents, so you're not rewriting the same section or fixing small differences that slip in.

This also makes contract review easier. AI contract review tools can flag wording that doesn’t match your usual terms or alert you when something’s been changed. That helps maintain quality across legal agreements and saves time during review cycles.

Time Savings for the Whole Team

Ever spent an hour fixing typos in a contract you’ve already reviewed three times? Or passed the same document between five people just to get the formatting right? For many in the legal profession, that’s a regular part of the job.

But in 2025, AI technology changes that. It handles the repetitive work, like filling in standard clauses or cleaning up formatting, so the team can focus on what actually needs legal expertise. Junior staff get reliable starting points, and senior staff don’t have to waste time on edits that could’ve been automated.

Law firms and in-house teams using AI drafting and contract review software can move faster without adding extra pressure. Everyone stays focused on higher-level work, not reworking the same document over and over.

For legal teams dealing with dozens or even hundreds of contracts a month, the time saved adds up fast. The more routine work AI takes off your plate, the more your team can get done with the same resources.

Built-In Tracking and Management

Managing contract drafts, edits, and approvals can get messy when you're jumping between email threads, shared drives, and multiple tools. AI drafting tools that connect with contract management systems help simplify all of that.

You can write, review, and store everything in one place—no need to chase down the latest version or switch platforms mid-process.

Legal teams also benefit from having legal data organized in a way that’s easy to search and use. When contracts are stored properly, it’s much easier to pull up past deals, check language, or compare terms. Over time, this builds a stronger database that helps improve both drafting and decision-making.

Generative AI systems also learn from these existing contracts. The more you feed in, the more accurate and useful the suggestions become.

Here’s what you can do with built-in tracking and management:

  • Keep all versions of a contract in one system
  • Search existing contracts by term, party, or clause
  • Track changes and approvals without extra tools
  • Train AI models using your actual legal documents
  • Let legal teams store and analyze contracts more efficiently

How Reliable Is AI Contract Drafting?

If you're wondering whether AI can really be trusted to draft contracts, the short answer is: yes, with the right setup.

AI tools have gotten good at writing structured, well-organized drafts using standard contract terms and patterns pulled from real legal agreements. They’re fast, consistent, and helpful for cutting down on repeat work.

But reliability isn't just about how fast something works. Legal enforceability still depends on the details, and that’s where human review matters.

AI handles structure and language, but it doesn’t understand business goals or the fine points of a negotiation. You still need someone to check the terms and make sure they’re right for the deal.

That said, there’s real value in using artificial intelligence to handle the first few steps. These tools reduce formatting errors, flag missing sections, and make sure you’re not forgetting key details. With document automation built in, it’s easier to stay consistent and meet deadlines without rushing through contract review.

When used the right way, AI drafting tools support your work, not replace it. The key benefit is speed, but the real strength is helping legal teams stay focused on what matters while the system takes care of the basics.

Take The Next Step Towards AI Empowerment

If writing, reviewing, and tracking agreements is pulling time away from everything else on your plate, it might be time to rethink the process. AI isn’t here to reinvent your work. It just makes the parts that slow you down easier to manage.

Aline

Aline helps you get drafts out faster, catch issues early, and keep everything in one place. No jumping between tools. No digging through folders. Just a simpler way to stay on top of contracts without the usual stress.

You don’t need to commit to a full rollout. Try it on one agreement. See how it fits. 

Start your trial today!

FAQs About AI Contract Drafting

Can I use AI to draft a contract?

Yes, AI can draft contracts based on your inputs. It can create first drafts, suggest clauses, and flag missing sections, helping reduce drafting time and manual work. That said, human oversight is still important to make sure the final version fits the situation and complies with legal standards.

What is the best AI for drafting contracts?

The best AI depends on your needs, but tools like Aline are built specifically for the legal field. They combine AI drafting, version control, and review features to help reduce time spent on routine tasks while maintaining consistency and improving client satisfaction.

Can ChatGPT write contracts?

ChatGPT can help with basic contract structure and wording, but it isn’t specialized for legal work. It lacks built-in tools like version tracking, redlining, and integrated workflows. For use in the legal field, it’s better to use platforms designed for contract work with features that handle potential risks and support AI review.

Can AI do contract analysis?

Yes. AI tools can analyze contracts, extract key terms, and identify issues. This is especially helpful when reviewing large volumes of agreements in platforms like Microsoft Word, where manual review would be time-consuming. It also gives law firms and legal teams a competitive edge with faster reviews and improved accuracy.

How does AI improve real-time collaboration and compliance checks?

AI tools allow real-time collaboration on contracts while running automated compliance checks in the background. They help protect sensitive information and improve accuracy by flagging issues before the review stage.

Draft, redline, and query legal documents 10X faster with AI

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