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A lot of people are turning to AI for help with everyday work, and contract review is no exception. It’s not just startups or tech companies giving it a shot. Even legal professionals are starting to explore tools like ChatGPT to handle the early parts of the contract review process.
And honestly, it makes sense. Legal contracts can be long, repetitive, and packed with dense language. So, people have started using ChatGPT to summarize terms, check for clarity, and speed up routine reviews.
But here’s the catch: reading and understanding a contract is one thing. Knowing how it applies to your business, your obligations, and your risks? That’s something else entirely.
So yes, ChatGPT can help, but only if you know how and when to use it. This guide breaks down what AI does well, what still needs human input, and how to get the most out of tools like ChatGPT without compromising on accuracy or legal standards.
You can use ChatGPT for contract review, but it’s not a full replacement for legal professionals.
The tool can go through legal contracts, pull out key points, and even suggest changes to the wording. It’s especially helpful if you’re trying to make sense of dense language or compare sections across multiple documents.
That said, the contract review process involves more than just reading what’s on the page. It requires judgment, context, and an understanding of contract law.
ChatGPT, and most general AI tools, for that matter, don’t know your company’s preferred terms, your risk tolerance, or the specific legal rules that apply to your industry. So while it can support you in the early stages, it’s not something you should rely on alone.
At the end of the day, it is a helpful tool, but not a decision-maker. If you’re working with high-value contracts or anything that could carry risk, it’s still smart to bring in legal expertise before signing off.
Looking for an AI solution built specifically for legal teams? Aline lets you draft, redline, and analyze contracts with legal-first tools. Give it a try today!
Using ChatGPT to review contracts can make parts of the process faster and easier, especially when you prompt it well.
While it doesn’t replace a lawyer, general-purpose AI like ChatGPT can help you understand contracts and catch things you might otherwise miss on a first read.
Here’s what it does well:
When you prompt ChatGPT with a clear question, like “What’s the renewal clause here?” or “Are there any red flags in the indemnity section?”, you’ll usually get a helpful answer.
Then again, it won’t give legal advice, but it can save you time and give you a solid starting point for deeper review.
As mentioned, AI tools like ChatGPT are helpful, but they don’t replace real-world experience. When it comes to ensuring compliance and understanding the deeper meaning behind contract language, you still need a legal advisor or a qualified legal team involved.
Here’s where human review matters most:
Even the best AI won’t know your internal policies or what your company is comfortable accepting. That’s why contract review still needs people who understand the full picture and not just the text on the page.
Once you understand what ChatGPT can and can’t do, it helps to follow a clear process. Here's a simple way to approach contract review using AI without losing control of the details:
Before using ChatGPT, make sure the contract is in a format it can read. If it’s a scanned PDF or image, convert it to text first. Word documents or copy-pasted text work best.
You’ll also want to remove anything that isn’t relevant information, like footers, electronic signatures, or formatting notes, since these can confuse the AI. Keep the structure clean so you and ChatGPT can focus on the actual terms.
Note that this step helps set a solid foundation for the rest of the review process and makes it easier to ask clear questions later on.
Generative AI works best with manageable chunks of contract text. If you paste the whole contract into one prompt, it might miss important details or give vague answers. That’s because tools like ChatGPT have input limits and can only process so much at once.
To get better results, break the document into sections, such as termination clauses, payment terms, or confidentiality agreements, then review them one at a time. This approach keeps the AI focused and reduces the risk of skipped or misunderstood content.
To get real value from a contract review assistant like ChatGPT, you need to be direct. Generic questions lead to generic answers.
The clearer your prompt, the better the response, especially when you paste contract text in smaller chunks.
Here are some example tasks you can assign:
If you're looking at specific details like indemnity, notice periods, or early termination fees, say so. The more targeted your question, the more useful the answer. AI works well when you guide it step-by-step, and you can't expect it to figure everything out on its own.
One of the easiest ways to use ChatGPT during contract review is to ask for a quick summary of a section. This helps you get a clear understanding of what the clause says without reading through dense legal language.
For example, if you're looking at an indemnity clause, you can paste the text and ask, “Can you explain this in layman’s terms?” ChatGPT will respond with a simpler version that’s easier to digest, but you should still check that it’s legally sound.
You can also use AI to reword parts of the contract so it’s easier for both parties to understand. If something feels too vague or overly technical, ask ChatGPT to rewrite it in clear, professional language.
Just remember, even if the rewrite sounds good, it doesn’t mean the clause is legally valid. You’ll want to review it or have a lawyer confirm that the contract aligns with your business needs and legal standards.
Another helpful way to use ChatGPT is by asking it to flag anything that might be confusing or risky. Large foundational models can scan through contract language and point out terms that seem unusual, vague, or inconsistent with typical industry standards or compliance standards.
For example, after pasting a section, you can ask: “Are there any terms in this clause that seem unclear or risky?”
ChatGPT might point out things like:
It’s not perfect, and it won’t always catch everything, but it can spot patterns or odd phrasing that deserve a second look. This is especially helpful when you’re reviewing a third-party agreement or when time is tight.
Tracking changes between contract drafts is one of the trickiest parts of the review process. With different parties involved and edits made across email threads or tools, it’s easy to miss adjustments that affect meaning or risk.
Luckily, ChatGPT can help with quick contract comparison. Paste two versions of a clause (or even full sections) and ask ChatGPT to point out what’s changed. It can highlight additions, removals, and shifts in tone that might impact your rights, obligations, or compliance issues.
For example, you can ask:
This works across various contract types and gives you a faster way to understand how revisions affect the agreement. It’s not a replacement for version tracking tools, but it can help you make sense of edits before legal teams weigh in.
After you’ve worked through the contract using ChatGPT, the final step is handing it off to someone with legal training. Sure, AI can speed things up, but reviewing contracts is still part of serious legal practice, and skipping expert input can put your company at risk.
A legal expert can identify missing terms, unclear language, or gaps that might become issues late, whether related to dispute resolution, negotiation strategies, or compliance with the law.
Always remember: AI-generated outputs may look clean, but they don’t always reflect how a contract will function in practice.
Without a legal check, there’s a chance you’ll miss key risks that could affect your bottom line. An expert brings context, looks at how terms align with business goals, and makes sure the contract meets all necessary legal requirements.
AI tools like ChatGPT have made contract review faster and more accessible, but speed isn’t everything. Accuracy, compliance, and contract risk management still matter just as much, and in many cases, more.
If you’re using AI to help review legal contracts, you need something that works with your team, understands your standards, and keeps your data safe.
So ask yourself if you are:
If so, it might be time to stop patching together tools and start using a platform built for legal work.
Aline AI goes beyond general-purpose chatbots. It drafts, redlines, and analyzes your contracts with a legal-first approach. You get fast, reliable reviews powered by your own AI Playbooks, instant answers from your AI Repository, and total control with unlimited AlineSign signatures.
Over 2,000 users already rely on Aline to manage their contracts with speed, structure, and confidence.
Try Aline AI today for free and experience a better way to manage your contracts from start to finish.
Yes, you can use ChatGPT to review a contract by summarizing sections, spotting unclear terms, and rewording language for clarity.
Just remember, it doesn't understand context the same way a human does, so it's best used alongside a legal review, especially for complex clauses like termination conditions or indemnity terms.
If you're using the free or public version of ChatGPT, avoid uploading sensitive information, client confidentiality clauses, or customer data. For secure contract reviews, use platforms that offer private AI environments with legal-grade security.
Yes, it can help you understand lease terms like rent increases, the effective date, and the responsibilities of each party. However, leases often include local legal terms, so you should double-check anything important with a legal advisor.
Not exactly. It can flag vague or inconsistent wording, but it doesn’t fully grasp intent or spot fallback positions the way a lawyer might. It’s useful for non legal teams to get a basic sense of risk, but final reviews should still be handled by professionals.
Brent is an attorney, a full-stack JavaScript engineer and the CEO of Aline.
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