How to Use AI for Legal Document Drafting & Review

20 February، 2025

0 51 5 minutes read

Artificial Intelligence (AI) is transforming industries across the board, and the legal sector is no exception. One of the most significant areas where AI is making an impact is in legal document drafting and review . Traditionally, these tasks have been time-consuming, requiring meticulous attention to detail and a deep understanding of legal language. However, with AI-powered tools, lawyers and legal professionals can now streamline these processes, reduce errors, and improve efficiency.

In this article, we will explore how AI can be used for legal document drafting and review, including the benefits, key tools, and step-by-step guidance on integrating AI into your legal workflow.

Why Use AI for Legal Document Drafting & Review?

Before diving into the “how,” let’s first understand the “why.” Here are some compelling reasons why AI is becoming indispensable in legal document management:

1. Time Efficiency

Drafting and reviewing legal documents can take hours, especially when dealing with complex contracts or regulatory filings. AI can automate repetitive tasks, allowing lawyers to focus on higher-value work.

2. Accuracy and Consistency

AI tools are designed to identify inconsistencies, missing clauses, or potential legal risks that might be overlooked by human eyes. This ensures that documents are accurate and consistent.

3. Cost Savings

By reducing the time spent on manual drafting and review, law firms can lower operational costs and pass those savings on to clients.

4. Scalability

AI allows firms to handle larger volumes of documents without needing to hire additional staff. This is particularly useful for large-scale contract reviews or due diligence exercises.

5. Risk Mitigation

AI can flag potential legal issues, such as non-compliance with regulations or ambiguous language, helping to mitigate risks before documents are finalized.

Key AI Tools for Legal Document Drafting & Review

Several AI-powered tools are available today that cater specifically to legal professionals. These tools leverage Natural Language Processing (NLP), machine learning, and predictive analytics to assist with document creation and analysis. Some popular platforms include:

1. Kira Systems

Use Case : Contract analysis and due diligence.
Features : Kira uses machine learning to extract and analyze key provisions from contracts, helping lawyers quickly identify important clauses and potential risks.

2. LawGeex

Use Case : Automated contract review.
Features : LawGeex compares contracts against predefined legal policies and flags deviations or missing terms. It also provides actionable recommendations for improving contract language.

3. ROSS Intelligence

Use Case : Legal research and document drafting.
Features : ROSS uses NLP to help lawyers find relevant case law and statutes, which can then be incorporated into legal documents.

4. Casetext

Use Case : Legal research and brief drafting.
Features : Casetext’s AI assistant, CARA, helps lawyers draft more persuasive briefs by analyzing past cases and suggesting relevant legal arguments.

5. DocuSign Insight

Use Case : Contract lifecycle management.
Features : DocuSign Insight uses AI to search, analyze, and manage contracts throughout their lifecycle, from drafting to execution.

6. LegalSifter

Use Case : Contract review and negotiation.
Features : LegalSifter reviews contracts line by line, providing explanations and suggestions for improvement based on customizable criteria.

How to Use AI for Legal Document Drafting

Step 1: Define Your Requirements

Before using AI for drafting, clearly define the type of document you need to create (e.g., contract, lease agreement, nondisclosure agreement). Identify key sections, clauses, and any specific legal requirements that must be included.

Step 2: Choose the Right AI Tool

Select an AI tool that aligns with your needs. For example:

If you’re drafting contracts, consider tools like LegalSifter or LawGeex .
For broader legal research and drafting, ROSS Intelligence or Casetext may be more suitable.

Step 3: Input Relevant Information

Most AI tools require input data to generate drafts. This could include:

Parties involved
Key terms and conditions
Governing laws
Specific clauses you want included

For instance, if you’re creating a lease agreement, you’d provide details about the tenant, landlord, property description, rent amount, and duration.

Step 4: Generate the Draft

Once the necessary information is fed into the system, the AI tool will generate a preliminary draft. The output will typically include standard clauses, formatting, and placeholders for additional details.

Step 5: Customize and Refine

While AI-generated drafts are often comprehensive, they may not fully capture the nuances of your situation. Review the document carefully and make adjustments as needed. You can also use AI tools to suggest alternative phrasing or highlight areas that require further clarification.

How to Use AI for Legal Document Review

Step 1: Upload the Document

Begin by uploading the document you wish to review into the AI platform. Most tools support various file formats, including PDFs, Word documents, and scanned images.

Step 2: Run an Initial Analysis

The AI tool will automatically scan the document for key elements such as:

Important clauses (e.g., termination, indemnification)
Missing provisions
Ambiguities or inconsistencies
Compliance with applicable laws

For example, Kira Systems might extract all confidentiality clauses from a series of contracts, while LawGeex could compare a draft contract against company policies to ensure alignment.

Step 3: Review AI Recommendations

After the initial analysis, the tool will present its findings along with actionable insights. These might include:

Suggestions for rewording unclear language
Alerts for high-risk clauses
Recommendations for adding missing terms

Step 4: Make Necessary Edits

Based on the AI’s feedback, revise the document accordingly. Pay close attention to flagged sections, but don’t rely solely on the AI—human oversight remains essential.

Step 5: Finalize and Approve

Once you’ve addressed all flagged issues, conduct a final review to ensure the document meets your standards. After approval, the document can be shared with stakeholders or executed.

Best Practices for Using AI in Legal Workflows

While AI offers numerous advantages, it’s important to use it responsibly. Here are some best practices to keep in mind:

1. Understand the Limitations

AI tools are powerful, but they’re not infallible. Always double-check outputs, especially for critical documents like merger agreements or litigation filings.

2. Train the AI

Many AI platforms allow users to train the system based on their firm’s unique preferences and templates. Take advantage of this feature to improve accuracy over time.

3. Maintain Human Oversight

AI should complement—not replace—human expertise. Ensure that experienced lawyers remain involved in the drafting and review process to catch subtleties that AI might miss.

4. Stay Updated on Regulations

AI tools are only as good as the data they’re trained on. Keep abreast of changes in laws and regulations to ensure your AI systems remain compliant.

5. Protect Client Confidentiality

When using cloud-based AI tools, verify that the provider adheres to strict data protection protocols to safeguard sensitive client information.

Challenges and Considerations

While AI has immense potential, there are challenges to consider:

1. Cost

High-quality AI tools can be expensive, particularly for smaller firms. Evaluate whether the investment aligns with your budget and expected ROI.

2. Data Privacy

Uploading confidential documents to third-party platforms raises concerns about data security. Always choose reputable vendors with robust encryption and compliance certifications.