Home Blog Business Contract AI Mistakes: Common Errors, Avoidance Tips

Jump to Section

Quick Facts — Business Contract Lawyers

What are Business Contract AI Mistakes?

A business contract is an agreement between parties that explains the terms of a business deal. Since it specifies duties and rights parties have under the conditions of the deal, it needs to be drafted carefully.

If you’re relying on an AI tool to help you draft a business contract, there are some common things to be aware of.

Read the rest of this article to explore the most common business contract AI mistakes, how to avoid them when drafting your agreements, and how a qualified lawyer can help you create business contracts that are clear and legally sound.

What are Common Business Contract AI Mistakes?

Some of the most commonly-seen mistakes that AI tools make when drafting business contracts include the following:

  • Missing business-related information. While an AI tool might provide terms and clauses required for the specific business contract you’re drafting, it won’t tailor these to your business deal. It lacks bigger picture thinking, such as in terms of specific risks your business could be exposed to.
  • Lack of additional terms. An AI tool might state specific deliverables and project milestones required under the agreement but not consider additional details that are also important, such as conditions for nonpayment or post-termination duties. These can result in disputes.
  • Unrealistic liability clauses. It’s common for AI to provide generalized or very broad information regarding liability. This can put parties at risk of disputes or taking on unnecessary risk.
  • Lack of customer data protection. Many business contracts will involve accessing and handling customer data. Without specific and detailed clauses in the agreement, you can leave sensitive information exposed.
  • Incorrect use of material breach. An AI tool might mention material breaches in the drafted document without providing clarity about what constitutes a material breach. This ambiguity, although seemingly minor, can result in misunderstandings or disputes.
  • Insufficient workflow information. AI could totally neglect to include information about real-world business operations, such as how approval processes will work or what reporting obligations exist. This creates a less practical document that creates confusion between parties.
  • Lack of leverage insight. Unlike a human attorney, an AI tool can’t expertly guide you on what leverage you have during contract negotiations to achieve more favorable terms.

How Can You Avoid Making Business Contract AI Mistakes?

When drafting a business contract with the use of AI tools, there are ways in which you can minimize the risk of mistakes. Here are tips on how to use them safely and responsibly.

Provide the Business Contract Terms

Instead of allowing an AI tool to draft an entire business contract, you need to know what terms you wish to include in the contract so that you can guide it to provide you with specific, detailed information. This will also prevent it from inventing information that isn’t relevant or useful.

Request Assumptions

A trick you can use when prompting AI to draft your business contract is to ask it to provide a list of any assumptions it could be making from the start of the process. This will prevent it from making mistakes in the document, such as using the incorrect legal jurisdiction for your contract that can make it invalid.

Edit the First Draft

It’s up to you to fact-check everything the AI tool has included in the business contract. During your review, you can also prompt the AI tool to highlight all subjective terms in the copy, such as “reasonable” and “satisfactory,” so that you can make them more specific to your requirements.

How Can a Lawyer Help You Avoid Business Contract AI Mistakes?

You should hire a lawyer to review your AI-generated business contract to gain confidence that it’s clear, specific, and protects your commercial interests. Here’s how they will help you during the review process:

  • They’ll consider your business model and risk profile to ensure you’re not responsible for unnecessary risks.
  • They’ll consider worst-case scenarios that AI can’t, helping to protect your interests.
  • They’ll revise ambiguous, confusing language in the business contract that could be open to misinterpretation, increasing your risk of disputes.
  • They’ll clear up legal jargon that AI tools might resort to using to make the text appear polished. This makes the contract terms easy for all parties to understand.
  • They’ll help you negotiate with the other party should this be required to achieve more favorable terms.

Where to Find a Lawyer for Business Contract Drafting and Review

If you need to hire a lawyer to help you review an AI-generated business contract or draft one for you from scratch, you don’t have to take lots of time out of your schedule to find one. On online legal platforms, you can access a network of qualified lawyers who are experienced to help you.

ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers. All lawyers on the platform have years of experience in contract drafting and review.

Here are the steps to follow if you want to request one of ContractsCounsel’s lawyers to draft or review your business contract so that it’s legally valid and clear:

  1. Go to the ContractsCounsel marketplace.
  2. Post your project for free. Include a few details to help you find the most suitable lawyer.
  3. Receive multiple bids from lawyers directly on the platform who have the experience to help you.
  4. Review the lawyers’ profiles. Take some time to go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
  5. Connect with a lawyer you think is best suited to your requirements and hire them for a flat fee.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Meet some of our Lawyers

Melissa G. on ContractsCounsel
View Melissa
5.0 (1)
Member Since:
August 5, 2021

Melissa G.

Managing Attorney
Free Consultation
Chicago
22 Yrs Experience
Licensed in DC, IL, MI, OH
University of Michigan

I provide practical, plain-English legal guidance to solopreneurs and small businesses who want to build strong foundations and make informed decisions with confidence. With 20+ years of experience—including 16 years in-house advising senior and executive leaders—I bring the insight of a trusted legal partner who understands how legal strategy supports long-term business growth. My clients walk away feeling supported, seen, and empowered. They know I genuinely care about their success and bring more than just legal knowledge—I bring a coach’s mindset, a problem-solver’s lens, and a commitment to helping them protect what they’ve worked hard to build. Whether you’re reviewing contracts, forming your business, protecting your brand, or need ongoing legal support, I’m here to deliver clear, actionable guidance and solutions that fit your business.

Christina M. on ContractsCounsel
View Christina
5.0 (12)
Member Since:
June 22, 2023

Christina M.

Legal Consultant
Free Consultation
Las Vegas, NV
19 Yrs Experience
Licensed in NV
UNLV Boyd School of Law

I am a regulatory transactional attorney with 16 years of in-house experience, largely in the gaming/gambling industry. I have negotiated various types and sizes of contracts from janitorial services for a small commercial building to multi-million dollar technology transactions. I also have a strong regulatory background that strengthens my ability to navigate contracts that are subject to stringent regulations.

Recent  ContractsCounsel Client  Review:
5.0

"Great lawyer and easy to work with. She really cares about your business."

Ryan W. on ContractsCounsel
View Ryan
5.0 (11)
Member Since:
June 8, 2021

Ryan W.

Attorney
Free Consultation
Mechanicsburg, PA
16 Yrs Experience
Licensed in PA
Widener University Commonwealth School of Law

Ryan A. Webber focuses his practice primarily on Estate Planning, Elder Law, and Life Care Planning. His clients range from young families concerned about protecting their family as well as aging individuals. Ryan provides Estate Planning, Trust Planning, Special Needs Planning, Public Benefit Planning, and Estate Administration. Ryan focuses on the holistic approach to the practice of elder law which seeks to ensure clients are receiving good care when needed and that they preserve enough assets with which to pay for such care. Many families and individuals also come to Ryan for preparation of their wills, power of attorney, and healthcare guidance documents. Additionally, Ryan assists small and medium sized business owners with their organizational and planning needs. From starting or winding down a business, Ryan provides quality business advice.

Recent  ContractsCounsel Client  Review:
5.0

"Ryan was very responsive and helpful. He did a wonderful job on my contract. I highly recommend him!"

Dan "Dragan" I. on ContractsCounsel
View Dan "Dragan"
5.0 (38)
Member Since:
September 21, 2022

Dan "Dragan" I.

Principal Attorney
Free Consultation
Chicago, Illinois
27 Yrs Experience
Licensed in IL
University of Illinois College of Law

I received a bachelor’s degree in philosophy from Northwestern University in 1996 and then got my JD at University of Illinois College of Law in 1999. I have been a lawyer helping people with legal issues in the United States and Internationally since then. That includes drafting and reviewing contracts. I am also passionate about helping small and medium businesses with trademark registration and trademark-related legal projects. The law can be confusing and complicated for people, and I am passionate about providing professional legal services to my clients while simultaneously making the legal process less confusing and stressful for them. My goal is to help clients navigate through both good and difficult times by tailoring my skills, experience, and services to their specific needs.

Recent  ContractsCounsel Client  Review:
5.0

"Dan was thorough, responsive, and explained the trademark process clearly. Highly recommended."

Christopher M. on ContractsCounsel
View Christopher
4.9 (8)
Member Since:
August 16, 2022

Christopher M.

Corporate Counsel
Free Consultation
North Cariolina
6 Yrs Experience
Licensed in CA
California Western

I am a corporate attorney with several years of experience with contracts, corporate and business, government projects, and employment law.

Recent  ContractsCounsel Client  Review:
4.3

"Chris helped us put together a quick SaaS contract. HE is very nice and professional."

Samuel R. on ContractsCounsel
View Samuel
5.0 (63)
Member Since:
October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
7 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Business Transactional Agreements, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the Super Lawyers Southwest Rising Stars list for 2024 - 2026. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, and also trademark registration and licensing.

Recent  ContractsCounsel Client  Review:
5.0

"Thanks Samuel for your thorough review of my materials. I'm incredibly impressed by your prompt turnaround in drafting my letter. The letter captured the facts perfectly and struck exactly the right tone."

Clara D. on ContractsCounsel
View Clara
Member Since:
October 8, 2021

Clara D.

Principal
Illinois
23 Yrs Experience
Licensed in IL
University of Chicago

Clara Duffield is a seasoned financial services, technology, privacy, business, intellectual property, and real estate lawyer, with in-house and large firm experience. She currently represents a range of clients, from start-ups to large, heavily-regulated companies, in a wide variety of transactional matters. After graduating from The University of Chicago Law School, Clara spent eight years in private practice representing clients in complex commercial real estate, merger and acquisition, branding, and other transactional matters. Clara then worked as in-house counsel to a large financial services company, handling intellectual property, vendor contracts, technology, privacy, cybersecurity, licensing, marketing, and otherwise supporting general operations. She opened her own practice in September of 2017. Duffield Law provides strategic and flexible representation to businesses of all sizes. Its clients include entrepreneurs and early-stage startups to Fortune 100 companies. From outside general counsel or volume work to discreet assignments, our small firm model allows us the flexibility to provide only the legal services a client needs, without sacrificing the quality all clients deserve. With a depth of in-house and large law firm experience, we work with clients to thoughtfully assess risk, identify and engage subject matter experts, and manage legal spend.

Find the best lawyer for your project

Browse Lawyers Now

See Real Business Contract Projects

Florida exculpatory clause/hold harmless agreement Drafting
  • Florida
  • 2 lawyer bids
  • $380 - $750
View Details
Delaware Review Founder's Stock Award Agreement And Omnibus Incentive Plan Review
  • Delaware
  • 4 lawyer bids
  • $700 - $1,225
View Details
Texas Contract / Consulting Agreement / Service Proposal Drafting
  • Texas
  • 8 lawyer bids
  • $400 - $1,250
View Details
Pennsylvania Auto Repair Service Contract Drafting
  • Pennsylvania
  • 7 lawyer bids
  • $1 - $1,925
View Details
North Carolina Contract Review
  • North Carolina
  • 9 lawyer bids
  • $300 - $999
View Details
Texas Draft Contract for Job Seekers or Job Posters Drafting
  • Texas
  • 10 lawyer bids
  • $325 - $1,050
View Details

See all Business Contract projects

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Business Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 21,076 reviews
CONTRACT LAWYERS BY TOP CITIES
See All Business Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a Business Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 21,076 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city