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

Daniel D. on ContractsCounsel
View Daniel
5.0 (8)
Member Since:
September 2, 2024
Scott S. on ContractsCounsel
View Scott
5.0 (69)
Member Since:
October 27, 2021

Scott S.

Attorney
Free Consultation
New York, NY
19 Yrs Experience
Licensed in NY
Benjamin Cardozo School of Law

I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.

Recent  ContractsCounsel Client  Review:
5.0

"Scott was great, very informative, helpful, and professional. Will use again!"

Amber M. on ContractsCounsel
View Amber
5.0 (32)
Member Since:
March 8, 2023

Amber M.

Attorney
Free Consultation
Arizona
11 Yrs Experience
Licensed in AZ, OK
J. Reuben Clark Law School

Amber Masters has 11 years of experience as a contracts attorney, helping small businesses with an array of agreements, such as purchase agreements, master service agreements, and employment contracts. She has an extensive background assisting health care providers through practice transitions including dentists, doctors, and other health care professionals. She is a highly rated and acclaimed estate planning attorney and personal finance expert, who has been featured on CNBC, NBC, and Yahoo Finance. She successfully launched and sold a fintech startup and can empathize with the issues small and mid-size businesses face. Licensed in Oklahoma and Arizona.

Recent  ContractsCounsel Client  Review:
5.0

"Great experience working with Ms. Amber. She was thorough, knowledgeable, and explained the contract terms and potential concerns very clearly. I really appreciated her practical recommendations and prompt communication. Highly recommend!"

Alan B. on ContractsCounsel
View Alan
5.0 (3)
Member Since:
November 25, 2023

Alan B.

Business Attorney
Free Consultation
Tulsa, OK
12 Yrs Experience
Licensed in AR, MO, MS, OK
University of Tulsa College of Law

At Barker Law, we provide clients with superior service in trust, probate, and estate matters and litigation, contract drafting and review, outside general counsel services, negotiation, commercial litigation, and regulatory navigation. We confidently handle transactional and regulatory matters for businesses and individuals. As our feedback shows, we excel at meeting and exceeding our clients needs.

Karl D. S. on ContractsCounsel
View Karl D.
4.7 (2)
Member Since:
October 28, 2022

Karl D. S.

Attorney
Free Consultation
Middlebury, Connecticut
14 Yrs Experience
Licensed in CT, MA
Pepperdine University School of Law

Karl D. Shehu, has a multidisciplinary practice encompassing small business law, estate and legacy planning, real estate law, and litigation. Attorney Shehu has assisted families, physicians, professionals, and people of faith provide for their loved ones by crafting individualized estate and legacy plans. Protecting families and safeguarding families is his passion. Attorney Shehu routinely represents lenders, buyers, sellers, and businesses in real estate transactions, researching and resolving title defects, escrowing funds, and drafting lending documents. To date, Attorney Shehu has closed a real estate deal in every town in Connecticut. As a litigator, Attorney Shehu has proven willing to engage in contentious court battles to obtain results for his clients. While practicing at DLA Piper, LLP, in Boston, Attorney Shehu represented the world’s largest pharmaceutical companies in multidistrict litigations filed throughout the United States. He has been a passionate advocate for immigrants and the seriously injured, frequently advising against lowball settlement offers. He is willing to try every case to verdict, and he meticulously prepares every case for trial. Attorney Shehu began his legal career as a consumer lawyer, utilizing fee-shifting statutes to force unscrupulous businesses to pay the legal fees of aggrieved consumers. For example, in Access Therapies v. Mendoza, 1:13-cv-01317 (S.D. Ind. 2014), Attorney Shehu utilized unique interpretations of the Trafficking Victims Protection Act, Truth-in-Lending Act, and Racketeer Influenced and Corrupt Organizations Act (RICO) to obtain a favorable result for his immigrant client. Attorney Shehu is a Waterbury, Connecticut native. He attended Our Lady of Mount Carmel grammar school, The Loomis Chaffee School, and Chase Collegiate School before earning degrees from Boston College, the University of Oxford’s Said Business School in England, and Pepperdine University School of Law. At Oxford, Karl was voted president of his class. Outside of his law practice, Attorney Shehu has worked to improve the world around him by participating in numerous charitable endeavors. He is a former candidate for the Connecticut Senate and a parishioner of St. Patrick Parish and Oratory in Waterbury. In addition, Attorney Shehu has written extensively on the Twenty-fifth Amendment and law firm retention by multinational firms.

J.R. S. on ContractsCounsel
View J.R.
5.0 (4)
Member Since:
December 29, 2023

J.R. S.

Business Lawyer
Flower Mound, Texas
7 Yrs Experience
Licensed in TX
Touro Law, New York

Experienced Attorney with an MBA in Finance who provides a business-oriented mindset and thrives in a collaborative environment with a-typical challenges. Possesses exceptional skills in legal research, drafting and enforcing contracts, skillful in negotiations and mediations, drafts extremely persuasive pleadings, attacks depositions with zeal for my clients. Experience includes Business Management and IT Consulting with a successful track record managing outside relationships, associated costs, and optimizing outcomes for client(s). Effectively restructures antiquated business processes and incorporates technology and best practices to effectuate progressive outcomes for business clients. Partners collaboratively with business leaders to advance company objectives while minimizing risk to ensure internal and external compliance, increased profitability, and diverse practices. Dynamic communicator with the interpersonal skills to build trusting relationships with executives, management, and employees of various backgrounds, expertise, and styles.

Recent  ContractsCounsel Client  Review:
5.0

"JR was fantastic. Quick to digest a complex, nuanced situation and generated an effective document as agreed-upon. Highly recommend!"

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 Draft Service Contract for Editorial Services Review
  • Texas
  • 6 lawyer bids
  • $675 - $1,600
View Details
Pennsylvania Auto Repair Service Contract Drafting
  • Pennsylvania
  • 7 lawyer bids
  • $1 - $1,925
View Details
Illinois Vending Machine Contract Review
  • Illinois
  • 10 lawyer bids
  • $350 - $1,800
View Details
Tennessee Ecommerce Business Contract Review
  • Tennessee
  • 4 lawyer bids
  • $395 - $1,200
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 24,421 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 24,421 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