As generative AI becomes increasingly accessible and pervasive, many companies are experimenting with these tools to draft full legal agreements. For start-ups and businesses with limited resources, the appeal is obvious: AI can produce contracts quickly and at a fraction of the cost of traditional legal drafting. What once may have required days of attorney time and high legal fees can now theoretically be generated in minutes with a simple prompt.
While this efficiency is attractive, it comes with significant risks. AI-generated agreements frequently contain significant issues that ultimately make them unusable. Unlike an experienced attorney, AI lacks legal judgment, contextual understanding, and knowledge of specific client needs. It can generate provisions that appear polished on the surface but collapse under scrutiny.
