Legal Review Just Became Accessible and Affordable
Contract review used to require hiring lawyers and spending thousands of dollars on legal review. Lawyers spent days reading contracts, extracting terms, identifying risks, and flagging issues. AI legal tools now complete this work instantly. AI extracts key terms from contracts automatically. AI identifies risks and deviations from your standards. AI flags problematic clauses. AI compares versions to spot changes. AI generates redlines directly in Word or Google Docs. What used to take a lawyer weeks now takes AI minutes. This guide covers using AI for legal document review and contract analysis.
What AI Legal Tools Do
AI legal tools use natural language processing to understand legal documents. They extract key terms, identify risks, compare contracts, and suggest revisions. Most AI legal tools use playbooks, which are lists of specific checks you want made on documents. You define your standards in the playbook. The AI then reviews every contract against those standards, flagging deviations automatically.
Key Capabilities of AI Legal Tools
Clause extraction pulls out specific terms from contracts so you see them clearly. Risk detection identifies problematic language or missing protections. Version comparison shows exactly what changed between contract versions. Playbook enforcement ensures contracts meet your standards. Auto-redlining suggests fixes directly in your document. Due diligence automation handles M&A and high-volume reviews. All of these capabilities work together to transform legal review from tedious to efficient.
- Automatic clause extraction and term identification
- Risk scoring showing severity of issues
- Playbook-based enforcement of company standards
- Multi-version comparison highlighting changes
- Auto-redlines with explanations for suggested changes
- Due diligence support for M&A transactions
- Compliance checking against regulations
Top AI Legal Tools Compared
Different tools specialize in different legal areas. Choose based on your specific needs and document types.
| Tool | Best For | Key Features | Cost |
|---|---|---|---|
| LEGALFLY | In-house legal teams | Clause extraction, playbooks, auto-redlines, Microsoft Word integration | 49 dollars per user monthly |
| Spellbook | Contract negotiation | AI redlining, revision suggestions, deal tracking | Custom pricing |
| Juro | Contract lifecycle management | Drafting, review, negotiation, e-signature, automation | Custom pricing |
| Kira Systems | M&A due diligence | Clause extraction, large-scale processing, custom fields | Custom pricing |
Setting Up AI Contract Review
Start by documenting your contract standards. What clauses are critical? What terms are acceptable? What language is risky? Codify these into a playbook. Then upload your contracts and let AI review them against your standards. This systematic approach ensures consistent review.
- Define your company's contract standards and what you want reviewed
- Create a playbook listing specific checks and acceptable terms
- Choose an AI legal tool that integrates with your workflow
- Upload a sample contract and test the tool's effectiveness
- Refine your playbook based on results
- Roll out across all contract types your company uses
- Review AI suggestions before accepting and keep final say
Specific Use Cases for AI Legal Review
These are the most common contract types where AI legal tools deliver immediate value.
- Vendor agreements: AI extracts payment terms, termination conditions, and liability limits
- NDAs: AI ensures confidentiality terms are standard and protections are adequate
- Employment contracts: AI checks for compliance with labor laws and company policies
- Service agreements: AI verifies scope, deliverables, and payment terms match expectations
- SaaS contracts: AI checks for data security, compliance, and acceptable use policies
- Purchase agreements: AI ensures pricing, delivery, and returns terms are favorable
Cost-Benefit Analysis
Traditional legal review of vendor contracts costs 2,000 to 5,000 dollars per contract. AI legal tools cost 50 to 200 dollars per contract. Quality is comparable or better for routine reviews. The cost savings are enormous.
Start Using AI Legal Review Today
Document your most critical contract standards. Sign up for LEGALFLY or Spellbook free trial. Upload a recent contract. Review the AI-generated analysis. Compare to your manual review if you had one. The time and cost savings will be obvious immediately.