Artificial intelligence is reshaping contract review. From non-disclosure agreements (NDAs) to master services agreements (MSAs) to procurement contracts, executives now have access to tools that promise faster, cheaper, and more consistent analysis. Used correctly, AI can streamline routine work and reduce legal spend. Used carelessly, it can expose businesses to confidentiality breaches, biased results, and unenforceable provisions. This article explains where AI adds value, where risks remain, and how leaders can deploy AI responsibly to protect both efficiency and enterprise value.

Contracting teams face relentless pressure to accelerate deal cycles, control costs, and reduce bottlenecks. Artificial intelligence offers speed by identifying standard clauses, highlighting deviations from playbooks, and flagging potential risks in minutes rather than hours. In high-volume, lower-risk agreements such as NDAs, AI is especially effective. For procurement and vendor management teams, AI can scan hundreds of supplier contracts to ensure consistency with corporate policy. In short, AI is attractive because it promises scalability without proportional increases in headcount or legal fees.

• NDAs: Detects missing carve-outs for disclosures required by law, flags unilateral restrictions versus mutual obligations.
• MSAs: Reviews indemnification provisions, liability caps, and termination rights against company standards.
• Procurement agreements: Highlights pricing adjustment clauses, service-level requirements, and data use restrictions.
• Playbook consistency: Compares contract terms against an internal library of approved language to maintain uniformity across agreements.

AI is not a silver bullet. Without proper controls, its use can create more risk than it resolves. Key concerns include:

General Counsel and business leaders should approach AI adoption as an enterprise governance issue, not just a technology rollout. A strong framework includes:

• Limiting AI use to first-pass review, not final approval
• Ensuring all tools are enterprise-grade with strict data security, never consumer apps
• Embedding confidentiality safeguards into vendor agreements with AI providers
• Training business users to interpret AI outputs critically, not automatically
• Pairing AI analysis with legal oversight to confirm enforceability and alignment with risk appetite

• Define contract categories suitable for AI review (e.g., NDAs, procurement templates)
• Vet AI providers for confidentiality, data storage, and compliance safeguards
• Update internal playbooks so AI has a reliable benchmark for comparison
• Set escalation protocols—when AI flags high-risk issues, attorneys must review
• Audit AI-reviewed contracts periodically to ensure quality and consistency

Different industries are experimenting with AI in contracting at different speeds:

• Technology and SaaS: Rapid execution of NDAs and partner onboarding documents.
• Manufacturing and supply chains: Managing thousands of supplier contracts for consistency in pricing and terms.
• Healthcare: Reviewing compliance-heavy contracts, where human oversight is still essential due to regulatory sensitivity.
• Financial services: Monitoring vendor agreements for risk and regulatory reporting obligations.

Artificial intelligence will not replace attorneys, but it is changing how businesses allocate them. Companies that win will use AI to accelerate repetitive work, while reserving human counsel for judgment calls, negotiation, and strategy. By aligning AI with governance and risk frameworks, executives can capture efficiencies without sacrificing control. In the next three to five years, expect to see AI embedded in contract lifecycle management systems, with legal teams functioning as strategic reviewers rather than first-level drafters.

AI in contracting is here to stay. The question for executives is not whether to use it, but how to use it responsibly. Done right, AI accelerates deal cycles, reduces cost, and improves compliance. Done wrong, it introduces confidentiality breaches, bias, and unenforceable provisions that can undermine trust and create liability. Treat AI as an accelerator, not a substitute, and ensure human judgment remains central. Relevant Law helps companies design frameworks that balance innovation with protection—so efficiency gains never come at the cost of legal exposure.