Posted Friday 1st August 2025
Although it may seem alluring to use an AI model to draft legal documents, especially given their speed and ease of use, there are significant dangers to this approach of which any founder or business owner alike should be aware. In this article, we will go into further detail looking at the overall issues with using generative AI in this capacity, before examining specific technical risks with its use.
Confidentiality risks
While AI is increasingly knowledgeable, it lacks experience. Using AI in this manner, you open your business up to confidentiality issues. While the law is not yet set on liability for this, the impact upon the client relationship if information were to be leaked in that way would be significant.
Technical Concerns
When taking advice from a regulated law firm, you can hold them accountable if the advice given is improper. When using AI however, the website states a disclaimer that any response is not to be considered advice, limiting accountability. Furthermore, solicitors working within a law firm are individually registered with the SRA, meaning that you can research them and their accreditation. As a result, when you take advice from a regulated law firm, you can trust and rely upon the advice given, as opposed to when advice is given from AI, where you lack this certainty.
For example,AI models are subject to engaging in anti-trust behaviours, especially in dynamic pricing programs, sometimes without the user’s intent. This can lead to liabilities for your company, even when there was no intent to collude. This is especially prevalent when the models have a hand in drafting contracts or dynamic pricing software.
Data security and learning risks
Another concern is that AI teaches itself from its chats. While this might seem beneficial, the detriment to your business as a result can be catastrophic. While you may be inputting sensitive data to try and receive a more tailored output, this information will have been used to train the AI models and, as a result, could be disseminated by the AI. The OmniGPT breach this year demonstrated these dangers, with 34 million conversations exposed. If you were to use these services for confidential drafting, your information would be at the same risk of leaking.
The human advantage
The advantage of using a legal team is to be able to use their soft skills, negotiation, persuasion, problem solving, on your behalf. This might be the team negotiating with other parties for your business, liaising with accounting teams to ensure all documents are present, or explaining the transaction to your management; none of which can be done while using an AI language model. By using a legal team, you can integrate legal drafting with the business side of your workflow, resulting in a more coherent, effective method of work which is otherwise not possible using AI.
Conclusion
While AI is great for handling more menial tasks of your business, legal drafting should not be one of them. This is not only due to the risks inherent in using AI models for this sensitive an area, but also on account of not being able to tailor these documents with sufficient experience and expertise, meaning you may miss out on growth later. By working with our team however, you can be sure to extract the most value from your documents.
Please comtact Rajiv Samani for more information or for a free introductory call.
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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