As a lawyer in legal tech who thinks about contracts for a living, and as one who has made his fair share of drafting mistakes, I’ve watched in awe as the legal industry moves ahead with plans to use generative AI such as ChatGPT to improve the contract drafting process. I’m also a bit skeptical.

Contracts generated using large language models will only be as good as the underlying data sets allow. Contract templates typically recycle confusing language from prior transactions, which frequently leads to disputes about the intended meaning. The endless cycle also impedes the understanding of lawyers in training, and consumers and small businesses, who frequently lack bargaining power and feel like they have no choice but to sign contracts that they cannot comprehend.