Contracts rethought and redesigned : A new era with AI

Abstract

This article discusses the potential of generative artificial intelligence (AI) to revolutionize contract thinking and design. Experience and research tell us that most contracts focus on the wrong things—failure rather than success—and are presented in a way that is inaccessible to many people. Using the principles of proactive contracting and contract design, AI-powered writing assistants such as ChatGPT can help change the contracting paradigm by facilitating the transition from drafting to design and from reaction to proactive action. They can help transform the content, language, structure, and presentation of contracts, simplifying the tedious parts and increasing stakeholder empowerment and choice. This exploratory article presents examples of using AI tools to generate ideas and clauses for commercial contracts and to support contract redesign. This facilitates the creation of easy-to-read explanations, headings, and layered layouts that make contracts more effective, transparent, and sustainable, leading to better business and societal outcomes.