What is Contract AI, and What are the Best AI Contract Tools

Contracts are known as lengthy documents with different clauses of legal language that outline terms, responsibilities, etc. Contracts are both difficult to draft and time-consuming to review. However, AI advancements have also influenced this process with what's called "contract AI".

Contract AI is an AI-powered way to deal with contracts, eradicating the need for human lawyers. Therefore, this guide is going to talk in detail about contract AI and a few of the best AI contract tools. So, let's get started!

Part 1. What Is Contract AI?

Contract AI is a process of drafting, reviewing, and managing contracts using text-based machine learning. Think of it as a human lawyer, which helps to draft a contract based on your specified instructions and includes all the essential clauses in the contract about the terms, responsibilities, rights, etc.

When it comes to reviewing contracts, AI contract tools are trained by algorithms that identify behaviors and flag patterns in contracts. This helps quickly pinpoint key concepts, terms, and phrases crucial to know about contracts.

In short, contract AI is a modernized way to prepare or review contracts, as it eradicates many repetitive contract admin tasks and makes it easy to consume lengthy contracts before signing. So, are you eager to enhance your contract drafting and reviewing processes? Elevate your workflow with UPDF AI – your solution for seamless and intelligent contract handling with AI.

Part 2. Different Types of AI Contract Tools

Contract AI has become an extensive category of AI-powered tools that are meant to assist in different aspects of contracting. Below are the three common types of AI contract tools:

1. AI Tools for Contract Drafting

The first type of contract AI tool is the contract drafting tool. As the name implies, these AI tools assist in creating contracts. All you have to do is provide instructions about the contract, and they will generate the contract draft in seconds. Based on the draft, you can further customize the contract or ask to add more clauses.

2. AI Tools for Contract Reviewing

The next type of contract AI tool is the contract reviewing tool. These tools assist in reviewing contracts to pinpoint important terms, concerning points, and other essential details. This way, individuals and teams can quickly review lengthy contracts before signing.

3. AI Tools for Contract Management

The last type of contract AI tool is the complete contract management tool that assists during the whole contract lifecycle. These tools incorporate both the above types, i.e., drafting and reviewing, and also assist in managing contracts. They allow collaboration on contracts, set automated approval workflows, assist in secure contract signing, set automated contract remainders, and more.

If you want to elevate contract handling with AI, check out our template library for free contract template downloads. Once you pick the template, you can then download UPDF and use it's AI and editing tools to customize the contract effectively.

Part 3. The Best AI Tools for Contract Drafting & Reviewing

Now that we know the different types of AI contract tools, let's shed light on two of the best AI tools for contract drafting and reviewing:

1. UPDF

The first and most powerful AI tool for contract drafting and reviewing is UPDF. Reputed as a PDF creator/editor tool, UPDF comes integrated with the most intelligent AI feature called UPDF AI. UPDF AI is a GPT-4 powered AI assistant for contract drafting and reviewing.

With UPDF AI, you can use its chat box to instruct what you want in the contract, such as creating an employment contract, creating a payment contract, etc.

Once it provides the draft, you can copy-paste the draft into the blank PDF and use the chat box again to refine the draft, such as adding a termination clause, etc. This way, UPDF AI provides a one-stop tool to draft contracts easily. The best thing is that it also incorporates editing and annotation features, which help to customize the contract and make it a professional-looking document.

UPDF AI also provides top-notch assistance during contract reviewing. Its AI chat box helps to extract key points from the contract or answer all other questions you have about the contract.

This way, you can quickly and effectively review contracts and then use its built-in signature support to electronically sign contracts.

See how UPDF revolutionizes the PDF and document management workflow with AI:

2. Legly

Legly is an online AI contract reviewer tool that provides a graphical way to review contract details. It intelligently extracts metadata, highlights deal-breakers, and pinpoints missing clauses based on your preferences.

It provides a visual way to filter the contract details, such as payment terms, notice period, terms of agreement, etc. This makes it an instant way to review contracts and extract relevant insights easily. It is best suited for businesses, enterprises, legal firms, and service providers.

However, Legly's capabilities are only limited to contract reviewing, not drafting. Secondly, it is more costly. It costs €39/month per user for 2 reviews per 30 days. In contrast, UPDF AI is available for just $8/month per user for 100 files/month.

Part 4. Top 2 AI Tools for Contract Management

AI tools for contract management are an all-in-one solution to assist users in the whole contract lifecycle. Below are the top 2 AI tools for contract management:

1. Evisort

Evisort is an AI-powered contract management software that streamlines the whole contract lifecycle management process. It provides a central place to create, collaborate, handle, analyze, and report on contracts with its AI management and analysis capabilities.

Evisort's AI is trained on 11+ million contracts, which makes it capable of assisting in almost all types of contracts. Besides that, it also helps to track the status of the contracts. However, it is a costly contract AI tool and requires a learning curve to master the tool.

2. Juro

Juro is another AI-powered contract management software that provides a web-based collaborative platform to create, review, agree, and manage contracts. It provides templates to draft contracts easily and then lets you use its AI assistant to refine them.

Juro allows organizations to create approval workflows to streamline the process of approving contracts. Besides that, it can be integrated with plenty of other tools as well. In short, it is an all-in-one contract collaboration platform.

Conclusion

Contract AI is playing a game-changing role in handling contracts. It automates the contract drafting, reviewing, and management process to save significant time and effort in repetitive activities.

Therefore, this guide will wrap up by recommending you use AI tools for contract drafting and reviewing to streamline the process. One of the best and most intuitive tools to do so is UPDF. Its intelligent AI capabilities and one-stop place to draft, review, sign, and share contracts make it the complete contract AI tool worth installing.