Can AI really review your commercial contracts? Interpretation, business context and the limits of automation.

AI can read a contract in seconds, summarise it and list possible problems. Sounds useful? It is. But that is not the same as reviewing the contract properly.

A good contract review is not just about finding unusual wording. It asks: What does this agreement actually mean? What could go wrong? And which risks really matter to the business?

Start with the words. A contract must be read as a whole because one clause can change another. AI may flag a sentence on its own and miss how the rest of the agreement affects it.

Then look at the deal. A liability cap limits what one party may have to pay. An indemnity is a promise to cover certain losses. A termination clause says when a party can walk away. Whether those terms are reasonable depends on the deal’s value, importance, insurance and bargaining position.

The law matters too. The same contract may involve privacy, confidential information, intellectual property, consumer protection and rules against unfair terms. AI can spot common issues, but it may not apply the current law correctly to your situation.

And an issues list is not the finish line. Someone still needs to choose what is worth negotiating, draft the changes and reach a workable compromise with the other party.

One more question: should the contract be uploaded at all? Contracts may contain confidential or personal information, and sometimes legally privileged advice. Businesses need to understand how the AI tool will use and protect that information.

AI can be a helpful first-pass tool. It can save time and help lawyers focus on the important questions. But it still needs safeguards, business context and human oversight.

At Bespoke, we use technology to support commercial experience and legal judgment – not replace them.