We don’t recommend it. For those unfamiliar with Chat GPT, it’s essentially an artificial-intelligence (AI) chatbot that was created by a company called Open AI. It has garnered much attention as of late for its keen ability to generate content across a wide variety of channels, including memos, blog posts, and emails. You just ask the chatbot a question or enter in some search terms, and you have a completed document in seconds. But can you use Chat GPT to create a legal contract?

Technically, Chat GPT Can Create an Employment Contract

You can technically use Chat GPT to create a contract. For example, we asked it to “draft an employment contract” and it created an official nine paragraph employment agreement. The first few paragraphs are below:

EMPLOYMENT CONTRACT

This employment contract (“Contract”) is entered into between [Company Name], a [state/country of incorporation] corporation having its principal place of business at [Address] (hereinafter referred to as the “Employer”) and [Employee Name] (hereinafter referred to as the “Employee”).

1. Position and Duties The Employee is employed as a [Job Title] and will be responsible for performing the duties associated with this position as determined by the Employer.

2. Term of Employment The Employee’s employment shall commence on [Start Date] and shall continue until terminated by either party.

3. Compensation The Employee will receive a salary of [Salary Amount] per [pay period] for the duration of their employment. The Employee’s compensation will be subject to all applicable taxes and deductions as required by law.

4. Benefits The Employee will be eligible to participate in the Employer’s benefits plans, which may include health insurance, retirement savings plan, and other benefits as determined by the Employer.

Granted, you may have to tweak some of the content and fill in a few blanks, but the above is the beginning of a valid employment contract. But there are a few concerns.

But…

While Chat GPT can generate text, we don’t recommend that you solely rely on an AI language model to draft any type of legal contract. Contract drafting requires a thorough understanding of legal concepts and terminology, as well as careful consideration of the specific circumstances and requirements of the parties involved.

Further concerns with using Chat GPT to create a contract include:

1. Inaccurate information: The Chat GPT website specifically warns, “Chat GPT may produce inaccurate information about people, places, or facts.”
2. No clarificatory questions: Chat GPT can’t ask any questions to make sure it truly understands what kind of output you’re looking for. As a result, it may only partially understand your request.
3. You can’t ask “why”: We have many clients that review a contract and ask, “why did you draft this provision like you did?” Since you can’t ask an AI tool any follow-up questions, you may not understand your own agreement.
4. Simplified text: In our experience with using Chat GPT, the contracts and other documents that it generates are water-downed versions of what a person truly needs.

AI language models like Chat GPT may be useful in generating certain sections of a contract, such as standard terms and conditions or definitions, but it is crucial to have a human lawyer review and edit the document to ensure accuracy, completeness, and compliance with applicable laws and regulations. In short, while Chat GPT can be a useful tool to assist in drafting a contract, it should not be used as a substitute for the expertise and judgment of a qualified lawyer.

Questions?

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