Although it may change as AI tools evolve, it’s currently dangerous to use ChatGPT and other tools to try to create your own legal agreements without the assistance of an experienced transactional lawyer.
Here are three reasons why…
1. You don’t know who owns the source material being used by artificial intelligence to create the legal documents. There’s an excellent chance the source is copyrighted and what you’re getting is a derivative work that infringes on that copyright. In the United States, willful infringement can cost you up to $150,000 per violation plus attorneys’ fees, court costs, and your irreplaceable time dealing with the issue.
2. AI tools are not sophisticated enough to know your unique situation so that specific contract provisions can be included to maximize your protection.
3. Related to #2, there’s a good chance the document created by AI will include provisions that are hostile to your legal rights. For example, if you’re a professional services provider (e.g., a copywriter), you may discover the contract created by artificial intelligence is filled with terms that favor the client instead of protecting you. Or if you’re selling software, the license generated by the AI will likely contain terms that exceed the scope of what you want (or even have the legal right) to give to your customers as licensees.
So, what is a good current use of AI tools for creating legal documents? Creating a list of ideas/issues you’ll want to discuss with the business lawyer who prepares the documents for you.
Now if you need help with your contracts, it’s time to schedule a phone consultation with Business Attorney Mike Young.
