New artificial intelligence technologies can detect risks and unfair clauses in contracts.

Ai 11.01.25

Researchers at New York University have developed an artificial intelligence system that can help identify unfair and legally contentious clauses in contracts. The system can identify ambiguous or illegal wording commonly found in employment and lease agreements.

ContractNerd relies on a large language model (LLM) to analyze contracts and categorizes contract clauses into four types based on drafting quality and risk level.

The AI system has been tested on lease and employment contracts in New York and Chicago, using databases from law firms such as Thomson Reuters Westlaw, Justia, and Agile Legal, as well as local laws and regulations. During testing, ContractNerd was compared to other AI contract analysis systems, including the goHeather platform.

In the first test, ContractNerd demonstrated higher accuracy in identifying suspicious points; in the second test, it scored higher in the completeness and legal correctness of its analysis.

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New artificial intelligence technologies can detect risks and unfair clauses in contracts.

Researchers at New York University have developed an artificial intelligence system that can help identify unfair and legally contentious clauses in contracts

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