Contract checks using AI to improve utilization efficiency and accuracy: A practical guide using ChatGPT

Contract confirmation requires a great deal of time and effort due to its precision. However, the evolution of AI technologies such as ChatGPT has made this work more efficient and effective. This article explains how to check contracts using ChatGPT, how to use them, risk management, and the importance of collaborating with experts. We will introduce new developments in the contract checking process, including specific examples and practical advice on how AI can contribute to risk reduction in business.

table of contents

• Contract check using ChatGPT: prior knowledge
• Legal Basis and Legal Concerns about AI Use and Workarounds
• Contract check procedure using ChatGPT
• Practical examples: Specific ways to use them
• Ready to check contract prompts
• Utilizing the ChatGPT plugin "Browse with Bing"
• Success Case: Effects of ChatGPT on Legal Checks
• summary

Contract check using ChatGPT: prior knowledge

Before using ChatGPT, it is essential to acquire basic knowledge about legal documents.

• Basic principles of the Contract Act : contract establishment requirements (application, acceptance, consideration), relief measures for breach of contract, conditions for validity of contracts, etc.
• Understanding legal terms : Understand the exact meaning of technical terms that frequently appear in contracts, such as "disclaimer," "right to termination," "warranty," and "promise."
• Contract Structure : Understand standard structures such as preambles, definition clauses, body, termination clauses, signature columns, and their functions.
• Limitations of ChatGPT : Understand and utilize AI's capabilities and limitations appropriately. While ChatGPT is useful for basic analysis, summarization and interpretation of clauses, it has limited responses to complex legal issues and latest legal changes.

These knowledge provide the foundation for effective use of ChatGPT. The results of AI analysis are for reference only, and the final legal decision should be left to the experts.

Legal Basis and Legal Concerns about AI Use and Workarounds

The Ministry of Justice has published guidelines for contract review services using AI, and makes transaction contracts that are not disputed and other matters "legal." However, caution is required as it is a violation of the Lawyer Act, as it is a matter of violating the Lawyer Act for those who do not have a legal qualification to advise and receive compensation on disputes. Legaltech companies are implementing services based on the guidelines of the Ministry of Justice.

Regarding the relationship between provision of contract-related business support services using AI, etc. and Article 72 of the Lawyer Act (Reference: Ministry of Justice)

Legal concerns regarding AI use include data privacy, confidentiality, accuracy of AI analytics, and legal liability. To address these concerns, data protection, auxiliary use of AI analysis, understanding technical limitations, and maintaining current legal knowledge are important.

Contract check procedure using ChatGPT

1. Digitalization of contracts : Contracts are prepared in digital format and anonymize personal information and other information as necessary.
2. Access to ChatGPT : Access OpenAI's ChatGPT and agree to the Terms of Use.
3. Enter the prompt : Enter the prompt according to the content you want to check. (Example: "Identify the potential risks contained in this agreement and suggest mitigation measures.")
4. Answer verification : Carefully examine ChatGPT answers and seek expert feedback if necessary.
5. Feedback : We will modify and improve the contract based on ChatGPT analysis results.
6. Final Expert Review : As a final confirmation, we will ask for a review by a legal expert.

Practical Guide: Start checking contracts with ChatGPT

Practical examples: Specific ways to use them

(Insert images of the results and identification of potential risks and mitigation proposals using the example land and building sales contract)

Ready to check contract prompts

(Table format includes example prompts for each category, such as identifying adverse clauses, summarizing contracts, interpreting specific clauses, assessing contract fairness, analyzing termination clauses, identifying potential risks, checking applicable law and dispute resolution clauses.)

Utilizing the ChatGPT plugin "Browse with Bing"

By using the "Browse with Bing" feature, ChatGPT can refer to information on the Internet and help you verify the market practices and legal conformance of contract terms.

Success Case: Effects of ChatGPT on Legal Checks

(Suma Sapo Co., Ltd. briefly describes the case studies of Seino Logics and inserts images)

summary

ChatGPT makes contract checks more efficient and contributes to reducing legal risk. By leveraging AI, you can accelerate your business growth. However, AI is merely an auxiliary tool and requires a final check by an expert. Work with AI and experts to ensure safer and more efficient contract checks.

The above is the detailed content of Use ChatGPT to check contracts! A thorough explanation of prompt examples and points to be careful about. For more information, please follow other related articles on the PHP Chinese website!