What is an AI contract generator and would your business benefit from using one? Find out in this guide.
What is an AI contract generator?
An AI contract generator is a tool that automates the contract creation process through the use of artificial intelligence (AI) technology. It enables businesses to generate contracts in seconds simply by prompting the AI.
How does an AI contract generator work?
AI contract generators use large language models (LLMs) to predict what a contract should look like and include. In other words, their algorithms are trained using a large number of contracts. This exposure and training enable the AI to recognize common patterns, language, and even variables within contracts.
This advanced understanding of contract structures and terminology makes it possible for AI contract generators to predict what a contract should include and how it should be drafted. The AI then leverages this understanding, and the information provided in a prompt, to generate contract drafts.
This can sound quite intimidating at first. However, most AI contract generators are easy to use and don’t require any technical knowledge at all.
For example, Juro users simply submit a prompt in the platform asking for a contract or specific clause to be drafted. The contract AI then drafts the contract based on the information in your prompt and any additional guardrails and conditions you’ve set up.

How can AI improve the contract generation process?
1. Speeds up the contract drafting process
The biggest and most obvious benefit of using AI contract generation is that it speeds up the contract drafting process significantly. Manual contract drafting can be a lengthy and arduous process, especially if your business doesn’t have robust contract templates in place.
An AI contract generator can streamline and automate this process, eliminating the need for lawyers to draft simple, routine contracts from scratch.
2. Ensures consistency when drafting routine contracts
Since AI contract generators have been trained to recognize and replicate patterns within contracts, they’re often effective in delivering consistent contract drafts. This is particularly useful when it comes to automating standardized contracts with default terms and relatively low contractual risk.
Some AI contract management systems, like Juro, will even allow you to set specific conditions and guardrails when generating contracts. This enables you to implement your contract playbook and maintain control over the output.
3. Empowers commercial teams to self-serve on contract creation
Contract-related tasks have traditionally been reserved for in-house legal teams. Yet, research shows that 69 per cent of in-house lawyers feel buried in low-value work. This means that the turnaround time for commercial contracts can be slower than many businesses would like.
AI contract generators empower commercial teams to self-serve on these contracts with confidence, rather than relying on their already stretched legal teams for contract drafting. This has lots of benefits, from fewer blockers to faster contract workflows.

Are AI-generated contracts reliable?
Lawyers are understandably wary about using AI to generate contracts. They’re often business-critical and sensitive documents - and AI can make mistakes.
But that doesn’t mean you can’t rely on AI tools to generate contracts, or that it isn’t beneficial to do so. It simply means that you should continue to review contracts created by AI, just like you would if they were drafted by someone outside of the legal department.
With the right level of oversight and the right prompts, AI-generated contracts can actually be extremely reliable. They can also provide a repeatable process for contract creation, making the entire contract drafting process more reliable.
Like all legal AI tools, AI contract generators will only be effective if you implement and use them properly. That’s why we’ve created a comprehensive guide on how our customers can get the most from our AI-based functionality.
Looking to generate contracts with AI?
If you’re looking for a way to create, agree and execute contracts up to ten times faster, a platform like Juro could be perfect for your business. Juro is the only platform that combines AI with a browser-native collaboration platform that covers the entire contract lifecycle. With Juro, businesses like yours can:
- Self-serve confidently on routine contracts, with flexible templates and workflows
- Agree contracts ten times faster with Juro's powerful AI functionality
- Sign contracts securely within the platform using Juro's native eSignatures
- Collaborate on contracts in real time, without leaving their browser
- Manage contracts end-to-end, all in one unified workspace
If this sounds like something your business would benefit from, fill in the form below to book your personalized demo.