Practical guides for lawyers

Contract analysis with AI: from clauses and risks to verified edits

A useful contract review answers a specific question for your party. Prism4.ai can help compare clauses, identify inconsistencies, prepare a risk table, and suggest edits. The result depends on complete documents, a clear brief, and checking quotations against the original text.

The Prism4.ai team · Updated

Prepare the contract and related materials

Upload the current contract version to Files or the relevant Project. Include referenced appendices, specifications, and amendments. Use documents you are authorized to work with. If only part of the package is available, say so in the task so that missing terms are not treated as agreed.

For a scanned contract, open the original and check text recognition quality. Pay particular attention to party names, clause numbers, deadlines, percentages, and amounts. Unclear or unreadable text should remain an open question rather than become a confident conclusion.

Define your party's position and the review goal

Identify the party you represent: the customer, supplier, landlord, or another party. Give the subject of the agreement, commercial priorities, acceptable limits, and governing law where specified. The same clause can have different consequences for different parties.

Set the task's scope: an initial risk review, comparison of two versions, or drafting edits to specific clauses. Separate analysis of the supplied text from research into current law or case law; request current sources for the latter.

Review the main groups of terms

Request a structured table that connects each conclusion to an exact passage in the agreement.

  1. Subject and deliverables: what must be supplied, how quality is defined, and what documents establish performance.
  2. Payment: price, timing, acceptance conditions, price adjustments, and related appendices.
  3. Timing and liability: performance conditions, penalties, liability limits, and inconsistencies between clauses.
  4. Termination and disputes: notice requirements, termination consequences, and the agreed dispute process.
  5. Special terms: confidentiality, personal data, intellectual property, and other matters relevant to this particular deal.

Verify quotations and proposed edits

For each risk, require a clause number, a short exact quotation, an explanation for your party, and a proposed revision. If a conclusion depends on an unavailable appendix or a negotiation agreement, flag it separately. Do not substitute an assumption for an unknown fact in the final conclusion.

Compare each proposed revision with the original. Editing one clause may require aligning definitions, references, and related terms elsewhere in the agreement. When the analysis cites a legal provision or decision, open the original source and verify its applicability to this deal.

Keep the result useful for negotiations

Save the risk table, agreed edits, and open questions in the Project. For version comparisons, explicitly identify the original and new drafts and request changes in contractual meaning as well as wording. This makes resolved and outstanding risks easier to track.

Prepare the document for further editing or export to Word or PDF. Before sending it to the other party, check the final file, numbering, appendices, and agreed changes. The final result should reflect your team's decisions, including its review of the agent's initial answer.

Example task for the agent

Review this agreement from the customer's perspective. Prepare a table with the clause, exact quotation, risk to us, proposed wording, and verification questions. Use only the supplied document package; flag missing appendices and unknown facts separately.

Expected result

A risk table, verified clause revisions, and open questions for negotiations and legal review.

Running tasks requires an account and access under an appropriate plan. Connected services operate within their granted permissions.

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