{"id":1994,"date":"2025-03-13T06:29:01","date_gmt":"2025-03-13T06:29:01","guid":{"rendered":"https:\/\/insight.thomsonreuters.com\/sea\/legal\/?p=1994"},"modified":"2025-03-20T03:36:52","modified_gmt":"2025-03-20T03:36:52","slug":"contract-drafting-challenges-risks-and-opportunities","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.com\/sea\/legal\/posts\/contract-drafting-challenges-risks-and-opportunities","title":{"rendered":"Contract drafting: challenges, risks and opportunities in 2025"},"content":{"rendered":"\n

Experience CoCounsel Drafting in Asia: Gen-AI powered drafting with Practical Law<\/a><\/p>\n\n\n\n

Is contract drafting an art or a science? Maybe a little of both. Contract drafting is an organized method of writing a legal document created by identifying facts and laws and applying them to draft a document that is relevant and accurate.<\/p>\n\n\n\n

All lawyers know that the legal document they are drafting must be comprehensive, but not encumbered with extraneous language, and always fit for purpose. Yet, despite spending as much as 56% of their time drafting documents, according to research by Thomson Reuters, they still spent in excess of 15 minutes identifying a good starting point for their draft. So, what keeps lawyers from working more efficiently and effectively when they draft legal documents?<\/p>\n\n\n\n

Let\u2019s review the real challenges and promising solutions.<\/p>\n\n\n\n

Drafting can be time-consuming and inefficient<\/h2>\n\n\n\n

No surprise here \u2013 time is a constraining factor for most legal professionals, as lawyers spend between 40 and 60% of their time drafting legal documents and reviewing contracts. Drafting has been a pain point and necessary evil of legal work that, until now, hasn\u2019t had the breakthroughs or technological leaps forward that have been needed, or that AI could deliver on.<\/p>\n\n\n\n

Think about it: Is there anything you spend 40-60% of your time<\/a> doing in your workday? What if you could delegate many of those tasks to an AI assistant<\/a> and get on to the next important, more strategic work versus slogging through cumbersome tasks?<\/p>\n\n\n\n

Accuracy concerns<\/h2>\n\n\n\n

There\u2019s no latitude when it comes to the accuracy of legal documents. A draft of a legal document needs to be comprehensive, but not encumbered with extraneous language, and customized to a specific task. At the same time, it should be consistent with other related documents. Even a minor error can have major effects. Slight inaccuracies can cast doubt on an entire document, meaning a contract could be considered void. Legal professionals need to ensure their documents are 100% accurate, up-to-date, and compliant.<\/p>\n\n\n\n

Consistency and formatting are also imperative. Some documents need to comply with specific formats<\/a> or content requirements to be valid. And both corporations and law firms often require consistency within their work product.<\/p>\n\n\n\n

Drafting is a multifaceted process<\/h2>\n\n\n\n

Drafting documents is cumbersome for a number of reasons, including the variety of inputs, variation in legal requirements, countless revisions, and competing priorities. Version control and collaboration are essential \u2013 and can be a headache. Legal documents aren\u2019t (and shouldn\u2019t be) drafted in a vacuum. That means there are multiple sets of eyes on a document and multiple versions to manage. Wrangling feedback from numerous sources, while maintaining a coordinated draft can be a double whammy of time and accuracy issues.<\/p>\n\n\n\n

Finding a starting point<\/h2>\n\n\n\n

Nothing is more frustrating than starting from scratch on a document when a similar one exists somewhere in an organization\u2019s vast knowledge base. Finding the most pertinent and most current document to use as a starting point is essential. Similarly, searching for the right legal precedent<\/a> as a reference goes beyond just saving time and gets directly to the heart of a matter.<\/p>\n\n\n\n

The drafting solution for legal professionals<\/h2>\n\n\n\n

Legal professionals won\u2019t be surprised to hear that artificial intelligence is a promising option for relieving many of these drafting problems<\/a>. AI has been called transformational in business, entertainment, education, politics, and personal applications. As it advances in the legal field, lawyers can use it to relieve some of their biggest challenges.<\/p>\n\n\n\n

In the legal industry, it can provide accuracy and time-saving benefits<\/a>.<\/p>\n\n\n\n

Watch On-Demand Webinar: <\/strong>Meet CoCounsel Drafting in Asia<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Delegating non-expert tasks<\/h2>\n\n\n\n

Lawyers know that the less time they spend on tasks that don\u2019t require their legal expertise, the more they can spend on strategic goals and delivering greater value to their clients and organizations. And it\u2019s not just lawyers who struggle with time constraints. Paralegals and legal assistants, who often support multiple lawyers, can relegate tasks like legal research, document review, and contract analysis<\/a> to AI. When legwork tasks are handled with technology (plus the thoughtful overview of professionals), everyone\u2019s workday becomes more predictable \u2013 and satisfying.<\/p>\n\n\n\n

Digging deeper without the rabbit holes<\/h2>\n\n\n\n

Sometimes, lawyers\u2019 expertise and intuition tell them to dig deeper when preparing legal documents. Whether they\u2019re searching for a document, a clause, or a precedent, finding the right information quickly can be difficult. By using AI applications with simple language search commands, legal professionals can uncover what\u2019s needed without the pull of random corners of the internet that can draw time and attention away. New AI tools can also bring disparate legal resources under one system<\/a> \u2013 keeping lawyers from jumping from one platform to another.<\/p>\n\n\n\n

Trusting the system<\/h2>\n\n\n\n

Artificial intelligence requires training. It needs to know where to search for information, and how to synthesize and interpret expertise from various sources. For legal applications, AI needs to be trained on expert, reputable, and pertinent legal data. More data isn\u2019t always better data. Legal professionals, including knowledge management executives, should look for solutions built on curated legal information. A tool that has been trained on the universe of public content may return results that aren\u2019t targeted or trustworthy.<\/p>\n\n\n\n

Getting on board with new technology<\/h2>\n\n\n\n

Regardless of whether drafting legal documents is the most- or least-favorite task in a lawyer\u2019s daily schedule, it makes up a substantial portion of it. Just as the internet changed legal workflow in the late 20th century, the advancement of AI in the legal industry streamlines tasks<\/a> and can improve outcomes. For legal professionals in law firms, corporate legal departments, or government agencies, how you choose to leverage AI can be a competitive advantage<\/a>. However, as GenAI is poised to transform how legal work gets done, having a strategy will soon be table stakes.<\/p>\n\n\n\n

Download Whitepaper: AI-powered legal drafting: The definitive guide for legal professionals<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

This article was originally published on the Legal Blog by Thomson Reuters. To view the original article, please visit here.<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Experience CoCounsel Drafting in Asia: Gen-AI powered drafting with Practical Law Is contract drafting an art or a science? Maybe a little of both. Contract drafting is an organized method…<\/p>\n","protected":false},"author":80,"featured_media":1998,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[998,971,10],"tags":[972,44,1045,278,1046,841],"insight_job_role":[],"insight_practice_area":[],"class_list":["entry","author-legal-insight-au","post-1994","post","type-post","status-publish","format-standard","has-post-thumbnail","category-generative-ai-2","category-generative-ai","category-legal","tag-ai","tag-artificial-intelligence","tag-contract-drafting","tag-innovation","tag-legal-topics","tag-technology","hentry"],"acf":[],"yoast_head":"\nContract drafting: challenges, risks and opportunities in 2025 - TR - Legal South East Asia Contract drafting: challenges, risks and opportunities in 2025<\/title>\n<meta name=\"description\" content=\"Discover key challenges and opportunities in legal contract drafting. 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