Trust  ›  AI limitations

What the AI does.
What it can't.

Honest about both sides. The AI generates a competent first draft. It doesn't give legal advice, predict court outcomes, or replace an attorney's judgment on a high-stakes deal.

Draft your agreement

Honest about what AI can and can't do.

Drafting engine, not legal oracle.

Understanding what you're getting prevents disappointment — and helps you use it well.

What it does well

Generates a tailored first draft with standard protective clauses. Adjusts for governing state. Structures payment terms, IP provisions, and termination language based on your description. Explains each clause in plain language.

What it can't do

Make strategic legal judgments. Advise on whether to sign. Predict how a court will interpret a clause. Know your specific business context beyond what you described. Replace an attorney's knowledge of your state's case law.

Why it's still useful

For most service agreements, the AI-generated draft covers what's needed: payment terms, IP assignment, liability cap, termination, confidentiality. It's a better starting point than a blank page, a generic template, or a document you copy from the internet.

A competent first draft. Not a legal opinion.

BizDraft's AI is doing what a competent paralegal might do with a good brief: reading the facts you provided, assembling a draft from relevant clause structures, and flagging what needs review. That's genuinely useful — and genuinely different from what a licensed attorney does.

What an attorney adds that the AI doesn't: judgment about risk allocation specific to your negotiating position, knowledge of recent case law in your jurisdiction that affects clause interpretation, advice on whether to sign at all, and the ability to negotiate on your behalf.

Where the AI may fall short

  • Highly regulated industries. Healthcare, finance, real estate, and employment law have specific regulatory requirements. The AI handles general contract law better than industry-specific compliance.
  • Novel or complex deal structures. Multi-party transactions, joint ventures, revenue-sharing arrangements with complex triggers — the more unusual the structure, the more the AI may produce generic language where specific language is needed.
  • Jurisdiction-specific nuances. The AI adjusts for state law, but state case law interpreting statutes is vast and evolving. A lawyer who practices in your state knows things the AI's training data may not fully capture.
  • Negotiation context. Whether a clause is "acceptable" depends on your leverage, the relationship, and the alternatives. The AI doesn't know those things. You do.

The right way to use it

  • Treat the output as a solid first draft, not a final document. Read every clause.
  • Edit what doesn't fit your situation. The Word file is yours to modify.
  • For high-stakes, high-value deals: download and send to an attorney. They'll review a draft faster than drafting from scratch.
  • For standard service agreements at moderate value: the draft covers what's typically needed. Review, adjust, sign.

AI limitations, by the most-asked questions.

Is an AI-drafted agreement enforceable?

A signed agreement is enforceable under the same rules as any other — competent parties, clear terms, lawful purpose, consideration. The drafting method doesn't affect enforceability. What the AI drafts and what you sign are your responsibility to verify.

Can the AI make errors?

Yes. AI models can make errors — produce clause language that doesn't match what you intended, miss nuances in your description, or apply a general rule where a specific one applies. Read every clause before signing. Don't sign anything you don't understand.

Does BizDraft claim lawyer-quality output?

No. We don't claim "lawyer-quality," "guaranteed enforceable," or "100% accurate." The output is a tailored first draft. It replaces a blank page, not an attorney.

When should I use a lawyer instead?

For high-value deals, regulated industries, active negotiation with a sophisticated counterparty, or any situation where the consequences of a mistake are large. See the full guidance on the when to call a lawyer page.

A competent first draft.
Read it, edit it, sign it when you're ready.

Free. No registration. No card. No catch.

Draft your agreement

⚠ Legal disclaimer: Agreements generated by BizDraft are AI-produced for informational purposes only. They do not constitute legal advice and do not create an attorney-client relationship. For any agreement of significant legal or financial importance, consult a qualified attorney before signing.