Introduction

Reviewing contracts can be a real pain for owner-managers of small to medium-sized businesses, especially if you don’t have a legal team on standby or a hefty legal budget. You’re already juggling countless responsibilities—from managing finances to overseeing operations—and now you have to wade through pages of legal jargon just to get a customer or supplier on board.

It’s time-consuming, expensive, and downright daunting if you don’t have a legal background.

But what if there was a way to make this process a whole lot easier, without immediately running to a lawyer and watching the billable hours pile up? Enter AI contract review. These smart tools handle the heavy lifting, making contract review quicker, cheaper, and far less stressful. Think of it as the perfect middle-ground between doing everything yourself and sending it straight to an attorney. AI contract review could be exactly what your business needs.

Faster contract review

We’ve all been there: a contract lands in your inbox, and you know you’ll need to set aside hours to comb through it while balancing your other responsibilities. You sit down, get out your pen, and start reading every clause like it’s your weekend job.

AI contract review tools can change that narrative completely. Instead of spending hours (or even days) on a single contract, AI can scan the entire document in minutes, highlighting potential risks. What might take you 2 hours to review manually can be done in about a minute with tools like Cobrief.

Speed is crucial in many business situations. Faster contract review means you can onboard customers quicker, unlock cash flow sooner, and get back to negotiating important terms in no time. This efficiency can be the difference between closing a deal and losing it due to unnecessary delays.

Consistency

Let’s face it: humans make mistakes. When you’re manually reviewing contracts—especially without a legal background—key details can easily slip through the cracks. Fatigue, distractions, or just plain misunderstanding can lead to costly errors.

AI tools, however, don’t get tired or distracted. They provide a consistent, thorough review every time. This consistency ensures that nothing important is missed, reducing the risk of errors that could come back to haunt you later. With AI, you can be confident that every contract is reviewed with the same high standard, helping you avoid unexpected liabilities and ensuring that your agreements are rock solid.

Managing risk

Contracts are all about managing risks, and missing a crucial detail can be disastrous for your business.

One of the big advantages of using AI for contract review is its ability to sift through complex legal language and dense clauses to flag areas of concern—like ambiguous terms, unusual clauses, or missing provisions. This gives you a clear picture of potential issues that could cause trouble down the line, allowing you to address them before you sign on the dotted line.

For instance, AI can point out clauses that might expose you to significant financial liability or that don’t comply with industry standards. This gives you the opportunity to renegotiate terms or seek further legal advice.

But AI doesn’t just help with current risks; it also helps you prepare for the future. By analyzing patterns in your contracts, AI can identify areas where you might face recurring issues. This proactive approach allows you to fine-tune your standard contract terms and negotiation strategies to avoid these pitfalls going forward.

Cost savings

We all know how quickly legal fees can add up, especially when you’re paying by the hour. Top lawyers charge eye-watering rates—up to $2,400 per hour at some firms.

AI contract review tools offer a more budget-friendly alternative. Instead of paying steep hourly rates, you can let an AI tool handle most of the heavy lifting. The cost of using AI is often just a fraction of what you’d pay a lawyer, potentially saving your business thousands of dollars a year.

Even when you do need to involve a lawyer, an AI contract review tool can make you more confident and prepared. By identifying the key areas that need attention, you can give your attorney precise instructions, avoiding unnecessary back-and-forth and keeping your legal bills under control.

Another major plus of AI contract review tools is their predictable pricing. Unlike legal fees that can skyrocket depending on the complexity of the contract, AI tools often come with set pricing plans. This predictability makes budget planning much easier and helps you avoid unexpected legal expenses. And as any small to medium-sized business owner knows, cash flow is king.

By opting for AI contract review, you gain a clear, cost-effective solution that helps keep your business’s legal affairs in order without breaking the bank.

Control and empowerment

Most AI contract review tools are designed with lawyers in mind. But the right tool aimed at non-lawyers can make the contract review process much more accessible for business owners without an internal legal team or a big budget.

A good AI tool will highlight risks in your contracts and explain them in plain English, along with what they mean for your business. This clarity empowers you to understand what you’re agreeing to without having to rely solely on external legal help. It not only boosts your confidence as an owner-manager but also reduces the chances of misunderstandings or potential legal hiccups.

Imagine being able to quickly review a contract and instantly grasp its implications for your business, even without a legal background—that’s the power of a well-designed AI tool. It makes you more informed and confident, helping you make smarter, safer business decisions.

Adapting to business growth

Adopting AI contract review tools now is a smart move that can set your business up for future success. These tools are designed to integrate with other AI and automation technologies, making your workflow more efficient as your business grows. As new tools and advancements come along, your AI system can evolve and grow with them, keeping your business ahead of the curve.

For example, you can integrate your AI contract review tool with your existing CRM or project management software, streamlining your operations even further. This not only improves your current processes but also ensures your business is ready to adapt to future technological changes.

How Cobrief can help with contract review

Reading your business contracts can feel overwhelming as an owner-manager of a small to medium-sized business. That’s where Cobrief comes in. Cobrief helps business owners and operators review their business-to-business contracts for legal risks.

Upload your contract to Cobrief's AI contract review software, click review and you’ll get a list of all the risks, in plain English. This helps you decide whether to sign, negotiate or reject the terms of your contract, or hire a lawyer. Think of it as a heat map for your contracts.

Get started here.

Conclusion

AI contract review tools are changing the game for small to medium-sized businesses. By drastically reducing review times and providing thorough, consistent analysis, these tools save time, money, and stress.

Ready to see how AI can streamline your contract review process? Check out Cobrief and discover how you can protect your business and simplify your contract management.