The quick answer? No, you should not be writing contracts with ChatGPT. And before you get too cynical - we know, we know. A contract template shop writing a blog post to warn you against writing your contracts with ChatGPT or some other AI Tool? Seems a bittoo on the nose.
But hear us out, because there are true limitations and risks that you should be aware of before going this route. In fact, we have 3 reasons why writing your own contracts with ChatGPT is not the best idea. Not to mention that if you ask ChatGPT if it can write contracts for you? Even it will tell you that’s not a great idea. Go ahead, give it a try.
In theory, if you were able to go clause by clause and prompt the AI tool to write each individual clause, you could pull together a decent contract. But that would require you:
ChatGPT as a contract creator would only be as good as your prompts are. And if we can be real with you for a second - unless you’re a lawyer, what are the chances that you’d know all the right prompts to pull together a legally sound final product?
(We highly encourage you NOT to try and DIY your contracts, but wherever you get your contracts, you’ll want to make sure these 7 essentials are included.)
Using a chatbot to write your contracts won’t save you much time, because you’ll have to do heavy research to understand what you actually need, and what your contracts should look like. And that’s most likely a headache you aren’t looking to take on.
A second issue that comes up with using an AI tool for creating contracts has to do with the language used. When it comes to a legally binding contract, theway things are said are of utmost importance.
Maybe you’ve had an experience similar to one of our customers. As a calligrapher, they specialized in creating beautiful print materials within the wedding industry. In one instance, they had a client that hired them to craft the menus for their wedding. After the project was underway, the client requested that the calligrapher also created a “quick” seating chart.
The calligrapher went back to the client and let them know that was outside of the scope of the project, but it turns out that their contract simply stated that they would “provide calligraphy services for print materials”. Because they weren’t able to defend their contract, they weren’t able to charge an additional fee for the seating chart.
If you have ever had a situation like this, you know just how important it is that your contracts aren’t ambiguous or open to misinterpretation. Because if they are, they’ll be really hard for you to defend and uphold. (And if you haven’t run into this situation yet - time to make sure your contracts are tight. These 4 tips will help you get them updated quickly!)
But if you’re writing contracts with ChatGPT, it’s very likely that your wording won’t be airtight enough for you to uphold what you think your contract says.
Another language issue with chatbots is the lack of personalization. Because every unique business and client relationship needs a personalized contract. Without knowledge of specific details of your situation, the AI Tools are going to have a hard time creating a contract that will accurately reflect your needs.
What it all comes down to is that ChatGPT doesn’t have legal experience or expertise. It’s a great tool, with a lot of applicable uses for small business owners. But it is not a lawyer, it has not trained as a lawyer, and it doesn’t have the hands-on experience that lawyers receive and then implement into their work.
The last thing you want is to have a contract that leads to legal disputes or liabilities because it has errors and omissions. If you aren’t trained as a lawyer, and can draw from your legal knowledge and experience, then writing contracts with ChatGPT should be avoided.
And that’s exactly why our templates here at The Contract Shop ® are so great. They’re attorney-drafted and peer reviewed, so you know you can trust in the legal expertise backing the creation of the contracts, without paying thousands in legal fees.
Not only that, but our templates coach the customer as they go, so that they know how to fill it out for their specific business. On top of that, they come with additional resources to help - like our “K” Club ™ or our Hold My Hand™ Guide, which will help you understand how to use and customize your contract templates.
Basically, our contract templates do all the things that ChatGPT can’t, and still save you the time and headache of trying to write your own contracts.
Oh, and since you’re busy putting together your contracts, you should check out our free Rock Solid Contract Blueprint. This comprehensive guide will walk you through everything you need to know about putting together a contract, making your current contracts more professional, and how to talk to your clients about your contract so that they feel protected by your agreement (and even more excited to work with you!).
Kevin Gallagher is the CEO of The Contract Shop®, a contract template store for creative entrepreneurs, freelancers, coaches, and more. His background is in helping online businesses grow, having previously worked at Allbirds managing part of their operations. He is proud to report that his digital artist wife Mandy is a happy customer of The Contract Shop®, and his main motivation is to help as many people like her as possible with the tools that they need to confidently manage their businesses.
Comments will be approved before showing up.