Can ChatGPT Write Your Business Contracts? We Put AI to the Test
As a business owner, you probably love anything that saves you time and money—who doesn’t? So, when you hear that AI tools like ChatGPT can generate contracts in seconds, it’s tempting to think, Great! One less thing to worry about.
But before you hand over your legal work to a chatbot, let’s take a closer look at what ChatGPT can and can’t do when it comes to drafting contracts—and why relying on AI alone might not be the best move for your business.
We Put ChatGPT to the Test
Curious to see how well ChatGPT could draft a contract, we decided to run an experiment. We gave it a solid prompt—outlining key business terms—but left out any legal jargon to mimic what a typical business owner might do.
The result?
The contract was short, generic, and missing key protections.
Digging deeper, we found several major gaps:
No limitation of liability clause to cap financial exposure
No indemnification provision to protect against legal claims
No clear dispute resolution process
Essentially, ChatGPT drafted a contract that looked official on the surface but left a business vulnerable to serious risks.
Can ChatGPT Get It Right with a Little Help?
We went back and forth with ChatGPT, feeding it more details and pointing out what was missing. With each iteration, the contract got better—but only because we knew exactly what to ask for.
That’s the catch. ChatGPT can only draft a contract based on the information you provide. If you don’t know what legal protections you should have, you won’t know what’s missing—and that’s where things get risky.
The Bottom Line: AI Is No Replacement for Legal Expertise
Let’s be real: ChatGPT is a fantastic tool for brainstorming, summarizing, and even helping with basic contract language. But it’s not a lawyer. It can’t tailor agreements to your business, foresee potential legal disputes, or ensure that your contract is enforceable under state-specific laws.
If you’re running a business—especially one that’s been around for a few years—you’ve worked too hard to leave legal protections up to chance.
Final Thoughts
AI tools are changing the way we do business, but when it comes to legal documents, there’s no substitute for expertise. ChatGPT might be able to draft something, but that doesn’t mean it’s the right contract for your business.
Here’s the good news: You don’t need to choose between risky AI-generated contracts and paying thousands for a custom legal agreement. Attorney-drafted contract templates offer the best of both worlds—legally sound agreements created by professionals, at a fraction of the cost of hiring a lawyer from scratch.
Instead of risking gaps in your legal protections, invest in attorney-drafted templates that give you peace of mind and keep your business legally secure—without breaking the bank.
At Contract Studio, we provide comprehensive, ready-to-use legal templates designed specifically for business owners like you. Each contract is drafted by experienced attorneys (real humans!) and includes the essential protections ChatGPT tends to miss.
Want to see the difference for yourself? Check out our contract templates and make sure your business is protected the right way.
