AI for Legal Contracts? Here’s Why It Could Cost You More Than It Saves

As a tech contractor in Canada, you’ve likely used AI to speed up coding tasks or maybe even draft documents. But when it comes to legal contracts - like your service agreements, shareholder documents, or incorporation setup - should you trust AI to do the job?

We asked Daniel Rizzi, Barrister & Solicitor at DiMinno Rizzi In Association, and here’s what he had to say on Careers in the Cloud – Episode 37:

“AI is at a point now where it could probably spit out a contract that’s 80% correct... But if you’re doing really big projects, is 80% fine? Probably not.”

Daniel explains that while AI tools can help with low-level tasks, legal work demands precision, context, and risk management - especially when you’re negotiating six-figure contracts or handling sensitive IP. He added:

“Another lawyer can tell. If you’re trying to impress a big client... and their lawyer sees a ChatGPT-style contract, they’ll ask: why couldn’t you spend two grand to get this done properly?”

The Bottom Line:

• AI can assist with ideas, but legal contracts aren’t the place to cut corners.
• A poorly written agreement can hurt your credibility - or worse, cost you in court.
• If you're scaling or selling a business later, those early AI shortcuts could come back to bite you.

As Daniel says: “You’ll do it anyway - assuming you’ll be successful. So just get it done now, pay less money, and have everything set up.”

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