028: Lawyer-Backed AI vs. Generic AI: Why It Matters

In this episode of the Contract Playbook Podcast, Casey Handy-Smith dives into the difference between generic AI tools like ChatGPT and lawyer-backed AI for contract review. Through an experiment, Casey compares how each handles contract clauses and explains why this distinction matters for creators and talent managers.

Timestamps:

• 00:00 - Introduction to AI in Contract Review
  Casey introduces the episode’s focus: comparing lawyer-backed AI and generic AI tools for contract review.
• 00:20 - Lawyer-Backed AI vs. Generic AI
  The differences between AI tools designed for legal purposes and those designed for general use, and why it’s important to use lawyer-backed AI for contracts.
• 01:57 - Experiment: ChatGPT vs. Lawyer-Backed AI
  Casey runs an influencer agreement through both ChatGPT and a lawyer-backed AI tool to illustrate the discrepancies and potential risks.
• 02:49 - Key Findings from the Experiment
  How ChatGPT missed key usage distinctions, provided inaccurate definitions, and suggested overly broad redlines, while the lawyer-backed AI tool gave more accurate, nuanced suggestions.
• 12:54 - Confidentiality Risks with Generic AI
  Discussing the risks of using generic AI tools, especially around confidentiality, as these tools may expose sensitive contract details.
• 14:11 - The Power of Contract Playbooks
  How contract playbooks, built into lawyer-backed AI tools, help streamline the process and ensure consistent, high-quality reviews.
• 16:22 - Scaling Your Business with Lawyer-Backed AI
  The benefits of using AI in scaling your business, particularly for agencies managing multiple contracts, and how it aids in training new team members.
• 18:17 - Conclusion and Takeaways
  Casey wraps up by highlighting the importance of using lawyer-backed AI to improve contract review processes and protect business interests.

Key Takeaways:

• AI Comparison: Generic AI tools like ChatGPT miss critical distinctions in contracts, such as intellectual property usage and indemnification clauses, which can lead to incorrect or incomplete advice.
• Confidentiality Risks: Generic AI tools pose significant confidentiality risks, as they store user data that could expose sensitive contract details, unlike lawyer-backed AI tools that prioritize privacy.
• Contract Playbooks: Lawyer-backed AI integrates contract playbooks that ensure standardized, accurate revisions and redlines based on real legal strategies, tailored to your business needs.
• Scaling with AI: Using lawyer-backed AI not only speeds up the contract review process but also ensures consistency across contracts, making it easier to scale and train new team members.
• Actionable Guidance: Lawyer-backed AI gives actionable, reliable advice that aligns with your business goals, making contract negotiations smarter and more efficient.

Links & Resources:

• The Contract Collective™ – Join the membership for access to our AI-powered Influencer Agreement Playbook and a supportive community of influencer talent managers and creators.
• Boss Contract Society – Find lawyer-drafted contract templates to protect your business and intellectual property.
• Connect with Casey on LinkedIn – Stay up to date with more contract tips and insights from the entertainment and influencer marketing worlds.

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