What is ChatGPT?
Why is everyone talking about ChatGPT?

What is ChatGPT? Here’s why legal teams are worried

Legal teams are constantly on the lookout for new tools to streamline their processes and make them more efficient. One tool that has garnered a lot of attention in recent weeks is ChatGPT, a natural language processing (NLP) tool that boasts more than a million users and is creating a new-found buzz in the legal fraternity due to its ability to draft contracts seamlessly. This AI-powered tool can carry a conversation through multiple queries in addition to generating software code all thanks to the enormous amount of data fed into the system. Delve deeper into what is ChatGPT and how legal teams are using it to automate their manual work. 

What is ChatGPT? 

ChatGPT is OpenAI’s popular GPT-3.5 language-generation software, designed to replicate human-like conversations and display human-like communication abilities. Some of its features include asking questions, refuting incorrect claims, creating blogs(like this one), and even admitting its mistakes, according to an OpenAI summary of the language model.

ChatGPT was trained on an enormous amount of text data. It learned to recognize patterns that enable it to produce its own text mimicking various writing styles, said Bern Elliot, a vice president at Gartner. OpenAI doesn’t reveal what precise data was used for training ChatGPT, but the company says it generally crawled the web and used archived books and Wikipedia.

Should legal teams use ChatGPT?

As seen across LinkedIn, legal professionals are using this intelligent tool to draft contracts in several ways. One common use is to generate initial drafts of contracts based on input from the legal team. For example, a legal team might provide ChatGPT with a list of provisions that need to be included in a contract, and ChatGPT will generate a draft of the contract based on this input. This can save legal teams a significant amount of time, as they do not need to start from scratch when drafting a contract.

Another way that legal teams are using ChatGPT is to review and revise existing contracts. OpenAI’s tool can analyze a contract and identify any inconsistencies or errors while suggesting revisions that align with legal language and terminology. 

This all sounds great but ChatGPT cannot replace humans. It can surely help a novice navigate through the contracting process, but ChatGPT can never replace the legally trained human eye. CHATgpt is not intended to replace human lawyers, but rather to assist them in their work. Legal teams still need to review and approve all contracts before they are finalized, and CHATgpt is not capable of providing legal advice or guidance.


Artificial Intelligence Driven Contracting

ChatGPT has showcased how AI can be leveraged by legal teams to automate contracting and asses risk, but due to its security concerns, legal teams cannot completely trust open-sourced tools like ChatGPT to meet all their contracting needs. 

So how can legal teams utilize cutting-edge AI technology for their contracting while ensuring top-notch security?

AI-powered CLM Software

A smart CLM system is designed specifically for managing contracts and is more secure than a general-purpose NLP tool like ChatGPT. CLM systems often have built-in security measures such as encrypted data storage and multi-factor authentication to protect against unauthorized access to sensitive contact information.

Many CLM systems include features such as redlining and collaboration tools that allow legal teams to easily share and review contract drafts with their counterparts. This speeds up the negotiation process and ensures that all parties are on the same page. Another key feature, CLM tools can automatically extract key data points from contracts, such as expiration dates and payment terms, and populate them into a centralized database. This can help legal teams quickly and easily access important contract information and track the status of their contracts.

For these reasons, legal teams may want to consider using a smart CLM system to manage their contracts instead of relying solely on CHATgpt.

Volody Smart Tool increases productivity by 70% 

Trusted by enterprises around the globe, Volody’s smart CLM tool helps legal teams streamline their entire contracting operations and manage all their obligations seamlessly. With smart features like risk analysis, digitizing physical agreements, redlining, clause extraction & many more, our AI-powered tool lets legal teams automate manual work, allowing them to focus on big-picture strategic problems. Transform the way you interact with contracts by turning them into digital data-driven assets with Volody’s AI-enabled contract lifecycle management tool. 

Check out our tool for free by signing up today and exploring how you can transform your contracting!

Volody is a pioneer in Contract Lifecycle Management (CLM) software since 2016. Our innovative AI-powered software automates tasks, extracts insights, & improves efficiency. Volody has delivered exceptional results for numerous firms, including small businesses & Fortune 500 companies across the globe. In the fast-paced world of CLM software, Volody stands as a consistent innovator & a partner you can trust.