Contacts
Follow us:
Get in Touch
Close

Contacts

Ahmedabad, India

+ (123) 1800-234-5678

info@theaidivision.com

LexiDraft: Automated Legal Contract Review & Redlining

Projects

Brief and project description

An AI legal associate that reviews vendor contracts, redlines risks against your corporate playbook, and prepares documents for final sign-off.

LexiDraft is an autonomous contract review agent designed to unblock legal bottlenecks. Acting as a "Junior Counsel," it ingests vendor contracts (NDAs, MSAs, DPAs), compares them against your company’s internal Legal Playbook, and automatically "redlines" (edits) risky clauses. It provides a marked-up document with comments explaining why changes were made, reducing contract review time from days to minutes.

Let's Connect

The Challenge

A mid-sized Technology Firm was losing deal velocity due to legal delays.

  • The Review Backlog: The General Counsel was the only lawyer for a 500-person company. She was buried under a pile of standard NDAs and low-value vendor agreements, meaning critical sales contracts took 5 days just to get a “first look.”

  • Inconsistent Risk: Without a standardized process, different department heads were signing contracts with varying liability terms to “get the deal done,” exposing the company to significant unmonitored risk.

  • High Outsourcing Costs: To cope with the volume, the company was spending $30k/month outsourcing simple contract reviews to external law firms.

Legal review should be a safety net, not a bottleneck. By automating the redlining of standard agreements, we freed the legal team to focus on high-stakes negotiation rather than correcting formatting and standard clauses.

Legal Consultant, The AI Division
TellerSense AI Voice Agent The AI Division Infographic

The Solution

The AI Division engineered a RAG-based Legal Agent trained specifically on the client’s risk tolerance.


The Workflow Breakdown

1. Playbook Digitization:
We converted the client’s “Legal Playbook” into a structured rule set (e.g., “Never accept governing law outside of Delaware,” “Liability cap must not exceed 2x fees,” “Payment terms must be Net-45”).

2. Automated Redlining & Commenting:
The AI reads the incoming PDF or Word document. If a clause violates the playbook, it tracks changes and inserts a comment explaining the rejection. It proposes the pre-approved standard language automatically.

3. Risk Scoring:
The system assigns a “Risk Score” (Low/Med/High) to every contract. This allows the human lawyer to prioritize the most dangerous agreements first, while “Low Risk” NDAs can often be fast-tracked with a quick glance.

 


Technology Stack

  • Document Parsing: Azure AI Document Intelligence (OCR for scanned PDFs)

  • LLM Logic: GPT-4o (High context window for long legal agreements)

  • Comparison Engine: Diff-Match-Patch algorithms (To generate track-changes format)

  • Integration: DocuSign CLM / Ironclad API

  • Vector Store: Pinecone (For retrieving standard clauses)

The Results

  • 85% Reduction in Review Time: Standard NDAs are now reviewed and redlined instantly, requiring only a 2-minute final check by counsel.

  • Standardized Compliance: Every contract now adheres strictly to company policy, eliminating rogue terms signed by impatient managers.

  • Cost Savings: Reduced external legal spend by $15k/month by bringing routine reviews in-house via AI.

Reduction in Review Time
0 %
Per month savings
0 k