As August unfolds, a growing number of attorneys and business owners are sharing the same concern online:

“My AI-generated contract looked great—until it completely misrepresented a key clause.”

Across Reddit legal threads, Facebook groups for small business owners, and even X (formerly Twitter), there’s one rising issue in contract drafting: AI tools are accelerating the process—but introducing dangerous errors.

What’s Happening in August 2025?

More lawyers are turning to general AI tools like ChatGPT, Gemini, or custom LLMs to assist with basic contract drafting. But here’s the catch: most of these tools are not legally trained, nor are they jurisdiction-specific.

A post in a legal subreddit recently went viral, where a user shared how an AI tool left out a non-compete clause in a freelancer agreement—something crucial for the user’s line of work. Another solo attorney in a Facebook group revealed that an AI tool confidently generated a clause that violated their state’s consumer protection law.

This is not about the tools failing—it’s about lawyers treating general AI like legal experts, when in fact, the tools don’t guarantee compliance, accuracy, or enforceability.

Why This Is a Real Pain Point Now

There are three core reasons this topic is exploding in August 2025:

1. Surge in Solo/Small-Firm AI Use

The legal tech boom has made it easier for small practices to access powerful AI tools. But many are using general-purpose AI, not trained on legal data, and certainly not tailored to U.S. state-specific contract law.

2. Widespread Use of Contract Templates Online

Platforms like Canva, Notion, and even AI-driven proposal tools are offering “contract templates” for creators, influencers, and freelancers. The issue? They look professional—but often lack legal validity.

3. Clients Expect Faster Turnarounds

Law firms and in-house teams are under pressure to speed up the contract lifecycle. This has led to AI shortcuts—but at what cost?

Real Examples from Online Discussions

Let’s look at what actual people are saying this August:

• On Reddit’s r/legaladvice:

  “I used an AI tool to create a lease agreement and my landlord pointed out it didn’t include a clause about local eviction rights. I’m in Texas. Did the AI just miss it?”

• In a legal tech Slack group:

  “Our contract AI tool pulls from a clause library, but it inserted language last updated in 2020. We had to redo the whole thing to comply with new FTC guidelines.”

• In a small business Facebook group:

  “My NDAs from AI looked fine, but a lawyer told me they wouldn’t hold up if challenged because they were missing jurisdiction-specific language.”

These aren’t edge cases—they’re mainstream.

So What’s the Solution? Do We Avoid AI Completely?

Absolutely not. AI is here to stay—and when used correctly, it’s a powerful asset. But the solution isn’t to eliminate AI. It’s to use it strategically.

Here’s how lawyers and contract drafters can protect themselves and their clients:

✅ Use Legal-Specific AI Tools

Tools trained specifically on legal data—like Lexis+ AI, Casetext CoCounsel, Ironclad, or Spellbook—are better at generating enforceable, accurate contracts. They also tend to be jurisdiction-aware.

✅ Never Skip Human Review

Whether you’re an attorney or a business owner using AI-generated contracts, they must be reviewed by a qualified human before signing. Period.

✅ Update Clause Libraries Regularly

Even AI tools with clause libraries can become outdated. Ensure the legal language used reflects the latest legal standards and regulations—especially for employment law, data protection, and consumer contracts.

Key Questions People Are Asking This Month

🧠 “Can AI-generated contracts be legally binding?”
✔️ Yes, but only if they contain all the necessary legal elements—and comply with local/state/federal law.

🧠 “What’s the safest way to use AI for contracts?”
✔️ Use it to create drafts, but always have a lawyer finalize and approve the language.

🧠 “What’s the difference between general AI and legal-specific AI?”
✔️ Legal-specific AI tools are trained on statutes, case law, and validated contracts. General AI isn’t. Think of it like asking a librarian to write your contract instead of a lawyer.

Resources to Explore

Here are two high-authority, non-competitor sources if you want to dive deeper:

• U.S. Copyright Office: AI & Legal Contracts
  Covers the government’s stance on AI-generated work and legal authorship issues.

• Harvard Journal of Law & Tech – Spring 2025 Issue
  Features a breakdown of AI model compliance risks in contract generation.

Final Thoughts

AI isn’t killing contracts—it’s changing how we write them. But as we’ve seen in August 2025, drafting contracts with general AI tools—without legal review—is a recipe for disaster.

As a legal professional, your best move is to treat AI like an assistant, not an attorney. Speed is great. But accuracy? That’s everything.

If you’re looking to draft faster, smarter, and safer—especially here in Texas—our firm can help you integrate AI legally and responsibly into your contract processes.

📞 Call Adam Bernards Attorneys at +1 346 3556 111 or email info@adambernards.com to schedule a contract review or AI implementation consultation.