What Small Businesses Should Demand from AI Contract Review Tools

Quality contract review is pricey. But not all small business owners can afford expensive lawyers. Or a lawsuit.

Regrettably, in pursuit of revenue, an entrepreneur's handshake deal often is more fiction than reality.

The contract may include agreed-upon pricing, delivery dates, and data licenses, if applicable. But does the small business owner understand important contract provisions, such as:

• the meaning of limitation of liability;

• the meaning of indemnification; and

• obligations relative to raw material price increases due to tariffs?

If not, what is the solution? What self-help exists to understand, in plain language, the meaning of all this legalese?

Artificial intelligence, yes—but what type? Why not use ChatGPT or your preferred AI chatbot alternative to review your contractual agreements and identify potential risks? Is contract redlining even possible?

What Legal Tech Capabilities Should Small Businesses Demand?

As a legal tech company, Obviate sees a few risk-focused features as table stakes for any serious AI contract risk review and AI contract redlining solution:

Key AI Contract Review Features Offered by Obviate.ai

✳️ High-Risk Clause Identification

Automatically flag clauses that pose outsized risk (e.g., uncapped liability or vague indemnities) so lawyers know where to focus first.

✳️ Risk Assessment

Compare terms against your standard positions (playbook) and highlight any non-standard language or deviations from approved wording.

✳️ Explainability

For each flagged issue, provide plain-language explanations of why it’s risky and suggest mitigation steps (such as alternate clause language or added protections).

✳️ Actionable Redlines

Make it easy to turn insights into edits. The tool should enable users to instantly apply recommended changes or insert approved clauses, thereby accelerating negotiations and ensuring that risks are effectively mitigated.

AI contract review tools aren't a luxury anymore — it’s a requirement for SMBs managing risk without in-house legal teams.

Want to see how Obviate helps in contract reviews and negotiations?🔗 Request a demo at obviate.ai