The honest answer is usually both, in sequence. AI review costs a dollar and takes an hour. Lawyer review costs several hundred to several thousand dollars and takes days. Use AI to understand what you're signing; use a lawyer where the stakes require judgment, representation, or privilege.
When AI contract review is enough
AI review is usually enough for these situations:
Standard business contracts under moderate stakes
NDAs, SaaS agreements, standard vendor contracts, employment offer letters, standard commercial leases under $50,000 total value. These contracts follow well-known patterns. AI can identify the standard shape and flag any deviations quickly and accurately.
Second opinions on contracts a lawyer already drafted
Your lawyer sent you a contract they negotiated. It's probably fine. AI review as a second set of eyes catches inconsistencies, missing definitions, and clauses that might have been overlooked. This is one of the highest-value uses of AI review.
Prep before a lawyer meeting
Take the AI review with you to your lawyer. You'll spend less lawyer time on "what does this clause mean" and more on "how should I negotiate it." A well-prepped lawyer meeting can cost half of an unprepared one for the same result.
Understanding a contract before you sign
You're going to sign this contract anyway (the counterparty won't renegotiate, the alternative is walking away from the deal). AI review at least lets you sign with a clear picture of what you're agreeing to.
When you need a lawyer, not AI
High-value M&A and funding
Acquisitions, investment rounds, term sheets, cap table changes. Get a lawyer. The cost of getting these wrong is far higher than the cost of legal fees.
Litigation-adjacent disputes
You've been sent a notice of dispute, a demand letter, or a cease-and-desist. You need a lawyer, both for the substantive advice and for attorney-client privilege on your communications.
Regulated industries
Healthcare, financial services, defense, insurance, telecommunications, cannabis. The regulatory overlay changes the analysis in ways AI review can't reliably capture. Industry-specialist lawyers are worth the fee.
Cross-border and jurisdiction complexity
Contracts spanning multiple countries or governed by law you don't practice in. AI can flag "this is governed by German law"; a German lawyer can tell you what that actually means for your business.
Employment terminations and severance disputes
Either side. State law, notice requirements, and severance obligations vary by jurisdiction and can create real personal liability for the executives involved.
Anything you'd be furious about losing
If the downside of getting the contract wrong is bigger than a few thousand dollars in legal fees, get a lawyer. This is the simplest test.
How to use both together
- Get the AI review first. Read it. Understand what the contract says and where the risks are. This takes 15-30 minutes.
- Decide whether the stakes justify a lawyer. Use the tests above. Most contracts don't.
- If yes, take the AI review to the lawyer. Ask them to focus on the flagged issues and anything else that concerns them. This can cut lawyer time in half.
- Use the lawyer for negotiation and sign-off. The AI review is your prep; the lawyer is your representation.
AI review runs $1-$50 per contract. Lawyer contract review runs $250-$750 per hour, with a simple contract taking 1-3 hours. A well-scoped lawyer review might be $500-$2,000; a full negotiation cycle can be $5,000-$25,000. AI review isn't replacing the lawyer at that price point. It's a preparation layer that makes lawyer time more efficient.
What AI review is not
AI contract review is not legal advice, not representation, not privileged, and not a substitute for judgment on high-stakes decisions. It's a structured second opinion. If you need someone to sign off, you need a lawyer. If you need to understand what you're signing, AI review is usually enough.
Upload any contract, get a clause-by-clause plain-English review in about an hour with the risks flagged. $1 to try. Not legal advice: a structured second opinion before you sign or take it to a lawyer.