Quickly turn complex contracts into clear summaries with AI. Discover how to review, edit, and sign important agreements faster using Xodo Sign.
Reviewing contracts line by line takes hours, especially when you're scanning for key dates or payment terms.
AI contract summarization tools can help legal teams automate this process, making reviews faster and more focused. With Artificial Intelligence, you can manage contracts more efficiently, surfacing important clauses in minutes instead of manually combing through pages of legal text.
Law firms could save up to 240 hours a year by using AI to handle initial contract reviews, according to Thomson Reuters. This shift signals a broader change in how firms approach contract analysis, freeing up time for informed decisions that improve negotiation outcomes.
In this guide, you’ll learn how to:
- Understand the benefits of using AI to summarize contracts
- Use Xodo Sign to summarize contracts in five simple steps
- Know when to rely on human review for accuracy and compliance
- Get answers to common questions about AI contract review
Why use AI to summarize contracts?
Summarizing a contract manually is time-consuming. You often end up scanning repetitive legal language just to identify the few paragraphs that really matter.
AI-based tools simplify this process by scanning the contract and generating a short overview of key details.
Here is how AI summarization can help:
- Save time: Quickly spot sections about fees, timelines, or renewal clauses so you can move on to decision-making.
- Lower risk: A concise summary makes it easier to catch small but important details, like penalty fees or termination dates.
- Speed up revision: AI can highlight repeated or irrelevant points, helping you trim unnecessary text and revise more efficiently.
This also makes it easier to review contracts with AI for deeper insights. By combining AI powered summaries with your own judgment, you keep the final decision under your control.
How to Summarize a contract with AI using Xodo Sign
Xodo Sign’s AI Summarizer helps you break down complex clauses, edit PDFs, and finalize signatures all in one place.
Below is a step-by-step walkthrough showing how to turn a lengthy contract or legal document into a concise summary.
Step 1: Log in or sign up
Start by logging into your existing Xodo Sign account or creating a new one.
Note: The AI Summarizer and PDF editing tools are available with a Professional plan.
Step 2: Upload your contract
Click "File Editor" in the left-hand menu and upload your contract. You can use MS Word or PDF files. If your file isn’t a PDF, Xodo Sign will automatically convert it to an editable format.
Step 3: Summarize the content
Once your file is uploaded, click the AI Summarizer icon in the top-right corner. Then select "Generate Summary" to process the contract. The AI scans for vital information, key terms, clauses, obligations, and deadlines.
Note: Xodo Sign uses the Google Gemini API for summarization. Your content is not stored or shared.
Step 4: Examine the results
After a few moments, you’ll see a summary in bullet points or short paragraphs. Review the key contract highlights such as renewal clauses, confidentiality terms, or payment schedules.
This saves valuable time and makes lease reviews easier, especially when confirming key points like move-in dates or monthly rates. For more lease-specific tips, check out can AI review a lease agreement.
Step 5: Edit and sign
Once you're satisfied with the summary, you can edit the PDF directly in Xodo Sign. Edit text to adjust clauses, add signature fields, rearrange pages, etc.
When ready, prepare the contract for signing and apply your e-signature before sharing it with other parties, without leaving the Xodo Sign platform.
Want to explore how artificial intelligence supports other contract types? Read AI and contracts.
When to rely on human review
AI can process large volumes of contract data, but human insight is still necessary for strategic decisions and complex terms that require negotiation.
If you're working with non-standard clauses or contracts in specialized industries, it's a good idea to have a legal professional review the final version.
This approach combines speed with accuracy to improve the contract review process. AI helps you identify key information and streamline your workflow. A human reviewer can then assess whether the language supports your goals and flag any hidden risks.
Legal input is especially useful when evaluating potential risk tied to warranties, indemnification, or liability clauses. By pairing AI tools with expert review, you further strengthen your contract management.
Frequently asked questions
Can I use ChatGPT to summarize a contract?
Yes, you can use ChatGPT to summarize a contract. It can help you identify key clauses, deadlines, and obligations. It's useful for getting a quick overview, but it shouldn’t replace a full manual review.
To reduce potential risk and catch hidden issues, always have a legal professional verify the summary for accuracy and compliance.
What types of contracts work best with AI summaries?
AI tools work well with contracts that contain repetitive or standardized language. This includes sales agreements, lease documents, employment contracts, and NDAs. Human review is still recommended for highly specialized contracts.
Do I still need a lawyer after AI summarizes my contract?
Yes. AI can help surface important clauses and streamline the contract review process, but it doesn’t replace legal expertise. If your contract involves potential risk or complex terms, a legal team can provide the insight needed to make informed decisions.
How secure is my contract data with AI tools?
Security depends on the provider. Xodo Sign uses 256-bit encryption and SOC 2 compliance to protect your contracts. These safeguards support strong risk management practices when working with sensitive contract data.
Can AI handle multiple contracts at once?
Some platforms support batch processing. Xodo Sign currently focuses on one document at a time, which helps maintain consistency and reduces the chance of oversight.
Will the AI summary preserve formatting and images?
AI focuses on extracting and analyzing text. Formatting and visuals may not carry over into the summary. You can always refer to the original PDF in Xodo Sign to verify layout, images, or design elements.
Are AI summaries legally binding?
No. AI-generated summaries are for reference only. The original, signed contract remains the legally binding document. Always rely on the full contract for any legal decisions or dispute resolution.
Next steps for contract efficiency
Knowing how to summarize contracts with AI helps speed up deal closures while improving clarity. AI powered contract summarization significantly reduces time consuming manual effort needed.
Xodo Sign provides a streamlined way to manage contracts, summarize, edit, and sign all in one platform. This approach supports cost savings and potentially reduces the chance of human error. It also helps legal teams shift focus from repetitive tasks to strategic planning and risk management.
To start reviewing contracts more efficiently, log in to your Xodo Sign account. If you're exploring advanced features or want to upgrade your plan, contact the Xodo Sign sales team or sign up for a new account.