Discover how an AI contract review can speed up your workflow from analysis to signature. Streamline the reviewing, editing, and e-signing process all within Xodo Sign.
If you want to review a contract with AI so you can finalize negotiations faster, you might wonder how effective it can be.
Many professionals manually sift through pages of text to spot renewal clauses, penalties, or important deadlines. That process can be time-consuming, especially when juggling multiple agreements at once.
AI-based contract review offers a more efficient path by summarizing language, highlighting high-risk sections, and letting you edit directly before signing. The result is a faster, smarter way to handle legal documents.
In this guide, we'll discuss:
- Understanding the uses of AI for contract review
- The differences between AI and manual review
- How to use Xodo Sign to review, edit, and sign contracts
- Why use Xodo Sign for the contract review process
- Common questions about AI summarization in general
Understanding AI for contract review
Instead of relying on manual scanning or guesswork, an AI review can process each paragraph at once, identify key language, and even flag items that might need extra attention.
AI changes how contracts are handled, focusing on spotting essential clauses, references, and legal terms in a document. It brings key advantages to the process:
- Speed: AI models often process multi-page contracts faster than a person who has to read line by line.
- Accuracy: Well-trained AI machine learning solutions reduce the chance of missing important clauses or potential risks.
- Consistency: Repetitive tasks, like locating non-disclosure obligations, are carried out the same way every time.
Careful human review still matters, though. An AI contract review software tool can summarize an highlight sections, but legal nuances may still require human expertise to interpret them.
The best approach to the process integrates AI-assisted scanning with human oversight. You can decide which parts need edits or can be approved as-is.
Manual review vs. AI review
Comparing a manual review process with an automated one emphasizes the gaps in productivity and accuracy even more.
A traditional contract review process usually looks like this: you download the file, print it, read through each page, and take side notes. Then you obtain legal expertise to review potential risks. Finally, you mark changes and email the updated file to relevant parties. This routine can be tedious if re-negotiations are needed.
An AI-led approach automates many of these steps. You do a quick scan of AI-generated summaries, edit the text directly, and compare variations if needed. You then send the contract out and audit trails can instantly update you on the document's progress, speeding up wait and approval times.
Here is how they stack up:
Factor | Manual Review | AI-Assisted Review |
|---|---|---|
Time Investment | Several hours per contract | Potentially minutes for initial pass |
Chance of Omission | Higher if you miss a detail | Reduced through automated clause detection |
Consistency | Depends on reviewer’s expertise | Uniform analysis across every paragraph |
Collaboration | Email or shared docs, prone to delays | Instant updates within a secure platform |
While manual reviews still have a place, AI tools, like Xodo Sign, are transforming the document signing process, improving and eliminating the tedious manual tasks required.
How to review your contract with Xodo Sign
You can streamline the contract review process in Xodo Sign with its built-in AI Summarizer, Advanced Editor, and digital signing tools.
Follow the steps below to review your contract with Xodo Sign:
1. Log in to Xodo Sign
- Start by logging into Xodo Sign. If you don't have an account yet, sign up for a Xodo Sign Professional account to unlock Xodo Sign's AI Summarizer.
2. Upload your contract to Xodo Sign
- In the Dashboard, go to Quick Files > File Editor in the right-hand top corner and click on Select Files.
- Browse for your file and upload your contract.
3. Generate an AI-driven summary
- Once you have the file opened, click on the Xodo AI icon to expand the side panel.
- Click on Generate Summary to run the AI summarization.
4. Examine the summary results
- Read the generated summary carefully.
- Confirm any critical clauses and key terms including items such as renewal dates, confidentiality clauses, indemnities, and financial obligations.
5. Edit the contract as needed
- Edit your document by selecting any of the editing tools available.
- Correct any misleading language, add clarifying statements, or remove outdated details.
Once your edits complete, the final step is e-signing.
6. Prepare, finalize and sign
- Click on Prepare for Signature.
- Add signers, signing roles and your message to the updated contract.
- Click on Prepare.
- Add your form fields by dragging them onto the page. You can add your own completed signature to the page.
- Once done, click on Send.
Using artificial intelligence during the review process lets you focus on the important points and on making smart decisions, whether you're summarizing a contract or reviewing a lease agreement.
Why use Xodo Sign for the contract review process
Xodo Sign helps you review a contract with AI while simplifying every subsequent step. Generic AI tools can scan text and generate summaries, but they often lack robust editing and collaboration features.
Here's what makes Xodo Sign stand out:
- End-to-End Platform: Scan, read, and edit your PDF in one place, then finalize the contract with legally valid e-signatures.
- Direct Editing: No third-party software is required to adjust language or remove entire paragraphs. You upload your file, and Xodo Sign’s built-in Advanced Editor is ready.
- Risk Flagging: Key clauses are identified for easier examination and possible revisions. This makes reviewing a lease, vendor contract, or a complex agreement easier than ever.
- Focus on Security: Contracts often contain delicate information. Xodo Sign uses strong encryption, advanced security, and collaboration controls. Your contract data remains protected while you handle or finalize the document.
- Single Workflow: You avoid bottlenecks triggered by switching between apps or sending email attachments. You can manage contracts efficiently and everyone sees the latest version in real time.
- Cost Savings: Contract management and AI contract analysis software can be expensive. Xodo Sign provides you all the essentials needed as a scalable solution at only a fraction of the cost.
If you're looking for custom Xodo Sign plan for your team, check out our pricing plans or contact our sales team with your inquiry or a custom quote.
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Frequently asked questions
Does AI contract review eliminate the need for legal counsel?
AI is a tool, not a replacement for legal expertise. It speeds up the initial review phase. However, legal professionals are necessary for final sign-off, especially with lengthy contracts with complex legal language.
Is the AI in Xodo Sign safe for sensitive data?
Yes. Xodo Sign employs 256-bit HTTPS Encryption methods to protect stored and in-transit documents. The platform also follows SOC 2 compliance standards to help safeguard private data from unauthorized access.
Do I need a specific file format to use AI?
With Xodo Sign, the PDF format is commonly chosen because of its universal compatibility, but Word files can work equally well.
How does Xodo Sign handle repeated contract changes?
Xodo Sign lets you update the contract text directly as needed. If you reopen the document, your prior edits and changes remain accessible.
You can either download revised versions, save drafts, or continue adjusting until you are ready to finalize and sign. Once a signature is added to the actual contract, though, any edits made to it will nullify the agreement. A new version will have to be drafted and reviewed.
Is AI reliable for spotting ambiguous language?
AI systems excel in flagging terms that appear frequently in contract law, such as termination or indemnity. However, ambiguous wording still requires human interpretation. It is wise to carefully evaluate flagged sections and generated summaries so you catch any phrasing that AI might interpret differently than you do.
Do all parties involved need to use the same AI tool?
Not necessarily. You can share a link or an updated file with external stakeholders, and they can sign from any device. Xodo Sign, for instance, does not require your partners to log in to an AI platform to complete their part of the process.
Optimize your contract reviews
Integrating AI into your contract review is a practical way to save time and reduce potential oversights. Instead of reading pages manually, you have a streamlined and automated system.
Xodo Sign embraces this concept by blending AI analysis with direct PDF editing and secure e-signing. Whether you handle a single-page NDA or a lengthy employment contract, you keep everything simplified: one workflow from first draft to final approval.
See how it works! Try Xodo Sign today.