September 10, 2025

Best AI Contract Generators 2025: Business Automation Tools for Effortless Contract Creation

Best AI Contract Generators 2025

What is an AI Contract Generator and How Do They Work?

AI contract generators are software tools that use artificial intelligence to draft, review, and customize legal agreements. Such tools do not rely on humans for any inputs except the initial prompts, pre-approving of templates, and the setup to draft and streamline the process of generating contracts.

How do they achieve such levels of accuracy and efficiency? AI contract automation uses large language models and natural language processing to analyze patterns in extensive contract data. Then, these tools utilize the data to create legally accurate documents in response to prompts.

Curious about how contract automation software streamlines contract creation and management with advanced tools and AI workflows? Read our blog on the top 5 contract automation tools and their features.

Key Takeaway:

●  AI contract generators streamline the management of legal agreements, reducing manual work and improving efficiency.

● Tools like Perfect Doc Studio and Juro offer advanced automation features, including clause suggestions, CRM integration, and built-in signing workflows.

● Generative AI enhances contract quality by simplifying legal language, identifying potential risks, and ensuring compliance through data.

● Implementing an AI contract tool has some prerequisites and needs to be continuously refined to reach its ideal operational capacity.

AI Contract Generator’s Key Five Steps

There are many tools on the market, most of which have a few steps unique to them. However, there are some key steps that will remain the same as they are the crux of AI contract automation.

AI 5 steps

Structured Data Intake: Users would first complete a questionnaire that captures parties involved, scope, key dates, governing law, and more.

Template and Clause Matching: The AI engine analyzes the responses and selects an appropriate base template from the list of pre-approved templates. It pulls in relevant clauses from the vetted clause libraries based on transaction type and relevant jurisdiction.

AI-Driven Drafting: Large language models convert data and clauses into legally structured text that comes together to create the first draft.

Automated Compliance Checks: The system runs instant compliance checks against regulatory requirements and organizational standards, flagging potential risks before document finalization.

Collaborative Review and E-signature: The system also handles collaborative review, which includes redlining, commenting, suggesting revisions, and more. AI’s intelligent automation also adds another layer of security and efficiency to e-signatures.

Discover how AI-powered contract automation is transforming the way legal agreements are created and managed. Check out how AI is transforming legal contract automation.

According to a survey by LegalOn Technologies and In-house Connect, AI adoption for contract review has increased by 75% every year, with 14% of legal teams using AI tools, up to 18% just the previous year. 

Additionally, nearly two-thirds of legal professionals are currently exploring AI solutions, showing strong momentum in the early stages of adoption.

Legal teams report significant benefits from AI-powered contract tools, including:

● 79% saving time on contract review.
● 69% experiencing faster turnaround times.
● 69% reducing manual work.

Why use an AI contract generator?

Apart from the obvious reason that it’s quick and handy, an AI contract generator saves time and money by accelerating the contract drafting process. It maintains accuracy and consistency, ensures compliance with current regulations, reduces errors, and manages the entire process from creation to signing. The part about it isn’t just that it drafts a contract; it also automates the signing process between two parties.  

Think of it as a more innovative alternative, less manual back-and-forth, faster execution, and AI-generated agreements customized to your needs.

Primarily, any user aims to remove friction from the contract creation and signing process. How exactly can this be done? The adoption of an AI contract generator empowers users to automate everything, just pre-approve templates and scale based on the volume of your business. Maintaining a centralized cloud repository and the use of electronic signatures streamlines the completion of the signing process.

Now isn’t this the goal of any contract creator? Do it efficiently and accurately, and get the documents signed.

Here are some of the features of AI contract Generation that users across the internet rave about: 

● AI-generated contracts based on prompts or templates.
● Smart suggestions based on prompts or templates.
● Built-in signing flow for both parties (no mail tag).
● Optional legal review plug-in (for later stage).
● An AI tool can draft a contract with just a few clicks.
● AI tools enable easy customization and make changes based on your specific requirements.

Simply by empowering self-service with pre-approved templates and AI-powered tools for high-volume, using a centralized cloud repository, and using electronic signature platforms to enable fast, account-free signing.  

Benefits of Using AI Contract Generators Compared to Traditional Contract Tools

You must’ve heard about contract generators years ago, and maybe even tried a few. However, AI Contract automation tackles a whole new ball game.

1. Time spent on drafting contracts: The most obvious is how traditional contract tools are time-consuming, require manual intervention, and multiple rounds of meetings with people to negotiate and finalize an agreement. The adoption of AI in contract tools reduces the time spent on drafting with customizable contracts with pre-approved templates.

2. Review and editing time: Any agreement will undergo multiple rounds of review. Instead of sending email threads about it, AI contract generators simplify this process through collaborative review for negotiations, redlining, read-time suggestions, and automated error-checking.  

3. Time for approval: Traditional methods involve several rounds of review and legal consultations, costing billable hours and time. With modern contract automation, legal professionals can expedite approvals through digital signatures and automated workflows.  

4. Accuracy and risk factors: To err is human, and there is no guarantee that manual errors can be eliminated just by checking them a few times. A system, on the other hand, is not going to make a mistake; rather, it will flag any inconsistency, missing clauses, compliance risks, and ambiguous language, reducing legal risks.  

5. Scalability: Traditional contract generation struggles to scale for businesses with high contract volumes. While, AI contract generators handle large volumes with consistent quality and speed, they meet growing business needs.

Explore the full comparison of AI vs traditional contract management to determine which is more effective. 

Best AI contract generator software:

Perfect Doc Studio (PDS) 

Perfect Doc Studio can generate contracts, automate workflows, and includes features that make it a good solution for your legal documentation’s pain points.

PDS’s ‘Write for me’ is an AI text generation feature that lets you draft legal content with ease. Its extensive template library includes not just the base templates but also specialized reusable sections and pages. Such reusable pages and sections cover governing law and jurisdictions, confidentiality clauses, force majeure, provisions, and more, making the addition of boilerplate clauses a breeze. With conditional logic and business rules, PDS dynamically generates clauses, aiding in the contract generation process. Plus, with multichannel delivery, get your documents signed through mail, WhatsApp, post, and more.

PDS’s native integration engine connects with core legal systems, such as Guidewire, Mycase, and Clio, as well as integrating with e-signature platforms without any additional costs. It also enables real-time, data-driven contract automation with inputs like SQL, JSON, and XML, making it ideal for scalable contract management.

How it works: Start by selecting a dynamic smart template from the content library. It automatically pulls case details from legal systems, Excel sheets, or API. Once the data is filed, a structured workflow ensures quick and easy processing of negotiation and collaborative review. After everything is finalized, PDF’s sends out the document to be signed on the client’s preferred delivery channel and notifies you when it is completed.

Based on user reviews, here are the benefits:

1.User-Friendly Pricing: Perfect Doc Studio’s pricing is extremely affordable, especially considering the features it offers. It charges $0.008 per page.

2. Multichannel Delivery of Documents: Sending out documents in multiple channels for signing makes it more efficient and get them signed quickly.

3. Dynamic Templates: The centralized repository has numerous dynamic templates that users can pick, plus they can draft their own template with a drag-and drop builder.

Juro AI contract generator

Juro simplifies contract creation for businesses by handling contracts quickly and accurately. This tool is designed to make contract creation effortless, fast, and collaborative by centralizing contract management through its integration with over 5000 tools.

Juro lets users type a simple prompt or fill out the smart form, then converts it into a full, legally valid contract within seconds. This software uses a cutting-edge editor that tracks every change and stores contract data as searchable and structured information. By this the contracts are easier to manage, search, and update.

Juro features an AI-powered review system with intelligent review capabilities and a no-code workflow creator to set up contracts for approval once they are reviewed. The intelligent tracker automates reminders and native e-signature capability collects legally binding signs within the platform.

Based on user reviews on G2, here are the benefits:

1. Excellent Customer Support: Users report quick resolutions both through live chat and dedicated customer success managers.

2. Customizable Templates and Workflows: The system allows customization of templates and review flows for a range of contract types.

3. Enhancing Efficiency: There is a notable reduction in time spent on categorizing, filing, and retrieving contracts amongst users.

HyperStart CLM

HyperStart CLM is a platform that uses AI to help with contract creation, approval, negotiation, signature, storage, tracking, and InFlight. It is an all-in-one contract management system that makes contract drafting, reviewing, and signing quick and easy.

HyperVerge AI, with its training of analyzing over one billion documents, powers Hyperstart CLM. It excels in metadata extraction, accelerated drafting, and AI-powered redlining. It offers enterprise-grade security with compliance standards such as ISO 27001:2013 and SOC Type 2.

With Hyperstart, contract management is transformed from a manual procedure into a digital one, saving time and ensuring nothing is missed. HyperStart claims that the contract repository can be implemented in one week, and workflow customization takes about three weeks.

Based on user reviews on G2, here are the benefits:

1. Automated Approval Workflows: The platform makes contract approvals easier by automating steps, cutting down manual work, and speeding up the process.

2. AI-Driven Data Extraction: AI tools effectively extract key data points from contracts, making it easier to filter and analyze.

3. Centralized Contract Repository: The platform offers a location for all contracts, simplifying access and management.

Limitations based on the users:

It is focused mainly on the standard clause insertion rather than dynamic content generation.

Users cited how significant legal research capabilities within the platform are not present.

There is no community template library and limited free-form AI drafting capabilities.

For user feedback and detailed reviews on Hyperstart, explore the Hyperstart reviews on G2.

SpotDraft

SpotDraft is a comprehensive system with features designed to optimize the contract management process. It caters to businesses of all sizes and scales accordingly with a pay-as-you-use model. Through AI-led automation, SpotDraft helps in-house legal teams, sales, financial, as well as human resource teams (including external stakeholders) with contract collaboration processes.  

SpotDraft’s AI capabilities are extensive. AI-assisted redlining automates contract reviews and assists in negotiation. It is also equipped with intelligent suggestions and collaborative capabilities across teams. The smart data capture extracts over a thousand types of contract metadata using AI. The VerifAI integration reviews contracts, covering compliance, 15 times faster from directly within Microsoft Word.

Based on user reviews on G2, here are the benefits:

1. Template Management: It offers standardized templates with dropdowns and intake forms.

2. Approval Workflows & Automation: Users appreciate the version history, automated notifications, and approval routing.

3. Intuitive Interface: The UI is clean and easy to use for both legal and non-legal teams.

Limitations based on the users:

1. No Folder Structure: Although users like the centralized repository, it relies on tags, lacking sub-folder support, making searchability a challenge.

2. Reporting Customization is Limited: The dashboard doesn’t offer robust customization for different business needs.

3. Missing Features: Some users feel that advanced bulk signing and integration capabilities are lacking for specific workflows.

Want more insights from real users of SpotDraft? Check out SpotDraft’s reviews on G2

Contractbook

Contractbook is an AI-powered software that centralizes agreements, extracts data, and automates tasks, all using AI. Intelligent automation makes the platform stand out by converting static contracts into dynamic databases.

Contractbook scans and extracts important contract data using AI, and its OCR technology processes uploaded contracts and attachments, allowing documents to be searchable for specific data and variables. Dynamic contract templates, being a promoted feature of Contractbook, include sales & vendor contracts, NDAs, DPAs, and employment contracts with custom data fields.

Like most other contract software, this also has a centralized repository with advanced search and filtering capabilities for quick access.

Based on user reviews on G2, here are the benefits:

1. Customizable Templates: The platform offers flexible and pre-built templates to simplify contract setup and maintain legal compliance.

2. Mobile Signing and reminders: Contractbook sends and allows users to sign contracts on their mobile device it also sends automated reminders for expiration and action items.

3. Positive Pricing feedback: Many users highlight that the pricing meets the robust capabilities that they offer.

Limitations according to the users:
  1. A common complaint is the poor and inflexible customer service of Contractbook where they seem only refer to the terms and conditions.
  2. There are formatting and editor restrictions due to limited styling options and restrictive contract editing features.
  3. A few recurring issues revolve around pre-signing capabilities, primarily the lack of built-in redline tracking, revision history for contract negotiation, weak comment and negotiation tools, and the absence of Word file support.

For user feedback and detailed reviews on Contractbook, explore the G2 reviews of Contractbook.

For a detailed guide on template creation, check out our blog on how to automate template-based document creation: 3 must-try tools revealed.

Implementation Best Practices

There are a few things that need to be noted before implementing a contract automation tool. Below are a few key sequential steps that should not be neglected:

Start with Template Standardization: Developing comprehensive libraries of pre-approved templates and clauses is a key step to easy document generation during usage of the tool.

Configure Intelligent Workflows: The initial setup might take time, but getting the automated approval routing will simplify your job. Focus on contract value, risk level, and organizational requirements.

Integration of Existing Systems: The tool you choose should be able to seamlessly connect to your core business systems like CRP or ERP as well as your legacy system if you have one. Its always better to check the integration capabilities, before choosing a software.

Training: Get your teams and those who will use the system thoroughly trained on how to use the software and its various capabilities. A common issue across such tools is the steep learning curve, its good to get that out of the way.

Monitor and Optimize: The implementation isn’t just the beginning. You have to analyze contract performance metrics continuously to identify areas for improvement and refine the process to meet your specific requirements.

Users generally feel that while ChatGPT can help with initial drafting, it lacks the legal accuracy and customization needed for serious contract work. Most recommend using legal-specific AI tools, which offer better integration, clause libraries, and compliance features. Overall, AI can be fast and simplify parts of the process, but a human legal expert should still finalize the work to ensure legal safety.

If you’re looking for a free AI contract generator that goes beyond basic drafting and offers legal-specific features, Perfect Doc Studio is a strong option to consider.

Perfect Doc Studio offers a practical approach to legal contracts automation, especially ideal for non-technical users, simply because of how easy it is to handle and use. Try Perfect Doc Studio for free! It offers a low-code/no-code solution with data binding features and support for output to Word, HTML, and PDF formats. It adds more power and flexibility by expanding upon an intuitive interface, which makes it a good option for non-developers handling structured documents.

Conclusion:

AI contract generators are transforming how businesses handle contracts, making the process faster and more accurate. While general tools like ChatGPT offer basic drafting, platforms such as Perfect Doc Studio and Juro provide advanced features like AI-powered drafting, smart workflows, CRM integration, compliance support, real-time collaboration, no-code flexibility, and AI-powered risk detection. One of these platforms may be a good starting point if your team is seeking more intelligent ways to manage contracts.

FAQs

An AI Contract Tool is software that uses artificial intelligence to help create, review, and manage contracts faster and more accurately. Instead of spending hours drafting or analyzing legal documents manually, the tool automates repetitive tasks, identifies key clauses, and ensures compliance with legal standards.

The tool speeds up the contract lifecycle by offering ready-made templates, auto-filling details, highlighting risky terms, and even suggesting edits. This eliminates back-and-forth manual work and reduces contract preparation time from days to minutes.

Yes. Most AI contract tools use encryption and secure cloud storage to protect sensitive information. They also follow compliance standards like GDPR or HIPAA (depending on the tool). However, it’s still recommended to have a legal professional review critical contracts.

Absolutely. Small businesses often lack dedicated legal teams, so an AI contract tool helps them generate professional agreements like NDAs, service contracts, or proposals without needing deep legal expertise. It reduces costs while maintaining accuracy and compliance.

Key features include:

● Contract templates and clause libraries
● Automated drafting and review
● Risk detection and compliance checks
● E-signature integration
● Collaboration and tracking dashboards