DocuSign debuts contract-trained AI to explain documents before you sign them

[DragonSlayer101]

In brief: San Francisco – based document management firm DocuSign has unveiled a new AI tool that promises to summarize legal documents in plain English, making it easier to understand complex contracts without digging through a sea of legal jargon. The software also explains key terms and conditions in simple language and answers user queries in a conversational tone.

According to an official press release, the AI-powered eSignature features that make dense legal language easier to understand are built on DocuSign's Intelligent Agreement Management platform, which simplifies complex wording and helps ensure accurate, error-free document preparation.

Unlike most multipurpose AI tools trained on general-purpose large language models, DocuSign's system is powered by an AI engine called Iris, which is purpose-built on contract-specific terminology and designed to deliver more accurate insights into legal documents. The tool can also identify agreement types, verify recipient details, and automatically place signature and information fields within contracts.

In addition, the AI can answer questions about a document's content such as "What happens if I need to cancel?" or "When does this warranty expire?", allowing users to understand the details of an agreement without spending hours deciphering complex legal terminology.

Nearly 75 percent of the 1,000 Americans surveyed by OnePulse last month said they would feel more confident signing legally binding agreements if they could review an AI-powered, plain-English summary of their contracts beforehand. Nearly 60 percent of respondents also admitted to signing contracts without fully understanding them.

Being required to sign agreements without fully comprehending complex terms and conditions reportedly triggered negative emotions in nearly half of respondents, with 29 percent citing frustration and 19 percent admitting they felt anxious about missing important details.

While AI could help address some of these issues, signers should be aware that even the most sophisticated AI tools are prone to hallucinations. Treating AI-generated summaries as definitive interpretations therefore carries significant risk.

AI-generated text may be sufficient for agreeing to an end-user licensing agreement on a new smartphone, but it is no substitute for a qualified lawyer reviewing the fine print of potentially life-altering contracts.

The AI-powered eSignature feature is already available in the US, UK, and Australia. Automated field placement for agreement creation is expected to roll out in the US market "in the coming weeks."

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DocuSign debuts contract-trained AI to explain documents before you sign them

 

[unoficialoficial]

Recently, I had to compose a legal document (a new license) for worldwide use. As it's a serious document, it required significant refinement and scrutiny to address all potential edge cases. I have already submitted it for approval to SPDX, and if it is approved, it will be available there in a few weeks. During this refinement process, I utilized almost all the major AI models (both local and cloud-based) to perform reviews, critiques, and provide scoring for the license.

All these models offered many different legal perspectives, resulting in scores that ranged from 65 to 95. This was concerning even for a text that was carefully written. Imagine, then, the potential confusion or inconsistency that might arise with a loosely written, less explicit legal text.

 

[DrSuess]

"DocuSign debuts contract-trained AI to explain documents before you sign them", what could go wrong with asking AI to explain a contract?

 

[techstrike]

This is the first time I see a real benefit of using AI... really.