AI contract review guide

Does it work under Canadian law?

• Governing law and jurisdiction. AI often defaults to a US state. Confirm the contract is governed by the right province and disputes go somewhere sensible.
• US concepts that don't fit. Watch for US-style terms, statutes, and remedies that don't map onto Canadian law.
• Currency, tax, and language. Amounts, HST/GST treatment, and (for Quebec) French-language requirements handled correctly.

Does it actually protect you?

• Limitation of liability. Is the cap real and enforceable, and does it cover the risks that matter? Canadian courts test these clauses closely.
• Indemnities. Who's covering whom, for what — and is it balanced or quietly one-sided?
• Termination and renewal. How each side exits, notice periods, and any auto-renewal that locks you in.

What AI tends to miss

• IP ownership. Who owns what's created — a gap here is common and costly, especially with contractors and software.
• Confidentiality and privacy. Real protection for sensitive information, and compliance with PIPEDA or Quebec Law 25 where personal data is involved.
• Invented or generic clauses. AI can produce plausible-sounding clauses that are wrong, or boilerplate that doesn't fit your deal.
• Consistency. Defined terms, cross-references, and schedules that actually line up — AI drafts often drift.

Before you sign

• Confidentiality of the tool. Don't paste sensitive agreements into a public AI tool — your confidentiality depends on that vendor's terms, not privilege.
• A human read. Have someone who knows the subject read it end to end — and for anything important, a lawyer.
• Know the stakes. The bigger the deal or the risk, the less an unreviewed AI draft is worth.