AI contract review uses NLP models trained to identify, extract, and classify clauses across a defined set of clause types relevant to the contract category being reviewed: for commercial contracts, this includes limitation of liability clauses, indemnity provisions, intellectual property ownership and licensing terms, termination rights, governing law and jurisdiction, confidentiality obligations, payment terms, and warranty and representation scope. For employment contracts, the relevant clause types differ; for real estate leases, they differ again. The system reads a contract document and produces a clause-by-clause extraction report: each identified clause is extracted, classified, and, where you have a standard or preferred position, compared against that standard to flag deviations. A limitation of liability clause that is uncapped, mutual rather than unilateral, or that excludes carve-outs your standard requires gets flagged for attorney attention. Clauses that conform to your standard position are noted but do not require detailed review. The output is a structured review memo that the reviewing attorney can act on directly, rather than a document the attorney must read from cover to cover before any analysis can begin. For high-volume contract review, an M&A data room, a supplier contract renewal programme, or a lease portfolio review, the time saving is substantial: what takes an associate several hours per contract can be completed in minutes. The attorney's judgment is applied to the issues the system surfaces, not to the initial pass that identifies them. We map your standard positions and priority clause types in discovery before building the extraction model.