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Talk of AI is on everybody’s lips, and if you haven’t played with ChatGPT yet, you’re missing out on an experience.

I’ve had a play with it, and it’s great for research, and it can give you a solid foundation for content creation. You still need to put your spin and voice on it, though.

I’m concerned, though, that I’ve seen it suggested to small business owners to use it to write their Terms and Conditions (Ts & Cs).

While using AI to generate Ts & Cs for your business may seem like a convenient time and money-saving solution, it is fraught with pitfalls if you’re unfamiliar with contract law.

So, just because you can, doesn’t mean you should.

Here are a few reasons why:

AI has Limited Knowledge

AI can process a vast amount of data and learn from it, but it is not a legal expert. It lacks the specialised knowledge and experience required to draft comprehensive legal documents that protect your business. Trusting the process exclusively to AI could result in a failure to identify potential legal issues or failing to comply with all relevant laws.

Inaccuracy and Inconsistency

Content generated by AI may not always be accurate or consistent, and there is a risk of errors or contradictions. This could result in your Ts & Cs being ambiguous or unenforceable, which could have serious legal consequences.

Lack of Clarity

Your Terms and Conditions establish a legal relationship between you and your customers and should be written in clear, understandable language.

AI-generated documents may use technical jargon or legal language that is difficult for customers to understand. Therefore, customers may not agree to the T&Cs or understand the legal consequences of their actions, causing disputes or misunderstandings.

Not Tailored for Your Business

Every business is unique, and your Ts & Cs should reflect that. AI generates generic language that does not take into account the specific needs and characteristics of your business or customer. You may end up with a one-size-fits-all approach that does not adequately protect your or your client’s interests.

Not Understanding your own Ts & Cs

When using AI to generate your Ts & Cs, there is a risk that it will produce something you don’t understand. You need to be able to explain them to your customers, so how can you do that if you don’t know what things mean? This can result in unintended consequences or legal issues down the line.

AI Learning is Out of Date

The data that ChatGPT was trained on is already out of date. At the time of writing, it has only accessed data up to 2021. That means any law it references may not be the latest version, exposing you to risk.

Legal liability Exposure

You may be exposed to legal liability if your Terms and Conditions are not legally sound or fail to protect your business adequately.

You have no recourse if you’ve relied on Ts & Cs produced by AI and find yourself having to pay out for a liability claim. OpenAI, the creator of ChatGPT, make that very clear in their terms (section 7).

For full disclosure, I must tell you that I used ChatGPT to research this blog. Even the AI says that whilst it can help create a basic, generic template, you should seek the advice of a legal professional to review and modify any contract created using AI.

That being the case, why not go straight to them in the first place?

If you’re looking for some help in drafting, reviewing or updating your Ts & Cs, get in touch with us today.