Docusign is introducing new artificial intelligence tools to make contracts more comprehensible and streamline the signing process for its vast user base. This innovation, highlighted recently by Fast Company, allows individuals to quickly grasp key terms and ask direct questions about agreements, aiming to foster greater trust and efficiency in digital transactions.
With millions of contracts signed daily, the complexity of legal jargon often leaves individuals feeling uncertain about what they are committing to. This new functionality addresses a critical pain point, especially for consumer agreements like leases or purchase contracts, where understanding cancellation policies, hidden fees, or warranty details can be challenging.
A recent Docusign survey revealed that nearly 75% of contract signers would feel more confident with an AI-generated plain-English summary. This statistic underscores a significant market demand for tools that demystify legal documents, moving beyond traditional methods that often require extensive legal review or personal interpretation.
How Docusign AI enhances understanding and trust
Mangesh Bhandarkar, GVP of product management at Docusign, emphasized the core purpose of these AI tools: to provide signers with a heightened level of trust and understanding. He stated, ‘The whole purpose of this is to allow and provide a level of trust to the signer so that they understand what is it that they’re signing,’ facilitating a quicker, more informed signature process.
During a demonstration for Fast Company, Bhandarkar showcased the AI’s ability to summarize a residential lease. The system automatically extracted vital information such as the rental period, monthly rent, and responsibilities for utilities, providing a clear overview. It also answered specific questions, like those about pet fees, by linking directly to the relevant sections within the document itself.
This targeted approach aims to mitigate common issues associated with general-purpose AI, like ‘hallucinations’ or incorrect information. Bhandarkar affirmed the company’s confidence in its Iris AI system, which has been specifically trained on Docusign’s vast dataset of written agreements. This specialized training ensures accuracy and provides in-document citations, preventing the generation of unverified content.
Navigating AI’s role in legal document review
While AI’s application in the legal field has faced scrutiny due to instances of incorrect answers in legal research, as explored by publications like the ABA Journal, Docusign differentiates its offering. The company clarifies that its AI does not provide formal legal advice, nor is it a substitute for a thorough review by a human or legal professional. Instead, it serves as an aid for better and quicker comprehension.
The goal is to empower users with relevant data to make informed decisions about the actions they are taking, rather than replacing the need for due diligence. This careful positioning acknowledges the ongoing debate around AI ethics and reliability in sensitive areas like legal documentation, ensuring responsible innovation.
Many users already turn to general AI tools like ChatGPT for help with understanding contracts. Docusign’s integrated, purpose-built AI offers a more reliable and convenient solution, optimized specifically for contract analysis within the platform where agreements are already reviewed and signed. This could set a new standard for digital agreement platforms.
Docusign’s foray into AI-powered contract understanding represents a significant step towards demystifying legal agreements for a global audience. By enhancing clarity and fostering trust, these tools could fundamentally reshape how individuals interact with important documents, making legal processes more accessible and less intimidating. The future of digital agreements will likely see increasing integration of intelligent systems designed to empower users with knowledge and confidence.
