DIY Use Case #2: Compare NDAs
When it comes to services agreements or NDAs, going back and forth on contract terms can take days—if not weeks. Legal teams, revisions, redlines, negotiations… it’s a lot.
But what if AI could get you 80% of the way there in just a few minutes?
Here’s how today’s AI tools—like ChatGPT-5—are helping businesses instantly compare contracts, identify key differences, and even generate professional, persuasive responses to get alignment faster.
Step 1: Upload Both Contracts and Ask for a Comparison
Let’s say a prospect (we’ll call them Acme) sends over their NDA, and you have your own mutual NDA template. Instead of reviewing them line-by-line, you can just tell ChatGPT:
“Act like a business attorney barred in Louisiana and show me the material differences between these two NDAs.”
Boom. In seconds, the AI will parse both documents—analyzing each clause and section—and deliver a side-by-side breakdown of what’s different.
Step 2: Get Context, Not Just Redlines
Redlining is helpful, but often it’s more useful to understand why something is different and how it affects you.
In this case, the AI pointed out that:
- Acme’s NDA is significantly more restrictive toward the receiving party.
- It includes indefinite survival clauses (which may not be reasonable).
- Liquidated damages of $500K per breach (possibly unenforceable).
- A non-solicitation clause—unusual in a standard NDA.
- No allowance for residual knowledge—a big red flag for service providers.
Best of all, it even provides a bottom-line summary to help you decide whether this is a dealbreaker or a negotiable point.
Step 3: Take Action—Professionally
Once you know what’s different, you have options. You could ask for a redline… or go one step better.
Just say:
“Draft a letter to Acme explaining the key items we’d like to change, why they’re either more balanced or more in line with industry standards.”
The result?
A professional, well-structured response letter with:
- A friendly intro paragraph focused on collaboration and industry norms.
- A detailed, bullet-by-bullet explanation comparing both versions.
- Polite justification for each proposed change—framing them as reasonable and mutually beneficial.
You don’t even have to fix typos in your prompt—AI understands the intent of what you’re asking. One small mistake (“rain” instead of “change”) didn’t derail the output—it still delivered exactly what was needed.
Step 4: Save Time, Avoid Headaches
Negotiating contracts is necessary—but it doesn’t need to start with a phone call or a 20-hour legal review.
With AI, you can:
- Identify material differences in seconds
- Avoid legal pitfalls (like overly punitive clauses)
- Professionally communicate adjustments before lawyers even enter the room
- Save time and reduce friction in the sales or onboarding process
Final Thoughts: Don’t Skip the Lawyer—But Let AI Do the Heavy Lifting First
Of course, legal agreements should always be reviewed by qualified attorneys. But that doesn’t mean you can’t use AI to do your homework first.
By using AI to compare documents, understand risk, and frame reasonable revisions, you show up to the negotiation table more prepared and more persuasive.
And that, in business, is everything.