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AI is revolutionizing the legal industry. In today’s world, AI for legal documentation tools is reshaping the legal landscape — making contract creation, NDAs, wills, and business agreements faster, safer, and more affordable.
But if there are hundreds of them in retail stores, how do you choose the best one?
In this guide, we list the best AI-powered legal software that lawyers trust and that helps them keep data privacy and productivity in mind.
Freelancers, small-business owners, and even legal professionals: Read up on the best AI-run legal document generators that do the job, and find out when it’s still worth calling a lawyer.
| Warning: This article is researched and includes information provided by legal professionals, but it is not intended as legal advice. |
Is It Legal To Use AI Tools to Generate Legal Documents?
Yes, you can legally create your own authorized digital signature using your computer and many other IT tools; however, it depends on where and how you use them. In most places, people can use AI to help them draft simple legal documents.
But if the tool offers custom legal advice without a licensed attorney, it could be in violation of laws against the unauthorized practice of law.
For straightforward contracts, NDAs, or wills, AI-based tools may save you time and money, but most legal matters are best reviewed by a lawyer to guarantee all is in compliance and is accurate.
How We Tested These Legal AI Tools
Before you trust AI with important documents, know our testing process:
- Compared outputs against templates from top law firms
- Had attorneys review AI-generated clauses for hidden risks
- Tested data privacy (many “free” tools sell your contract data)
- Timed document creation vs. manual drafting
Spoiler: The most useful tool saved a real estate law office 23 hours a month.
Top 8 AI Tools for Generating Legal Documents in 2025
Here are some of the best AI tools for generating Legal documents:
1. LawGeex (Best for Business Contracts) ★★★★★
An AI-based contract review tool that makes it easy for businesses to write NDAs, service agreements, and employment contracts in plain language.
Best For: Legal teams, HR departments, procurement managers, and business owners.
Key Features:
- Automatic clause flagging for negotiation red flags
- Supports standard legal document templates
- AI-based risk scoring and clause suggestions
- Collaboration tools for internal legal reviews
Why It Stands Out:
Lawgeex is highly accurate (rated 86% as accurate as junior lawyers), as rated by legal departments. It streamlines mundane contracts and eliminates legal overhead.
2. LegalZoom AI (Best for Startups) ★★★★☆
LegalZoom AI is a legal tool powered by AI was created for startups and small businesses to handle their formation and compliance needs.
Best For: Startup founders, entrepreneurs, and small business owners.
Key Features:
- Custom LLC and incorporation documents
- AI-generated compliance checklists
- Real-time state-specific updates
- 2025 update: Integration with Clio for law firms
Why It Stands Out:
Celebrities are easy and affordable, with your first document free and easy-to-use tools for small businesses.
3. ChatGPT-4 (With Legal Plugins) ★★★★☆
ChatGPT is a powerful language model that can draft legal documents with specialized plugins like “Legal Document Assistant.”
Best For: Freelancers, general users, and legal professionals need quick legal drafts.
Key Features:
- Customizable document creation prompts
- Legal plugin integrations
- Drafts for multiple jurisdictions
- Option to tag for attorney review
Why It Stands Out:
Flexibility and accessibility. With natural language inputs, you can produce various types of documents – perfect for rapid prototyping with a lawyer looking over you.
4. Casetext CoCounsel (Best for Research) ★★★★☆
Casetext CoCounsel enables legal professionals to get instantaneous case law suggestions and document analysis.
Best For: Law students, paralegals, and attorneys are involved in litigation.
Key Features:
- Real-time case law citations
- Legal research summaries
- Draft review suggestions
- Free 14-day trial access
Why It Stands Out:
Fast, accurate legal research companion, AI for quick consultation. Saves hours on case prep and ensures compliance.
5. DocuSign + AI (Best for E-Signatures) ★★★☆☆
AI-driven legal document review is done on an e-signature platform.
Best For: Business professionals, HR departments, and contract managers.
Key Features:
- Smart clause suggestions before signing
- Document completeness check
- Audit trails and compliance tracking
- Integrates with Salesforce, Google Drive, and more
Why It Stands Out:
DocuSign’s AI update makes it easier to discover missing legal clauses (like non-competes in an NDA), which leads to fewer human oversight errors.
6. Willful (Best for Estate Planning) ★★★★☆
Willful is an estate planning platform that employs AI to produce legally valid wills, power of attorney, and other personal legal documents.
Best For: Individuals planning their estate or managing inheritance matters.
Key Features:
- Auto-generates state-compliant wills
- Power of attorney and healthcare directives
- Scenario-based prompts for life events
- Real-time legal compliance validation
Why It Stands Out:
Simple, and comforting, helped avoid a $200K estate dispute, demonstrating it’s real-world, legal battle-tested.
7. LexisNexis AI (For Law Firms) ★★★★★
Top-tier law firms use LexisNexis AI-powered legal research and drafting solution.
Best For: Large law firms, experienced attorneys, and corporate legal teams.
Key Features:
- Deep legal database search
- Predictive legal analytics
- Case law summaries with citation tracking
- Client matter management tools
Why It Stands Out:
The gold standard is already employed at 72% of AmLaw 100 firms. It is expensive, but its time savings more than justify the outlay for serious legal users.
8. Ironclad AI (Best for Contract Lifecycle Management) ★★★★☆
Ironclad AI is the engine for digital contracting, and it’s built to help legal teams optimize all facets of the contracting process — from creation and collaboration to execution and storage.
It is powered by advanced AI technology to analyze risk, suggest edits, and maintain compliance in all legal documents.
Best For: In-house legal departments, corporate legal teams, and enterprise-level businesses.
Key Features:
- AI-assisted contract drafting and risk detection
- Real-time team collaboration and version control
- Clause library and smart templates for faster creation
- Seamless integrations with Salesforce, Google Drive, and more
- Automated workflows and audit trails for compliance
Why It Stands Out:
IRONCLAD is used by some of the world’s leading brands, such as L’Oréal, Mastercard, and others, for its clean, intuitive UI combined with powerful automation.
Its AI engine sees and understands context within a few days of training, accelerating legal workflows by up to 80% and minimizing errors and regulatory risk. It becomes a must-have for any modern legal ops team.
When Not to Use Legal AI?
These types of documents will always require a human attorney:
- Prenuptial agreements
- Class action filings
- Anything involving minors
- Cross-border contracts
How to Use AI Tools Safely To Draft Legal Documents
- The 15-Minute Rule: If an AI-generated draft requires>15 minutes to verify, just pay the lawyer.
- Metadata Danger: Scrub docs with Metadata Assistant ($5/tool) before sharing.
- Version Control: Monitor AI vs. human-edited drafts with Clio Manage.
| Note: If you’re a recent law graduate but your application keeps getting rejected, it might be due to a poorly structured resume. You can use these AI tools specifically designed for resume building to improve your chances of getting selected. |
People Also Ask: FAQs
Q: Can AI-generated documents hold up in court?
A: Yes, if they’re:
- Reviewed by counsel
- Tailored to your jurisdiction
- Properly executed (notarization, etc.)
Q: What’s the biggest legal AI risk?
A: Outdated clauses. Always check for 2025 law changes.
Q: What is the best free option?
A: ChatGPT + free templates from your state bar association.
Conclusion
If you’re a startup founder, solo practitioner, or time-crunched corporate team, then these AI legal tools will enable you to become smart, fast, and affordable when it comes to contract creation, compliance, research, and estate planning.
From LawGeex’s clause-spotting brilliance to ChatGPT’s custom drafting power, each platform helps shrink time, costs, and risk. Just don’t forget, AI is a succedaneum, not a substitute for legal review. Use it to work smarter, not just solo.
