AI Contract Review in Microsoft Word: Real-Life MSA Example Using Law Insider
In this hands-on module, we demonstrate how to review a real Master Services Agreement (MSA) using the AI Review Tool inside the Law Insider Word Add-In.
This walkthrough is perfect for legal professionals who want to speed up contract review, detect risks faster, and apply structured review standards—all without leaving Microsoft Word.
How to Start an AI-Powered Contract Review
- Open your contract (here, an MSA) in Word.
- Launch the Law Insider Word Add-In.
- Click “Review with AI.”
- Input basic review context:
– Your role (e.g., Customer)
– Specific issues to watch for (e.g., non-solicitation clause)
The AI scans the document in seconds, analyzing structure, language, and risk patterns.
How the AI Review Works
- The tool generates a custom AI Playbook on the fly using general best practices.
- This playbook evaluates whether your contract aligns with standard contract principles.
- Important note: Law Insider does not train AI on your data—your information is never reused, keeping the tool neutral and secure.
What You’ll See in the Output
- A compliance score bar gives a high-level view of how balanced your agreement is.
- Each flagged clause includes:
- Clear explanation of the issue
- Suggested AI-generated language
- Similarity scores based on real-world precedents from the Law Insider contract database
- Options to “Apply” edits or ignore them
Examples:
- Missing payment terms → redline added to specify method
- Vague scope → AI-generated clause + 80% similarity benchmark
You can explore real clause comparisons by clicking “See All” to understand how suggestions align with industry-standard language.
Reusing and Customizing the AI Playbook
After review:
- Your AI-generated playbook is saved to your library
- You can edit the playbook rules to reflect your team’s unique risk appetite
- Choose:
- Redline = AI suggests replacement text
- Suggestion = flag only, no language change
💡 Great for:
- Legal teams setting review guardrails
- Delegating review to sales or procurement
- Customizing review for NDAs, MSAs, or vendor agreements
Enable inline comments to auto-explain redlines within the document.
Why Use AI Review in Word?
- Instant analysis of complex contracts
- No toggling between tools or templates
- Reusable rules for consistency across deals
- Fully editable to match your preferences
Full Transcript
Welcome back.
In this module I’ll be showing you how to review a real contract using the AI review tool inside the Law Insider word add-in.
We’ll be working with the master services agreement, slightly one-sided but realistic.
Let’s run an AI review and see what it finds.
Okay so I’ve opened the MSA word and the Law Insider add-in is already loaded in the sidebar.
To start the review I’ll click review with AI.
In the next screen the tool is asking me for some information about my role in the agreement and any specific concerns I have.
Here I’m telling it that I’m the customer and that the concern I have is around the existence of a non-solicitation clause.
I then click start review and let the tool scan the entire document.
It takes just a few seconds to analyze the structure, clauses and risk areas.
Once the review is complete I’m going to be seeing a list of flagged issues organized by clause type.
It’s important to note that what the tool is doing here is creating an AI generated playbook against which it will review the agreement.
A playbook is a set of rules against which the AI will assess the agreement to give you an overview as to whether those rules are complied with or not.
It generates those rules based on its own knowledge and general best practice.
We do not train our AI with your data so the tool is agnostic of your own preferences or risk appetite so just keep that in mind when you’re using this feature.
Now let’s take a look at the output.
At the top you’ll see a bar that shows you at a glimpse how compliant the agreement is with the tool’s AI generated playbook.
This is a good barometer for how balanced agreement is or how it fares against the criteria you shared with it around your role and specific concerns.
Now let’s go through some of the areas it’s flagging.
As you’ll see the first point is around the scope and it being vague.
What it’s also doing is it’s flagging that something that it was expecting to see is missing and so what it’s doing is it’s created language that you can include into the agreement to plug that gap.
This language here is AI generated but what it’s also doing is it’s taking the AI generated language and it’s comparing it to the millions of clauses that exist in the law insider database and what it’s telling us here is that there is a similarity score of 80% which means that there’s precedent for the AI generated language in terms of substance.
If you wanted to dig deeper you can click on see all and see the other clauses that the tool is using to benchmark the AI generated language against.
Now what you’ll also see is that the tool is flagging where some language that exists in the agreement does not comply with the principle that the AI thinks is balanced.
So for example here it’s telling us that the payment method is not specified and it’s suggesting a red line to make that a bit clearer and if you click on apply it will make the change directly in the agreement.
You can go through all the suggestions it’s making and either accept the suggestions or ignore them and then what you’ll also find is that this AI generated playbook will now live in your library so if you wanted to reuse those rules to review future agreements then you can do that.
If you go into manage playbooks which is in your home screen you’ll find the AI generated playbook and then what you can also do is go into each of the rules that the playbook has created and amend those rules to better align them with your own risk appetite.
You can also choose whether the tool should be flagging as a red line or a suggestion.
The difference between a red line as a suggestion is that the red line will suggest alternative language to bring the language in the agreement into line with your principal whereas a suggestion is just a flag so it will just tell you where there’s an inconsistency or where there’s something that you need to be looking at in more detail and this is perfect when you’re delegating the review to other people who are not in the legal team and who you do not want to be redlining the agreement directly and you can give them some guard rails around when they need to escalate to you and red lines perfect for when you’re just ready to edit an agreement.
You can also click on enable changes here, enable comments sorry, where you can ask the tool to automatically include a comment that explains the rationale for the change whenever you choose a red line.
You can save your changes and go through each of the rules to tailor them to better align with your risk appetite and then you can reuse that playbook as you wish and that’s AI review.
Thanks for watching.