The Law To Know

Module 1

What the tools do and how they fail

By the end of this module you can name the main jobs legal AI tools do, list the typical ways each goes wrong, check an output against its source line by line, and say why a confident, fluent answer is not evidence that it is right.

Part 1. The lecture

The five jobs

Tools sold to legal teams do a handful of jobs, inside the programs lawyers already use:

  1. Draft a document from an approved template and a few instructions.
  2. Review a contract against a set of preferred positions and suggest changes, often shown as tracked changes.
  3. Extract facts, such as parties, dates, amounts and obligations, from one document or thousands.
  4. Summarise a document, a set of emails, or a whole matter.
  5. Research: find and explain law, precedent or market terms.

Their makers report speed, and often a measure of use, such as the share of suggestions that lawyers keep. That is useful, and it is not the same as being right. This course is about the difference.

How they fail

Errors fall into a short list. Learn it, and you will know what to look for:

  • Wrong figure. 60 days becomes 90. An extra zero turns USD 1,000,000 into USD 10,000,000.
  • Wrong unit. 1.5% per month becomes 1.5% per year. One word, opposite meaning.
  • Wrong place or law. The courts of England become the courts of New York.
  • Wrong party. The Supplier’s duty is given to the Client, or a company is called Ltd in one place and Inc. in another.
  • Wrong date. Counting days backwards from a deadline and landing two days off.
  • Invented term. A clause that sounds standard appears in the output but is nowhere in the source.
  • Omission. The carve-out, exception or condition that mattered most is left out, and the rest reads smoothly.

Two more failures are about behaviour, not text: a tool that agrees with whatever you suggest, and a tool that is used with a client’s confidential material without anyone checking what it stores.

Why fluent is not the same as right

A wrong output rarely looks wrong. It is well written, confident and neatly formatted. A human error often shows in clumsy wording. A tool’s error does not. So you cannot judge a summary by how it reads. You judge it by matching each claim to a line of the source.

A simple checking method

  1. Go claim by claim. For each sentence in the output, find the line in the source that supports it. No line, no claim.
  2. Re-check every number, unit, name and date yourself, and recompute any date.
  3. Look for what is not there. Which important terms in the source do not appear in the output?
  4. Write down what you found, including what was right. The record is how you learn how reliable the tool is (Modules 2 to 4).

Who is responsible

The lawyer. Professional responsibility does not move to the software. If a wrong summary reaches the client, the lawyer who relied on it and sent it is answerable. A tool is an assistant that must be supervised, like a junior who works very fast and never admits to doubt.

Common mistakes

  • Reading the output for sense instead of checking it against the source.
  • Checking the first paragraph carefully and the rest lightly.
  • Not looking for omissions.
  • Trusting a date or sum because it was formatted neatly.
  • Pasting a confidential document into a tool without checking where it goes.

Part 2. Lab: Find the Error

Three exercises. In each, click the lines of the tool’s output that do not match the source, then check. You will see which errors you found and which you missed. There is also a question about what is left out.

Exercise 1: a summary of a services agreement

A tool was asked to summarise this agreement for the client. Click every line of the summary that does not match the source.

The source

  • Services Agreement between Alderwick Exports (the Client) and Brightway Freight Ltd (the Supplier).
  • 1. Term. Twelve months from 1 March 2026. The agreement renews automatically for further periods of twelve months unless either party gives at least 60 days' written notice before the end of the term.
  • 2. Fees. USD 4,000 per month, payable within 30 days of the date of invoice.
  • 3. Late payment. Interest at 1.5% per month on any overdue amount.
  • 4. Liability. Each party's total liability is limited to the fees paid in the preceding twelve months. Nothing limits liability for death, personal injury or fraud.
  • 5. Governing law and courts. The laws of England and Wales. The courts of England have exclusive jurisdiction.

The tool’s output

Exercise 2: drafting from an approved template

A tool filled the firm's approved supply template using these instructions. Click every line of the draft that departs from the instructions or the template.

The source

  • Instructions: Supplier is Brightway Freight Ltd, a company registered in England. Client is Alderwick Exports. Price is USD 4,000 per month. Payment within 30 days. Governing law: England and Wales.
  • Template notes: the template includes (a) a data protection clause that must always be kept and (b) a limit on liability for each party. No exclusivity clause is in the template, and none was requested.

The tool’s output

Exercise 3: extracting obligations and dates

A tool listed the obligations in this agreement. Click every line of the list that is wrong.

The source

  • Agreement dated 1 March 2026. Term: twelve months, ending 28 February 2027.
  • A. The Supplier shall deliver the monthly freight report by the fifth day of each month.
  • B. The Client shall pay each invoice within 30 days of the invoice date.
  • C. Either party may give notice not to renew at least 60 days before the end of the term.
  • D. The Supplier shall maintain public liability insurance of at least USD 1,000,000 throughout the term.
  • E. The Supplier shall notify the Client of any data breach within 48 hours of becoming aware of it.

The tool’s output

Part 3. Check your understanding

Ten questions drawn from a larger pool. In this pilot your score is shown but not saved.

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This course teaches how to test and supervise tools, using invented documents, fictional parties and made-up tool outputs. No real tool is run, and nothing here is legal advice. Never paste a real client’s confidential material into a public tool.