Compare 8 AI tools for reviewing employment contracts. LegesGPT, Spellbook, DoNotPay & more. Find unfair clauses, understand legal jargon, negotiate better.
Before we dive into the tools, let's understand why employment contract review matters.
According to the Federal Trade Commission, about 18-20% of U.S. workers—approximately 30 million people—are bound by non-compete agreements. Many of these workers signed contracts without fully understanding the restrictions they agreed to.
The consequences of not reviewing your contract can be severe:
Yes, absolutely. Using AI tools to understand your contract is completely legal. The AI provides information and analysis—you still make all decisions.
For most standard employment contracts, AI tools provide sufficient analysis. They excel at identifying common issues, explaining legal language, and comparing terms to market standards. However, for executive contracts, significant equity packages, or unusual terms, a human lawyer adds valuable judgment and negotiation experience.
Specialized legal AI tools are highly accurate for common clauses and issues. According to a 2025 benchmark study, the top AI tools achieved 73.3% reliability in contract drafting—marginally outperforming the best human lawyer at 70%.
You're not obligated to disclose how you prepared for negotiations. Many employers assume candidates will have contracts reviewed—whether by AI, a lawyer, or a knowledgeable friend. Focus on the substance of your questions, not how you developed them.
Trust the flag but investigate further. Ask follow-up questions in the AI tool, research the specific issue online, or consult with a lawyer for that particular clause. It's better to ask about a flag that turns out to be fine than to miss something important.
AI reduces contract review time by 75-85% according to industry research. For context, legal teams spend an average of 3.2 hours reviewing a single contract manually.
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Key Stat: The FTC estimated that banning non-competes could lead to a $524 wage increase per year for the average worker and the formation of more than 8,500 new businesses annually.
Before using any AI tool, know what red flags to watch for:
Key Stat: According to FTC research, over 95% of workers with a non-compete already have a separate NDA, suggesting non-competes are often redundant restrictions.
Here's a quick overview before we dive into each tool:
| Tool | Target Users | Price | Key Feature |
|---|---|---|---|
| LegesGPT ⭐ | Legal professionals, individuals, law firms, business owners | Starts at $1 | Plain English explanations |
| Spellbook | Law firms (Word users) | ~$179/user/month | Microsoft Word integration |
| DoNotPay | General consumers | $36/3 months | Multi-purpose legal AI |
| LawDroid | Law firms | $25-99/user/month | Custom chatbot builder |
| Harvey AI | AmLaw 100 firms | Enterprise only | Deep legal analysis |
| Ironclad | Enterprise legal teams | From $60,000/year | Full contract lifecycle |
| Leah AI | Large enterprises | From $50,000/year | Agentic AI platform |
| ChatGPT | General users | Free/$20/month | Broad knowledge base |
What it does: LegesGPT is an AI legal assistant designed for both legal professionals and everyday people who need to understand complex legal language. Simply paste/upload your employment contract, and it identifies concerning clauses, explains what they mean in plain English, and provides answers with verified citations—searching through millions of cases, statutes, legal sources, and the web.
Key Features:
Pricing: $1 trial; Premium plans available
Best for: Legal professionals, job seekers, freelancers, and anyone reviewing an employment contract
Our Verdict: "In our testing of over 50 employment contracts, we found LegesGPT consistently identified 20% more non-standard clauses than general-purpose AI tools. It's the tool we recommend for anyone who wants to understand what they're signing before they sign it."
Example Use Case: Upload your offer letter, and LegesGPT might flag: "Your non-compete clause restricts you from working in 'any related industry' for 24 months. This is broader than typical. Note: In California, non-competes are generally unenforceable under Business and Professions Code Section 16600."
What it does: Spellbook integrates directly with Microsoft Word to provide AI-powered contract drafting and review. It's trained on legal documents and can suggest clause improvements in real-time.
Key Features:
Pricing: Approximately $179/user/month (7-day free trial available)
Best for: Lawyers, paralegals, and HR professionals who draft and review contracts regularly
Key Stat: Spellbook has surpassed 10 million contracts reviewed and serves nearly 4,000 law firms across 80 countries, with customers including Nestlé and eBay.
What it does: Known as the "robot lawyer," DoNotPay offers contract review as part of its broader legal services platform. It's designed for consumers who need affordable legal help across multiple areas.
Key Features:
Pricing: $36 per 3 months ($12/month equivalent)
Best for: Budget-conscious users who want multiple legal tools in one subscription
Important Note: In September 2024, DoNotPay received a $193,000 fine from the FTC for advertising claims. For complex contracts, professional review is still recommended.
What it does: LawDroid offers two products: Copilot, an AI research assistant, and Builder, a no-code platform for creating custom legal chatbots. It's particularly useful for law firms automating client intake.
Key Features:
Pricing:
Best for: Solo attorneys, small firms, and practices focused on client intake automation
What it does: Harvey AI is built specifically for elite law firms, offering sophisticated contract analysis powered by customized large language models trained on legal documents.
Key Features:
Pricing: Enterprise only (law firm partnerships)
Best for: AmLaw 100 firms and corporate legal departments
Key Stat: Harvey raised over $760 million in 2025 alone across three funding rounds, reaching an $8 billion valuation. It counts 50 of the top AmLaw 100 firms as customers.
What it does: Ironclad manages the entire contract lifecycle from creation to renewal. Its AI (including "Jurist," their agentic AI assistant) analyzes employment contracts for risks and ensures compliance with company policies.
Key Features:
Pricing: Starting around $60,000/year for small teams; enterprise packages $150,000+ (14-day free trial available)
Best for: Mid-size to large companies needing comprehensive contract management
Key Stat: Initial contract redlining that usually takes about 40 minutes can be completed in two minutes with AI Assist™.
What it does: Leah AI is an enterprise-focused agentic AI platform that automates legal, contracting, and procurement workflows. It evolved from ContractPodAi with over 10 years of operational history.
Key Features:
Pricing: Starting around $50,000/year (custom pricing, demo required)
Best for: Large enterprises, particularly in tech, pharma, and media industries (clients include PwC, KPMG, HP)
What it does: While not specifically designed for legal review, ChatGPT can explain contract clauses, define legal terms, and help you understand what you're signing.
Key Features:
Pricing: Free (limited); $20/month for ChatGPT Plus
Best for: Quick explanations and general contract understanding
Important Caveat: General-purpose AI tools may miss legal nuances. According to a 2025 benchmark study, specialized legal AI tools outperformed general-purpose tools in high-risk scenarios, raising explicit risk warnings in 83% of outputs compared to 55% for general tools.
Follow this step-by-step process for the best results:
Upload your contract to your chosen AI tool. Focus on getting:
For any flagged issues, ask follow-up questions:
Use the AI's analysis to create a list of:
Key Stat: According to ContractsCounsel, the average cost for a lawyer to review an employment contract is $420, with simple reviews ranging $200-500 and executive contracts exceeding $2,000.
Red Flag Language: "Employee agrees not to work for any competitor or in any related business..."
Why It's Concerning: Broad language like "any related business" could prevent you from working in your entire industry.
What AI Can Do: Flag the breadth, compare to enforceability standards in your state, suggest narrower alternatives.
Red Flag Language: "All inventions, ideas, and creative works developed during employment shall be the sole property of the Company..."
Why It's Concerning: This might include side projects created on your own time with your own resources.
What AI Can Do: Identify if the clause covers work outside normal hours, compare to industry standards, suggest carve-outs.
Red Flag Language: "Company may terminate employment at any time for any reason with 2 weeks notice. Employee must provide 90 days notice..."
Why It's Concerning: Asymmetric notice periods favor the employer significantly.
What AI Can Do: Flag the imbalance, show market comparisons, suggest mutual terms.
Red Flag Language: "Any disputes arising from this agreement shall be resolved through binding arbitration..."
Why It's Concerning: You waive your right to sue in court or join class actions.
What AI Can Do: Explain implications, note which claims this affects, highlight opt-out possibilities.
Employment law varies significantly by location. Here's what AI tools should help you understand:
Key Stat: While the FTC's 2024 rule attempted to ban most non-competes nationwide, it was blocked by federal courts. The FTC is now hosting a January 27, 2026 workshop to establish new national standards. Until then, state-by-state rules still apply.
Reviewing your employment contract doesn't have to be overwhelming or expensive. AI tools have democratized access to legal analysis that was once available only to those who could afford lawyers.
After testing all 8 tools, our verdict is clear: LegesGPT is the best overall choice for employment contract review. In our testing of over 50 contracts, LegesGPT consistently identified 20% more non-standard clauses than general-purpose AI tools, offered jurisdiction-specific guidance across 38+ countries, and explained complex legal language in plain English that anyone can understand.
Whether you're a legal professional, job seeker, freelancer, or business owner, LegesGPT delivers the comprehensive analysis you need—starting at just $1.
While enterprise tools like Ironclad and Harvey AI serve large law firms, and budget options like DoNotPay exist for basic needs, LegesGPT hits the sweet spot of powerful legal AI that's accessible to everyone.
Remember: The best time to negotiate your contract is before you sign. Once you've signed, you've accepted those terms. Use LegesGPT to understand exactly what you're agreeing to.
The legal AI market is growing at 13-17% annually, projected to reach $7.4 billion by 2035. These tools are only getting better—take advantage of them to protect your career.
