AI is reshaping contract review, and employment agreements are a prime example of where the technology excels. Legal teams faced with high volumes of agreements—spanning offer letters, executive contracts, and severance terms—are turning to AI to handle the repetitive first pass. This frees attorneys to focus on judgment-intensive tasks without compromising review standards.
Employment contract review typically involves verifying provisions like compensation, restrictive covenants, intellectual property, and dispute resolution. These documents are governed by clear legal standards and company playbooks, making them a strong fit for AI-driven workflows. According to the 2026 AI in Professional Services Report by Thomson Reuters, 74% of legal professionals now use AI for document review, with contract drafting and analysis among the top use cases.
AI tools like Harvey streamline this process by extracting key terms, checking for consistency, and flagging potential risks. For example, AI can ensure salary and equity terms are consistent across an agreement and its side letters or surface overly broad non-compete clauses for review. Importantly, AI tools don't replace the attorney's judgment—they optimize where that judgment is applied.
When reviewing employment agreements with AI, legal teams should focus on:
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