Using LLMs to Automate and Audit Business Contracts

This literature review examines the current state of research on the use of Large Language Models (LLMs) for automating and auditing business contracts, with an emphasis on their applications in legal compliance and risk management. By analysing existing studies, the review highlights the capabilities of LLMs in classifying, interpreting, and validating contract clauses, as well as the challenges related to accuracy, data diversity, and integration into legal workflows. The review identifies gaps in knowledge and methodology, such as limited evaluation of multi-jurisdictional adaptability and real-time performance. It also discusses advancements in natural language processing techniques that could improve clause classification precision. The findings suggest that while LLMs hold promise for improving contract analysis efficiency and risk mitigation, further empirical research is needed to validate their effectiveness across diverse legal contexts. This review provides a foundation for future investigations aiming to enhance the deployment of LLMs in legal and compliance settings.