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Quickly identify risky clauses in a contract with Kutools AI in Word

AuthorAmanda LiLast modified

Contract reviews are time-consuming and error-prone—especially when you’re not a legal expert or when deadlines are tight. Missing a single risky clause can lead to unexpected costs, legal disputes, or unfavorable obligations.

Kutools AI Contract Review gives you an instant risk overview: clear explanations in the Risk Description, practical guidance in the Revision Suggestion, and ready-to-use wording in the Suggested Text. It highlights issues exactly where they occur in the document, so you can immediately see the problematic language in context, understand its impact, and decide how to respond—helping you make faster, safer, and more confident decisions directly in Word.

AI Contract Review pane opened from the Kutools tab in Word

Why use Kutools for Word’s AI Contract Review

  • 🚀 Review contracts in minutes, not hours
    Automatically scan your contract, pinpoint risky clauses, and understand the issues instantly—no manual reading or line-by-line checking required.
  • 🔍 Analyze contracts from your side of the table
    Switch instantly between Party A, Party B, or a neutral perspective. The AI adjusts its risk analysis based on who you are and how detailed you want the review to be.
  • 🎯 See risks exactly where they occur
    Risky clauses are highlighted directly in the document with an orange underline, so you immediately know what is risky and where to focus.
  • 🧠 Get ready-to-use revision suggestions
    Each risk comes with a clear explanation, a practical revision suggestion, and safer replacement text—no legal drafting experience needed.
  • Fix issues with one click
    Insert suggestions, replace risky clauses, or dismiss items instantly. For long contracts, handle everything at once using batch insert or batch replace.
  • 🧩 Work without leaving Word
    Review results appear in a side pane and a floating panel right inside Word, so you can review and revise without switching tools or breaking your workflow.
  • 🎨 Clearly separate AI suggestions from original text
    Customize formatting for inserted content to make AI-generated text easy to identify, review, and discuss.
  • 🔁 Refine results until they’re right
    Not satisfied with a suggestion? Regenerate the risk explanation or revision text individually until it fits your needs.
  • 💾 Never lose your review progress
    Close Word anytime and resume later—your analysis and suggestions are saved automatically.

How to quickly identify risky clauses in a contract using Kutools for Word

Follow the steps below to scan your contract, highlight risky clauses, and apply AI-powered suggestions directly in Word.

Step 1: Prepare and start the contract analysis

Open the Word document that contains your contract, then do the following:

  1. Go to the Kutools tab, and in the Legal group, click AI Contract Review.
    AI Contract Review option on the Kutools tab in Word
  2. The AI Contract Review pane will open on the right side of Word. Configure the review options in the pane:
    1. Review position: Choose Party A, Party B, or Neutral.
    2. Precision level: Select Standard, Detailed, or Comprehensive.
    3. Additional requirement: If needed, select an additional requirement from the drop-down list, such as US Law Review. Otherwise, you can skip this step. Want to edit or add your own additional requirements?
      AI Contract Review pane
  3. Start the analysis by clicking one of the available buttons:
    • Analyze selected content
    • Analyze current paragraph
    • Analyze entire document

Tip: Make sure you have an AI key to use this feature. Need help getting an AI key? Click here to learn how to get your OpenAI API key, or click here to learn how to get a KutoolsAI key and enjoy 100 free uses of all AI tools with no restrictions.

Step 2: Review and handle identified risks

After the analysis is complete:

  • All detected risks are listed in the AI Contract Review pane, each with a clear Risk Description, a practical Revision Suggestion, and ready-to-use Suggested Text.
  • The corresponding clauses in the document are automatically highlighted with an orange underline.
  • The total number of identified risks is displayed at the bottom of the pane.
    AI Contract Review pane with completed analysis

Click any risk item in the pane, and Word will instantly jump to the related clause in the document. For each risk, you can choose one of the following actions:

Tips:
  • Clicking Insert, Replace, or Dismiss marks the risk as handled, and it will disappear from the AI Contract Review pane.
  • Use Replace for quick cleanup, and Insert if you want to review or negotiate the suggested wording later.

Note: When you click a risky clause in the document, a Floating Panel appears. The Floating Panel shows the same content as the corresponding item in the AI Contract Review pane and allows you to quickly review and handle the risk without switching focus back to the pane. Want to disable the floating review panel?

Tips for using Kutools' AI Contract Review

The tips below help you customize how AI Contract Review works for your needs, refine analysis results, control how suggestions are inserted, manage review tools efficiently, and ensure your document is clean and ready to share.

Edit the additional requirements

We provide three built-in additional requirements in the drop-down list. After you select one, its detailed content is displayed below.

Additional requirements dropdown

You can directly edit the content, which will be sent to the AI during this review. These changes apply only to the current review and do not modify the preset options in the drop-down list or affect reviews of other documents.

Additional requirement being edit for the current review

You can also click the Edit (pencil) icon on the right to edit the preset additional requirements or add your own ones:

  • Option 1: Select an existing additional requirement to edit its details.
  • Option 2: Click the Add (+) button to create a new additional requirement.
    Additional Requirements list

Regenerate risk analysis content

For each identified risky clause in the AI Contract Review pane, when you hover over the corresponding “Risk Description,” “Revision Suggestion,” or “Suggested Text,” a Regenerate icon appears. Click the Regenerate icon to regenerate the corresponding content.

Tip: The same regeneration logic applies to the Floating Panel. What is a floating panel?

Regenerate icon on the panel

Default insertion settings

Once risks are identified, you can decide what content (for example, only the risk description) is inserted and where it appears in your document. These settings are saved as defaults and are applied every time you click Insert, whether from the review pane or the ribbon.

  1. Click the drop-down arrow next to the Insert button, and select Insertion Options.
    Insertion Options option
  2. When the Insertion Options dialog appears, choose the content you want to insert (Risk Description, Revision Suggestion, Suggested Text), then select whether to insert it after the original text or as a comment.
    Insertion Options dialog
Tip: To define the appearance of any content added after the original clause, use the Format Settings on the Kutools Legal tab.

Recommended AI models

We recommend using newer models such as GPT-5 or Gemini 2.5, which can significantly improve analysis quality. Please note that these models use built-in reasoning that cannot be disabled, so analysis may take longer.

Remove AI bookmarks before sharing documents

Kutools uses bookmarks internally to locate original contract text. If you plan to share the document with others, these bookmarks may cause unintended issues. To avoid this, click AI > Clear Auxiliary Bookmarks Generated by Kutools AI Features before sending the document.

Clear Auxiliary Bookmarks Generated by Kutools AI Features option on the ribbon