Adobe has launched new AI features for its Acrobat AI Assistant, which now includes automatic contract detection, key term summarization, and multi-version comparison. This aims to alleviate the challenges faced by consumers and businesses when dealing with complex legal documents.
Adobe introduces AI tools to simplify contract comprehension
Recent research from Adobe highlights that approximately 70% of consumers have signed contracts without comprehending all the terms. In the business sector, 64% of small business owners have chosen not to sign contracts due to a lack of understanding of the content involved.
“Control F is dead,” commented Lori DeFurio, a product executive at Adobe, regarding the traditional document searching method. This shift towards conversational AI represents Adobe’s goal to enhance the accessibility of intricate documents.
Contracts and agreements are commonly encountered in various life scenarios, such as gym memberships, employment, and business transactions. A survey stated that 73% of consumers, 68% of knowledge workers, and 91% of small and medium-sized business (SMB) owners handle contracts at least monthly.
The survey commissioned by Adobe Acrobat revealed significant insights regarding engagement with contracts. Key findings include:
- Contracts are integral to both professional and personal life.
- Many individuals sign contracts without fully understanding them.
- Length and complexity are primary reasons for not reading contracts.
- Uncertainty regarding contracts causes stress and can influence job performance.
- AI can enhance confidence in understanding contract information.
Specific audience reactions found that dealing with contracts elicits negative emotions among consumers. Nearly 70% expressed feelings of discomfort or anxiety when reading contracts, with 63% feeling “uncomfortable” or “terrified” upon signing agreements without full understanding. 69% admitted to signing contracts without knowing all details, resulting in two-thirds discovering unexpected terms afterward, with 15% labeling these findings as “horrifying.” Furthermore, 72% of consumers indicated that AI assistance in summarizing and comparing contracts could bolster their confidence in understanding contractual agreements.
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For small business owners, contracts are even more prevalent, with 91% engaging with them at least monthly, and 45% weekly. Among these owners, 62% have signed contracts without fully grasping the details, with 69% reporting a mix of discomfort and fear. Additionally, 60% encountered surprising terms post-signature, while 64% refrained from signing contracts due to uncertainty about the terms. Despite some hesitation towards adopting new technologies, 71% believe AI tools could assist in understanding contract details effectively.
Knowledge workers also face hurdles with contracts, as 61% of these employees admitted to signing documents without comprehending the specifics. Up to 32% of workers faced adverse workplace outcomes as a result, such as disciplinary actions or loss of trust. Technology leaders echoed these sentiments, with 96% believing AI would enhance employee contract comprehension.
The new contract intelligence features of Acrobat AI Assistant include functions such as automatic contract recognition, generation of concise overviews, straightforward explanations, and the ability to compare differences across multiple contracts, including scanned documents. Adobe Acrobat allows for secure sharing and signing, enabling users to easily review contracts with stakeholders.
Adobe collaborated with Advanis to survey 1020 U.S. consumers, 274 small business owners, 286 knowledge workers, and 202 technology leaders between January 6 and January 12, 2025, ensuring a representative demographic sample.
Featured image credit: Adobe
