{"id":33403,"date":"2025-11-27T22:24:06","date_gmt":"2025-11-28T06:24:06","guid":{"rendered":"https:\/\/essential.construction\/news\/why-chatgpt-still-needs-a-construction-lawyer\/"},"modified":"2025-11-27T22:24:06","modified_gmt":"2025-11-28T06:24:06","slug":"why-chatgpt-still-needs-a-construction-lawyer","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/why-chatgpt-still-needs-a-construction-lawyer\/","title":{"rendered":"Why ChatGPT (still) needs a construction lawyer"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/806320\/2025-11-25_08.11.20\/why-chatgpt-still-needs-a-construction-lawyer.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><em>This feature is a part of \u201cThe Dotted Line\u201d series, which takes an in-depth look at the complex legal landscape of the construction industry. To view the entire series,\u00a0<a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/the-dotted-line-everything-you-need-to-know-about-construction-contracts\/566539\/\" target=\"_blank\">click here<\/a>.<\/em><\/p>\n<p><span><span><span><span><span><span>Two and a half years ago, Construction Dive asked ChatGPT, OpenAI\u2019s large language model, to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/the-dotted-line-why-chatgpt-needs-a-construction-lawyer\/651205\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>generate a construction contract<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> on a design-bid-build job for a 600-unit, mixed-use project in San Jose, California. The document, attorneys said, could be legally enforceable \u2014 it addressed scope of work, payment terms, a termination clause and sections on indemnification, insurance and change orders.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But it also came with missing clauses and poor risk management. Those same attorneys cautioned that using artificial intelligence to solely generate a contract was akin to opening Pandora\u2019s Box \u2014 the risk was simply not worth it.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Construction attorneys now say the tech is here to stay and that its capabilities have improved as it has worked its way into myriad aspects of daily life. But after two years of improvement, can it now write an ironclad construction contract? More to the point, should construction attorneys turn to it to do so?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A headshot of Megan Shapiro.\" data-imagemodel=\"189925\" src=\"https:\/\/imgproxy.divecdn.com\/7btojy_DLICDxwcMXGjBsRnqAKA2JpKbqZlx-TGEseU\/g:nowe:148:0\/c:819:1024\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9tZWdhbl9zaGFwaXJvLnBuZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Megan Shapiro<\/p>\n<p>Permission granted by Megan Shapiro<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cOh my God, no. I would be terrified if I heard of anybody using it to generate a contract,\u201d said Megan Shapiro, a construction attorney and partner at law firm Radoslovich Shapiro in Sacramento, California.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>While AI does present uses for construction attorneys, experts cautioned that using it as a wholesale, one-stop-shop for contracts can only lead to trouble.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt&#8217;s not something where you press a couple buttons and you have a contract that&#8217;s ready to go,\u201d said Michael Vardaro, managing partner of New York City-based law firm Zetlin &amp; De Chiara.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><span><span>The hallucination issue<\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Shapiro didn\u2019t mince words when it came to AI tools\u2019 accuracy. She said it was \u201cshocking\u201d how wrong AI-generated content could be and how often that occurred.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Indeed, so-called hallucinations have been a massive problem for large language models. While that\u2019s been the case ever since generative AI made its mainstream debut in 2022, a bug developers pledged would become less prevalent with use and the tech\u2019s evolution, The New York Times reported in May that for newer AI systems, the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.nytimes.com\/2025\/05\/05\/technology\/ai-hallucinations-chatgpt-google.html\" target=\"_blank\"><span><span><span><span><span><span><span><span>hallucination rates reached as high as 79%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, depending on the test and tool.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For attorneys, this presents a significant business and ethics problem as they look to balance speed with accuracy. Case in point: the advent of LLMs has given rise to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.nytimes.com\/2025\/11\/07\/business\/lawyers-ai-vigilantes.html?unlocked_article_code=1.0E8.52Kz.sbyg6kcfR4kV&amp;smid=url-share\" target=\"_blank\"><span><span><span><span><span><span><span><span>\u201cAI slop\u201d in the legal system<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, or filings with bogus or misrepresented court cases, the Times reported on Nov. 7. Currently, a database that <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.damiencharlotin.com\/hallucinations\/?page=2&amp;page=3&amp;page=4&amp;page=3&amp;page=2&amp;page=1&amp;page=2&amp;page=3&amp;page=4\" target=\"_blank\"><span><span><span><span><span><span><span><span>tracks AI hallucination cases in legal systems<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> across the world has included, at the time of publication, about 600 cases \u2014 the majority of them in the U.S.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><span><span>Due diligence<\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>These issues present reputational and business risks, said Trent Cotney, a partner at law firm Adams &amp; Reese and the head of its construction team. Should an attorney file a brief with AI-fabricated documents or claims, the presiding judge could consider sanctions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Attorney Trent Cotney\" data-imagemodel=\"173598\" src=\"https:\/\/imgproxy.divecdn.com\/4FYohaNNLXs-r4_EB1TGykpAOpN8G2kNw9bQ7M-GPxU\/g:nowe:77:0\/c:467:658\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmVudF9Db3RuZXlfS3ZNdkRQUC5qcGc=.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Trent Cotney<\/p>\n<p>Courtesy of Adams and Reese LLP<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cNot to mention the fact that there&#8217;s a reputational hit, and your client obviously is not going to be happy with that either,\u201d Cotney said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Shapiro said that what keeps her up at night is the thought that her clients could be using AI on their own without discussing it with her. She fears that if someone at a construction firm doesn\u2019t want to pay to call an attorney on that legal issue, then that person may attempt to figure the problem out on their own.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cI think the risk to them is getting substantially worse, because I think consumer confidence in the output is increasing, despite the fact that I think the quality of the output is decreasing,\u201d Shapiro said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><span><span>Finding an edge<\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>With diligence and a careful eye, however, attorneys said there are ways AI can help legal professionals with their daily tasks.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A headshot of Michael Vardaro\" data-imagemodel=\"189927\" src=\"https:\/\/imgproxy.divecdn.com\/qbXO64Qu72Apg5eak1PzJ_QcGgJZFUmXFi-2y8nXAmw\/g:nowe:341:0\/c:1320:1650\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9WYXJkYXJvX01pY2hhZWxfTWVkaWEucG5n.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Michael Vardaro<\/p>\n<p>Permission granted by Zetlin &amp; De Chiara<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>Vardaro, for example, said one of the benefits of AI was its ability to corral documents and seek out sections contained within them, a job that was left to associates years ago.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cNow, AI can kind of do that and give you kind of the hits in that project file within minutes, where that might have taken weeks, if not months, to do,\u201d Vardaro said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<p><span><span><span><span><span><span>Experts also called out its ability to review contracts for specific provisions. Cotney, who refers to himself as an early adopter of the tech, will use it as a gut check, particularly when it comes to verifying references and citations.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cI do use AI for purposes of cross checking what I&#8217;ve done, identifying if there&#8217;s something else to think of that I haven&#8217;t thought of, or helping me fine tune certain things or compile certain things,\u201d Cotney said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Shapiro will sometimes use AI in her work as a research tool, but that\u2019s where it stops for her. It will help her find and identify resources and paths to explore that she wouldn\u2019t get in other ways.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThinking of it as a law clerk or a low level associate, a young attorney and reviewing it that way, I certainly think that there&#8217;s value there,\u201d Shapiro said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>At the same time, attorneys said AI tools need to be prompted by people who already know the law, in order to flag if something that it produces is suspect.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt&#8217;s not a completely useless tool,\u201d Shapiro said. \u201cIt&#8217;s just a tool that needs to be utilized by a user who has the knowledge and experience to leverage it in a safe, effective, efficient way.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/why-chatgpt-still-needs-a-construction-lawyer\/806320\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. 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