When AI first arrived on the LegalTech scene, most of the buzz focused on drafting legal documents. And most of the criticism focused on hallucinations, inconsistent results and unreliable output.
Its creativity was often its Achilles heel.
Generative AI creates content from scratch with every prompt. Even when it builds on an existing draft, the results can vary. Sometimes the changes are subtle, other times they’re dramatic. Run the same prompt on a different day or with a different user and you might get entirely different answers.
Over time, the conversation has shifted. It’s no longer just “can AI draft legal documents?” Instead, we ask “can AI support specific tasks that make up legal drafting?”
“AI, generate me a contract” may not be the most effective prompt. But “AI, show me example liability clauses suitable for this contract” is getting closer.
Which brings us to the question:
What is the role of structured content, structured data and structured storage in getting the best out of legal AI?
Structured data: do more with more
Clean, well-organised data is essential for both automation and AI-powered tasks. Whether it’s complete client information in your CRM, categorised product data across departments or structured questionnaire responses from document automation, good data underpins reliable results.
Structured data makes information searchable, analysable and automation-ready. It lets you:
- Accelerate contract creation by pulling in up-to-date information
- Track obligations and automate renewals
- Spot trends for planning and decision-making
- Understand client and market behaviours
Structured content: the foundation for better drafting
Random drafting from old agreements or outdated templates creates risk. Without a reliable library of approved templates and clauses, you risk inconsistent language, legal exposure and slower negotiations.
A centralised bank of templates gives your team:
- Consistent legal positions across contracts
- Faster onboarding and training
- Shorter review cycles with less rework
- Confidence and clarity across departments
When your content is structured and reliable, you remove the guesswork and improve control.
Structured content and AI: better prompts, better results
Structured templates make AI more useful. Instead of relying on disjointed examples or generic patterns, AI can work with your approved content, slotting in the right language in the right places.
Prompt engineers suggest feeding AI five to twelve structured templates for optimal output. This gives it enough context to support your work, not derail it.
Structured storage: putting everything in its place
Letting AI roam through your entire organisation isn’t always smart. Not every file is fit for client work. Outdated agreements, irrelevant downloads or test documents can pollute results.
Using structured storage means you can include or exclude specific folders and maintain clean boundaries around what AI sees. This is especially powerful when integrated with your contract lifecycle management (CLM) system. With the right setup, you can:
- Create contracts and metadata at the same time
- Store documents securely in one searchable location
- Track renewals, reviews and key dates
- Bulk update clauses when laws or risk thresholds change
The power of combining all three
Use document automation as your data engine and you can:
- Push clean data into your CRM, CLM or billing systems
- Pull that same data into first drafts to eliminate double entry
- Standardise drafting so any differences are intentional
Use AI to redraft existing contracts and it can:
- Mine your CLM to find affected contracts
- Extract relevant data and push it into automation tools
- Generate new, updated versions instantly, only adjusting what’s necessary
Use AI-powered automation tools and you can:
- Direct AI to your approved templates library
- Extract data from emails or questionnaires
- Generate reliable first drafts using only approved language and layouts
Building towards the AI-enabled legal team
If you’ve already invested in document automation, don’t walk away from it now. Structured templates still matter. They carry hours of expert knowledge and stakeholder sign-off. They’re a key ingredient in safe, scalable legal AI.
Add strong data hygiene and storage discipline into the mix and you’re building a future-proof foundation for legal work. Not just faster, but better.
Legal AI is only as good as the content, data and structure behind it. Let’s make sure yours is working with the good stuff.
Drop us a line and we’ll help you get set up for success.