In an age where AI can write emails, code and even contracts, it’s tempting to think it can handle your legal documents too. You might be wondering: Can’t I just ask ChatGPT to draft my NDA?

Technically? Yes. But should you rely on it? That’s another matter entirely.

At Berry Smith we’ve reviewed enough templated and AI generated contracts to know that when it comes to protecting your business’s confidential information, a generic NDA simply doesn’t cut it.

What is an NDA?

A non-disclosure agreement (NDA) is a legally binding contract that protects confidential information shared between parties. Whether you’re pitching an idea to investors or engaging a contractor, NDAs are designed to prevent the other party from using or disclosing sensitive information without permission.

The problem with AI generated NDAs

· Overly vague or too rigid – failing to reflect the specific commercial relationship or the type of information being shared.

· Missing key clauses – important terms like return or destruction of information, duration of confidentiality or ownership of IP.

· Unclear on what is actually protected – generic NDAs may fail to define ‘Confidential Information’ leaving it open to dispute whether a breach even occurred.

· No distinction between mutual and one way disclosure – this can create confusion about which party has obligations.

· No enforcement or remedy provisions – without clear consequences for breach enforcement becomes far more difficult.

· No consideration of data protection obligations – if personal data is shared, NDAs need to reflect the UK GDPR requirements.

Berry Smith’s Bottom Line

Quick isn’t always safe: relying on AI tools for something as important as an NDA without legal review can create more risk than it resolves.

At Berry Smith, we regularly advise businesses on how to structure, draft, and enforce NDAs that are commercially sound, enforceable, and fit for purpose.

Whether you’re at the start of a new business relationship or exploring a potential deal, we can help ensure your confidential information is properly protected.

For expert guidance, you can reach our commercial lawyers at 02920 345511 or commercial@berrysmith.com