AI-Powered Analysis: How It Works & Limitations

Last updated: February 2026

How Lexilio's AI Works

Lexilio uses advanced artificial intelligence to analyze construction contracts. When you upload a contract and select a compliance playbook, our system:

  1. Extracts and identifies all contract clauses
  2. Detects the contract standard (FIDIC, NEC, JCT, AIA, or custom)
  3. Checks each clause against your company's compliance rules
  4. Flags risks based on severity (High, Medium, Low)
  5. Generates a compliance report with explanations and suggestions

The AI is specifically trained to understand construction contract language, payment terms, liability clauses, timelines, and industry standards.

What Lexilio Is Good At

Lexilio excels at:

  • Identifying missing or problematic clauses in seconds
  • Checking contracts against your company's standards at scale
  • Flagging common risks like unlimited liability, missing insurance requirements, or problematic payment terms
  • Spotting deviations from standard FIDIC/NEC/JCT/AIA language
  • Saving procurement teams hours of manual review time

Known Limitations

Like all AI systems, Lexilio has limitations:

Accuracy: While highly accurate, the AI may occasionally miss clauses, misinterpret ambiguous language, or produce incomplete results. This is especially true for heavily modified or non-standard contracts.

Context: The AI analyzes text but may not fully understand your company's specific business context, risk appetite, or strategic priorities that inform contract decisions.

Legal advice: Lexilio does not provide legal advice and should not be treated as a substitute for consultation with qualified legal counsel.

Evolving standards: Construction contract standards evolve. While we regularly update our models, there may be lag in reflecting the latest industry changes.

What Lexilio Does NOT Provide

Contract templates and standard forms:

Lexilio does not provide, distribute, or reproduce FIDIC, AIA, NEC, JCT, or other copyrighted contract standard forms. These documents are intellectual property of their respective publishers (FIDIC, American Institute of Architects, NEC, JCT, etc.) and must be purchased directly from authorized sources.

Lexilio analyzes YOUR contracts that you upload. We help you check your contracts against compliance rules, but we do not supply the underlying standard forms themselves.

Training on your data:

Lexilio does NOT use your uploaded contracts to train or improve our AI models. Your contracts remain confidential and are used solely to provide services to you. We fully respect intellectual property rights and data privacy.

When you delete a contract from Lexilio, it is permanently removed from our systems and cannot be recovered.

How to Use Lexilio Responsibly

  1. Treat it as a first pass: Use Lexilio to quickly identify potential issues, then have a qualified professional review the flagged items.
  2. Verify high-risk findings: Any HIGH severity risks should be reviewed by your legal team or senior procurement staff before making decisions.
  3. Customize your playbooks: The more specific your compliance rules, the more useful Lexilio becomes. Generic rules produce generic results.
  4. Don't skip human review: Even if Lexilio shows 100% compliance, have a human review the contract before signing, especially for high-value or complex projects.
  5. Report inaccuracies: If you find mistakes, let us know. This helps us improve the system for everyone.

Who Should Review Lexilio's Output

Depending on your organization, the following roles should review AI outputs before contractual decisions:

  • Procurement managers: For supplier agreements and subcontractor terms
  • Project managers: For scope, timeline, and delivery obligations
  • Legal counsel: For liability, indemnity, dispute resolution, and IP clauses
  • Finance teams: For payment terms, retention, and financial exposure

Legal Disclaimer

Lexilio is a software tool that provides contract analysis and risk identification services. It does not provide legal advice, and use of Lexilio does not create an attorney-client relationship.

All outputs generated by Lexilio—including compliance reports, risk assessments, clause summaries, and AI chat responses—are intended to support, not replace, professional legal judgment.

Before making any contractual decisions, consult with a qualified attorney licensed in your jurisdiction. Lexilio assumes no liability for decisions made based on AI-generated outputs.

For questions about this disclaimer, contact hello@lexilio.co