David Slater, Cardiff University, UK, dslater@cambrebnsis.org and
John Kunzler, Marsh Specialty UK, Marsh Ltd., John.Kunzler@marsh.com
Abstract
The integration of Artificial Intelligence (AI) into legal contract review processes promises faster, more consistent detection of errors and risks, yet introduces new complexities that traditional workflow models cannot adequately capture. This report applies the Functional Resonance Analysis Method (FRAM) to reframe AI-assisted contract review as a dynamic socio-technical system characterized by interdependent human and AI functions, each subject to performance variability. Drawing on real-world case studies, scenario simulations, and system modeling, the report demonstrates how minor fluctuations in AI reliability, human judgement, and task conditions can interact to produce resonant error patterns. By constructing a detailed FRAM model of contract review workflows, we identify critical pathways where variability amplifies risk and propose resilient system designs that maintain human interpretive authority. The findings underscore that optimizing AI-human collaboration requires not only better tools, but systemic redesign grounded in complexity science principles. FRAM provides a structured, predictive approach to making AI integration in legal practice safer, smarter, and more accountable.
Keywords
Functional Resonance Analysis Method (FRAM)
Legal Technology
Artificial Intelligence in Law
Human-AI Collaboration
Contract Review Reliability
Socio-Technical Systems
Risk Modeling and Resilience Engineering
Introduction
The review of legal contracts for risks, errors, inconsistencies, and omissions has long been a critical pillar of professional legal services. Traditionally reliant on meticulous human expertise, this painstaking work demands high levels of concentration, deep domain knowledge, and contextual understanding of client needs and regulatory frameworks. Although legal contract review can be conducted by many businesses themselves, law firms generate value from the level of assurance they bring to such tasks by providing high reliability, and heavily insured and guaranteed recourse in the event of an error. Over recent years, however, the rise of Artificial Intelligence (AI) systems, particularly those based on large language models (LLMs), has begun to reshape this landscape. LegalTech companies, internal law firm innovations, and broad technology integrations are increasingly supplementing human effort with machine-based assistance, promising faster, cheaper, and in some cases more consistent contract review.