Microsoft puts an AI legal agent inside Word for contract review

Microsoft has rolled out a specialized AI agent for lawyers in Word. The "Legal Agent" is now available through the Frontier program in the US and is built to streamline contract work. The agent reviews contracts clause by clause, flags risks and obligations, and compares document versions. It suggests edits with tracked changes, keeps formatting intact, and separates earlier revisions from new proposals. Users can also check contracts against their own internal guidelines.

Microsoft says it built the agent with input from lawyers, and it follows structured workflows rather than relying on general-purpose AI models. A custom algorithm handles edits consistently, so a language model isn't generating every change directly.