Use case

A Local AI First Pass for Confidential Contracts

A lawyer reviews a confidential contract beside a source-linked clause artifact on a private local workstation.

A confidential contract lands late in the day, before a negotiation or internal review. The useful first question is not “Can AI summarize this?” It is: Can I narrow the reading without sending the client’s document into a general-purpose cloud workspace—and can I trace every flag back to the agreement itself?

This bounded use case applies Agenaxy’s machine-enforced trust boundary for agentic work around a lawyer-defined question and source set. It keeps supplied inputs separate from new Artifacts and exposes relevant steps, tool calls, and file operations through Activity/Trace.

At a glance

  • Best fit: one contract, one defined issue, and a clear evidence standard.
  • Useful output: a source-linked issue list plus visible proposed changes in a separate edited contract copy.
  • Working boundary: the input contract remains separate from notes, suggestions, and edited contract copies.

For one narrowly defined review question, the synthetic source set might contain the following extracted language. The connections are intentionally left for the review output to make.

Section Extracted text · general OCR
§1.2 “Confidential Information” means all non-public information disclosed by Discloser, including product roadmaps, pricing, and all test results and benchmark data generated by Recipient under this Agreement.
§4.2 Recipient may disclose Confidential Information where required by law or to a regulator with jurisdiction, provided Recipient gives Discloser prompt written notice.
§8.3 Recipient shall not publish, or disclose to any third party, any test or benchmark results relating to the Evaluation described in Exhibit A without Discloser’s prior written consent, except as expressly permitted in Section 4.2.
§11.1 Sections 1, 5 through 9, and 12 survive termination or expiration of this Agreement for three (3) years.

Extraction noteScanned pages 7–8 · two low-confidence words in §11.1 marked for visual check

Illustrative first-pass output first-pass.md · NDA-redline-copy.docx
4 observations · source-linked
  1. 01
    Publication bar captures Recipient’s own benchmarks.§1.2 + §8.3 · The planned benchmark post needs Discloser consent.
    Negotiate · Open
  2. 02
    The regulator carve-out may not survive with the publication bar.§11.1 lists §§1, 5–9, and 12; it omits §4.
    Clarify drafting
  3. 03
    §4.2 permits regulator or legally required disclosure only.It does not independently permit publication.
    Cleared · No action
  4. 04
    Exhibit A was not supplied.The Evaluation scope may change the reading of §8.3.
    Request document

Visible change list · §8.3

Proposed change 1 of 2

Recipient shall not publish, or disclose to any third party, any test or benchmark results relating to the Evaluation described in Exhibit A without Discloser’s prior written consent, except as expressly permitted in Section 4.2. except (a) as expressly permitted in Section 4.2, or (b) aggregated results that do not identify Discloser, which Recipient may publish without prior consent.

2issues to negotiate 1clause cleared 1document to request 2proposed changes in a separate edited copy
Illustrative workflow using lawyer-defined fields. The contract language, sections, observations, and visible changes are invented to show the structure; they are not legal advice or a recorded Agenaxy run. Suggestions are shown as a change list and applied only to a separate contract copy.

The value is the short route back to the exact words, the surrounding context, and the next drafting option.

A smaller, source-linked review surface

A first pass gives the lawyer a smaller, source-linked review surface.

Manual hunt Source-linked first pass
Search the document repeatedly for related wording Review one issue list with section and excerpt links
Keep possible issues in email, chat, or memory Keep each issue beside its source and unresolved context
Reconstruct what the tool did after the fact Inspect the Artifact alongside the relevant Activity/Trace
Move between a summary and the source Keep each observation beside its source and drafting option

The legal method comes from the lawyer. Agenaxy enforces the chosen model and tool connection boundary around the run, keeps supplied inputs separate from generated work, and preserves an inspectable record of the mechanics.

The lawyer defines the first pass

“Review this NDA” leaves too much unstated. The lawyer names the issue, the evidence to return, and the point where the agent should stop.

Find every clause that may restrict publication of benchmark results. Return the document section, exact excerpt, linked definitions or survival language, and an uncertainty note. Add source-backed drafting options where useful.

The illustrated follow-on run turns the source-linked observations into a visible change list and applies the proposed language only to a separate contract copy.

2. Choose the data and model boundary first

Before adding the document, decide who may receive its text. A model running on the same machine keeps model context there; an approved remote model or server receives the context sent to it. Vault Mode restricts the run to trusted connections.

Supply the materials needed for the question. For scanned documents, a general OCR or text-extraction step can prepare working text inside the same boundary. Agenaxy works on the supplied input copy and writes notes, redline suggestions, and edited contract copies as separate outputs.

3. Verify the cited output

Open every material excerpt in context. Check defined terms, schedules, amendments, cross-references, governing language, page completeness, and extraction quality. A correct quotation can still support the wrong issue if the model misses an exception two pages later.

Then inspect the relevant Activity/Trace: which attachment was read, which tools ran, and which Artifact or contract copy was written.

Five questions to ask before trusting a contract first pass

  1. Where does the contract text go? Name the local model or each approved remote destination explicitly.
  2. Can every flag return to the source? Require a section, excerpt, and any definition or cross-reference that could change the reading.
  3. Are the inputs and outputs separate? The supplied agreement should remain distinct from notes, tables, and draft language produced during the run.
  4. Is the working set clear? List the supplied agreement, related materials, OCR output, and edited copies.
  5. Can a person reconstruct the run? The Artifact and Activity/Trace should show the relevant files and actions.

Professional boundary

The American Bar Association’s Formal Opinion 512 discusses lawyers’ existing professional duties when using generative AI. In this workflow, the lawyer accepts, rejects, or rewrites each suggestion and makes the final judgment.

FAQ

Can a local AI review a confidential contract without uploading it to a cloud model?

Yes, if the selected model runs on the same machine and the run uses only local tools. Every approved remote destination and deliberate export is a separate data path. Choose those boundaries before adding client material.

Does local processing or Vault Mode preserve privilege or make the workflow compliant?

Local processing and trusted-connection controls can reduce data exposure. Applicable privilege, confidentiality, consent, retention, supervision, security, and compliance requirements still depend on the matter and firm.

What documents fit this first-pass workflow?

The lawyer chooses the source set. A general OCR step can turn scanned pages into working text inside the same controlled run.

Can the agent suggest contract revisions?

Yes. The agent can draft source-linked redline suggestions and apply them to a separate contract copy.

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