Artificial intelligence is rapidly becoming part of everyday work in commercial shipping, including how contracts and clauses are drafted, reviewed and compared. From document review and clause comparison to drafting assistance, AI is already changing how contractual work is carried out across the shipping industry.
What the industry is saying
A survey of BIMCO Documentary Committee (DC) members conducted earlier this year illustrates how quickly the landscape is evolving. While only 20% of respondents reported that AI tools have already been implemented within their organisations for contractual work, 70% expect adoption within the next three to five years. Notably, 25% of respondents had already encountered clauses drafted by AI rather than using established contractual wording.
The survey also revealed a consistent theme: AI can improve efficiency and assist with routine drafting tasks, but human expertise remains essential. Respondents highlighted concerns about over-reliance on AI, the risk of inaccuracies and the possibility that important commercial and legal nuances may be overlooked if AI-generated wording is not properly reviewed.
Several also warned that users may accept AI-generated wording at face value without fully understanding its implications or checking whether it achieves the intended result. A clause generated by AI may look convincing while still allocating risk in an unintended way, omitting an important operational trigger, or failing to reflect the commercial bargain the parties intended to reach. These concerns reinforce the continuing importance of robust contractual standards developed through industry expertise and collective review
Why process matters
As AI makes it possible to generate contractual wording in seconds, a practical question emerges: what value does an industry-standard clause still add?
The answer lies in how those clauses are developed.
BIMCO contractual solutions are developed through a structured process bringing together shipowners, charterers, brokers, lawyers and insurance experts. The objective is to ensure that contractual wording is fair, balanced and practical. Drafting groups are supported by the BIMCO Documentary Committee, a global body of more than 90 members whose commercial, legal, insurance and brokering expertise provides an additional layer of scrutiny before contracts and clauses are published.
This collaborative approach differs fundamentally from AI-generated drafting. While AI can generate text based on existing material, it cannot negotiate between competing interests or build industry consensus. Contract clauses often allocate significant risks, making input from stakeholders with different perspectives essential. Insurance specialists, including representatives of the International Group P&I Clubs, also contribute to BIMCO drafting projects to ensure that insurance implications are properly considered and that contractual provisions remain workable in practice. This level of collective review cannot be replicated by AI alone.
Authenticity matters more than ever
BIMCO’s contracts and clauses are published through SmartCon, BIMCO’s online contract platform, which provides users with access to authentic BIMCO contracts and clauses.
As AI-generated clauses become more common, the ability to identify genuine contractual standards becomes increasingly important. To help preserve the integrity of standard contracts, BIMCO introduced the Contract Authenticity Clause, which provides that "the party responsible for issuing the final execution version of this Contract warrants that it is an Authentic BIMCO Template procured from a properly authorised source and that all modifications to it are clearly visible".
The clause defines an Authentic BIMCO Template as "a BIMCO-approved standard contract in an editable electronic format". This provides assurance that the contract presented to the other party is based on an original BIMCO template and helps protect against counterfeit forms, hidden alterations and uncertainty over the origin of contractual wording. To help the industry avoid the inadvertent use of counterfeit BIMCO forms, BIMCO has created a free SmartCon verification tool that allows users to upload a SmartCon PDF and check whether the contract is authentic.
The human element remains essential
This does not mean that AI has no role in the development or use of contractual material. Used carefully, it may support research, comparison and consistency checks and administrative tasks. The distinction is that such tools should assist the process rather than replace the professional judgement and industry scrutiny on which reliable contractual standards depend.
AI may be able to generate clauses. What it cannot replicate is the process through which BIMCO clauses are developed: consultation across the industry, scrutiny by experts, consideration of insurance implications, balancing of competing interests and approval by the Documentary Committee. Ultimately, the value of a BIMCO clause lies not only in the words on the page, but in how those words came together.
