Microsoft Launches Legal Agent AI Tool Inside Word for Contract Review

May 1, 2026

Microsoft has launched Legal Agent, a new AI tool integrated directly into Microsoft Word that is specifically designed for legal teams to review contracts, suggest edits, and check clauses against internal guidelines. According to Sumit Chauhan, corporate vice president of Microsoft's Office Product Group, the tool follows structured workflows shaped by real legal practice rather than relying on general AI models to interpret commands. Legal Agent manages clearly defined, repeatable tasks like reviewing contracts clause by clause against a playbook, and can work with existing documents that have tracked changes. The tool handles document edits, negotiation history, and complex documents, representing Microsoft's push to embed specialized AI agents into its productivity software for professional workflows.

Microsoft's Legal Agent AI tool for contract review

▪Microsoft is launching a new AI agent inside Word that is specifically designed for legal teams
▪Microsoft's Legal Agent handles document edits, negotiation history, and complex documents
▪Sumit Chauhan is corporate vice president of Microsoft's Office Product Group
▪Microsoft's Legal Agent helps legal teams handle tasks like reviewing contracts

How Legal Agent works with structured workflows and documents

▪Microsoft's Legal Agent can work with existing documents that have tracked changes
▪Microsoft's Legal Agent manages clearly defined, repeatable tasks like reviewing contracts clause by clause against a playbook
▪Microsoft's Legal Agent follows structured workflows shaped by real legal practice rather than relying on general AI models to interpret commands

Perspective of Microsoft

▪Microsoft's Legal Agent performs clearly defined, repeatable tasks rather than interpreting open-ended commands
▪Microsoft's Legal Agent reviews contracts clause by clause against a playbook
▪Microsoft's Legal Agent is designed around structured workflows shaped by real legal practice