Analyzing Contracts

Analyzing Contracts

Step-by-step guide to running a contract analysis.

Supported input formats

Format Support level Notes
.docx (Word) ✅ Preferred Best accuracy
.pdf (text-based) ✅ Supported Must contain selectable text
Pasted text ✅ Supported Best for short contracts
SharePoint link ✅ Requires Copilot license Agent reads document in place
.pdf (scanned image) ❌ Not supported Convert to text first
.txt ✅ Supported Plain text only

Step 1 - Open Contract Risk Scanner for Microsoft 365

In Microsoft 365 Copilot, select Contract Risk Scanner for Microsoft 365 from the agent picker.

You’ll see a welcome message with conversation starters:

  1. “Run a Quick Scan on this contract”
  2. “Compare these two contract versions and show what changed”
  3. “Do a vendor risk review focused on data handling and security”
  4. “Prepare me for negotiation on this SaaS agreement”

Step 2 - Provide the contract

Option A - Upload a file

Drag and drop the file into the chat, or use the upload button.

Option B - Paste the text

Paste contract text directly. Best for short clauses or excerpts.

Option C - Reference a SharePoint document (Copilot license required)

“Analyze the contract at [SharePoint URL]”

Step 3 - Choose a mode (or let the agent ask)

The agent will ask which mode you want unless you specify one. See Analysis Modes.

Step 4 - Optionally upload a custom risk register

If you don’t provide one, the agent uses its built-in risk rules. To use your own custom risk register:

“Use the risk register in this attached file”

Upload your risk_rules_config.json along with the contract.

📖 Read more: Custom Risk Registers

Step 5 - Review the output

The agent produces a structured report. See Understanding the Output.

Step 6 - Export results

The agent generates downloadable files at the end of every scan:

  • risk_register.csv - for tabular analysis and reporting
  • risk_register.json - for system integration
  • contract_summary.docx - for review memos (Negotiation Prep mode)

📖 Read more: Exporting Results

Best practices

  • ✅ One contract per session for clearest results
  • ✅ Use Word format when available for highest accuracy
  • ✅ Upload a custom risk register when your organization has specific standards
  • ✅ Save outputs to SharePoint to share with your team
  • ❌ Don’t combine multiple contracts in one upload
  • ❌ Don’t expect legal advice - this is issue-spotting only

What if the agent can’t read my file?

You’ll see one of these messages:

Message Cause Fix
“Couldn’t extract readable text” Scanned PDF or corrupt file Convert to text-based PDF or Word
“This doesn’t appear to be a contract” Non-contract document Confirm with “scan anyway” if intended
“Document appears to be in [language]” Non-English contract Confirm and proceed; accuracy may vary

📖 Read more: Troubleshooting