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EARLY RELEASE
30 Years of Construction Law Meets AI
When a contractor used ChatGPT to redline a contract, the edits looked polished and professional, but they were arguing against their own position. That's one of several eye-opening stories Michael Vardaro, a 30-year construction attorney based in New York City, shares in this episode about how AI is reshaping construction law, for better and for worse.
From AI tools that surfaced 17 potential change orders from a single drawing set to the American Arbitration Association launching its first-ever AI arbitrator, the legal landscape in construction is shifting fast. Michael breaks down what's working, what's dangerously misleading, and why the professionals who marry AI tools with real judgment will come out on top.
In this episode, you’ll:
Hear the cautionary tale of a contractor whose AI-generated contract redline backfired and what it reveals about over-relying on ChatGPT for legal work
Learn how one AI platform identified 17 potential change orders from a complex drawing set before construction even started
Get the inside breakdown of the AAA's new AI Arbitrator: how it works, what it means for dispute resolution, and where it's headed next
Discover why AI meeting minutes are becoming a legal liability on construction projects and what to do about it
Understand how AI is changing attorney billing models and the smart questions to ask your legal team right now
Chapters:
00:00 - Meet Michael Vardaro: 30 Years in Construction Law
01:26 - AI Use Cases in Construction Litigation
04:19 - Beyond Boolean: How AI Finds What Keyword Searches Miss
07:07 - Preventing Disputes Before They Start
09:05 - AI-Powered Drawing Reviews and Scope Gap Detection
13:45 - Can AI Replace Your Legal Team? Not So Fast
15:16 - The ChatGPT Contract Disaster: A Cautionary Tale
19:35 - AI as a Tool, Not a Replacement for Judgment
24:54 - How AI is Disrupting the Billable Hour in Construction Law
25:53 - The CAD Revolution Parallel: Why AI Won't Replace Lawyers
30:18 - Case Study: AI Chronology on a $500M Dispute
34:21 - Inside the AAA's Groundbreaking AI Arbitrator
40:32 - Could AI Handle Interim Decisions on Mega Projects?
43:03 - The #1 Root Cause of Construction Disputes
45:13 - AI Meeting Minutes: A Legal Time Bomb
50:55 - The Costly Contract Mistake Most Companies Still Make
52:33 - What to Ask Your Legal Team in the Age of AI
55:01 - Michael's Call to Action: Build the Tool That Doesn't Exist Yet
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