The Problem
When AI jumps straight to conclusions without showing reasoning, errors are hard to spot. You can't tell if the AI made a logical leap, missed a step, or simply guessed. Complex legal analysis requires transparent reasoning.
The Solution
Add this phrase to your prompts:
"Think step-by-step before answering. Show your reasoning."
This is known as "chain of thought" prompting. It asks the AI to set out how it reached its answer.
How to Use It
[Your complex legal question]
Think step-by-step before answering. Show your reasoning
for each conclusion you reach.
Before You Rely on This
The examples on this page are made up to show the technique. No test results have been published for it, so try it on your own work and judge it by what you find.
This guide is about how to word a prompt. It does not make a client's document or information safe to put into an AI tool. What you may enter depends on the plan your firm has, its agreement with the vendor and your firm's policy: Claude Projects for Client Matters sets out the checks for one tool. To practise, use a precedent or a published document that contains no client information, and refer to parties by role.
Why It Works
Asking for the steps puts the reasoning on the page, where you can check it. This guide makes no claim that it reduces the number of errors. What it gives you is a way to see where an error is.
Example
Without step-by-step:
Can our client terminate this contract early?
[attaches 40-page agreement]
AI response: "Yes, under Clause 14.3, your client can terminate with 30 days' notice."
Problem: You don't know if AI checked for conditions, penalties, or cross-references.
With step-by-step:
Can our client terminate this contract early?
[attaches 40-page agreement]
Think step-by-step. Show your reasoning.
AI response:
Let me work through this step-by-step:
Step 1: Identify termination provisions
- Clause 14.3 allows termination for convenience with 30 days' notice
- Clause 14.4 covers termination for cause
- Clause 14.5 covers automatic termination events
Step 2: Check conditions for Clause 14.3
- Requires written notice
- Subject to payment of early termination fee (Clause 14.3(b))
- Cannot be exercised during first 12 months (Clause 14.3(c))
Step 3: Check contract start date
- Agreement dated 1 January 2025
- We're now in March 2026 - over 12 months ✓
Step 4: Check early termination fee
- Clause 14.3(b): Fee = 50% of remaining contract value
- Remaining term: 10 months
- Monthly fee: £10,000
- Early termination fee: £50,000
Conclusion: Yes, client can terminate, but must:
- Give 30 days' written notice
- Pay £50,000 early termination fee
Much better. You can now see exactly what the AI checked and verify each step.
Pro Tips
- Essential for: Multi-step analysis, contract interpretation, risk assessment
- Combine with The Citation Verification Rule for research tasks
- The instruction is plain English, so it is not tied to one tool or model version
- Less useful for simple, factual questions
Common Mistakes
❌ Using for simple tasks: "What's the court fee for issuing a County Court claim? Think step-by-step." (Overkill)
❌ Not reviewing the steps: The whole point is to verify the AI's reasoning.
✅ Using for anything with multiple moving parts: Contract analysis, dispute strategy, regulatory compliance.
Quick Reference
Standard template:
[Complex legal question or task]
Think step-by-step before answering:
1. [What should AI consider first]
2. [What should AI consider second]
3. [What should AI conclude]
Show your reasoning for each step.