Using AI or drafting securities documents yourself removes the professional reliance defense, a legal safeguard that protects you when a licensed attorney prepares them. A CPA-prepared tax return lets you hold the professional accountable; self-prepared documents leave you fully liable. Same risk applies to offering documents.
Using AI to draft your offering documents or drafting them yourself removes one of your most important legal defenses before anything even goes wrong. If your CPA prepares your tax return and something is wrong, you have recourse. You relied on their professional judgment. They're licensed. They took responsibility for the work, and you have grounds to hold them accountable. And they're likely to help you solve the problem. If you use tax software and something is wrong, you filed it yourself. Every number on that return is yours. You're responsible for all of it. AI-generated offering documents, or those you draft yourself, are the tax software version of securities compliance. You're signing the return. You took responsibility. When a securities regulator asks whether you took reasonable steps to comply with the law, I used an AI tool, or I drafted the documents myself, is not the right answer. I hired a licensed securities attorney who drafted these documents is the right answer. The document might look right, the sections might all be there, but the protection that matters when something goes wrong, that isn't in the document. It's in the relationship with the attorney who drafted it. AI can give you a document, or you can borrow your buddy's offering documents, but neither of those avenues give you a defense. If you want to understand where the professional reliance defense actually matters, the long form breaks it down. See the link in the bio.
