HeyMagda AI launched to audit freelancer contracts

The company dealdraft GmbH has launched HeyMagda, a specialized artificial intelligence software designed to analyze service and work contracts with freelancers. Developed by lawyer Magdalena Seiler, the tool aims to identify contractual deficiencies that could be interpreted as deceptive self-employment (Scheinselbständigkeit) during audits.

The software functions by comparing uploaded contracts against a structured playbook of legal knowledge. Within approximately one minute, it generates a report highlighting non-compliant provisions and can automatically produce a supplementary agreement in Word format to rectify identified issues without altering the original contract.

The launch is a response to the changing audit practices of the German Pension Insurance (Deutsche Rentenversicherung), which now utilizes an AI-based system called KIRA to automate the analysis of large datasets during inspections. This shift increases the risk for companies, as misclassified freelancers can lead to significant retroactive social security and tax payments, fines, and personal liability for management.