An automatic similarity comparison and interpretation method of contracts is executed by a computer system that stores a to-be-parsed contract data and multiple reference contract data. The to-be-analyzed contract data includes a plurality of to-be-parsed sentences, each reference contract data includes a plurality of reference sentences, and the method includes the following steps:(A) For each to-be-parsed sentence, the computer system compares the to-be-parsed sentence with the reference sentences to obtain a target reference sentence that is the most similar to the to-be-parsed sentence from the reference sentences in the reference contract data; and (B) For each to-be-parsed sentence, according to the to-be-parsed sentence and the target reference sentence, the computer system uses an parse model for parsing the relevance of the two sentences to generate a parsing result including the relevance of the to-be-parsed sentence and the target reference sentence. |