The Future of Contract Intelligence – How AI is Revolutionizing Legal Document Management
Whether a five-page nondisclosure agreement or a 100-page master services agreement, getting accurate contract information from business and legal teams is challenging. Fortunately, AI is helping to streamline the process.
Smart contract intelligence software structures new contracts using intelligent templates and helps mitigate risk with the help of built-in compliance standards. It also provides instant visibility into contract obligations and terms to ensure compliance throughout the lifecycle.
AI Streamlines Workflows
A legal or compliance team that reviews contracts manually can spend days sifting through pages of clauses, terms, conditions, and obligations. A contract intelligence solution can do it in seconds, using natural language processing to understand a document and its meaning.
This technology goes beyond just automating the sifting and classification of contracts; it leverages machine learning to identify patterns and flag risks in real time. This allows humans to focus on high-value interpretation and analysis work, accelerating review times and improving contract management.
This is where the actual value of a valid contract intelligence platform comes in. By enabling transparency through advanced analytics, the software makes it easy to see when an organization breaches contractual terms. It can even help prevent revenue leakage through alerts and tasks that ensure critical business outcomes are met or mitigated. This value can bring a CLM to the next level of success.
AI Aids in Risk Mitigation
The best contract intelligence software uses Natural Language Processing to make sense of contracts, quickly retrieving vital information. This can include identifying and assessing clauses for risk, determining compliance, or even flagging ambiguous language for legal review. In addition to reducing the time spent on contract analysis, it can help create workflows that automate contract approvals, renewals, and e-signatures.
Contract intelligence can also track performance to ensure a company meets its contractual obligations. This will help minimize litigation risks while maximizing performance and profitability.
AI is designed to reduce manual, tedious, and time-consuming contract management tasks so that professionals can focus on more strategic work. As such, this technology will enhance productivity and provide a significant return on investment for any enterprise that implements it. Legal teams can access, organize, and analyze contract data at scale, all while avoiding the risk of costly mistakes or litigation.
AI Helps in Contract Approval
Reviewing a contract involves sifting through various clauses and terms to identify risks and determine areas of opportunity. Finding a needle in a massive pile of haystacks can feel like finding a needle, especially when contracts are incredibly complex and lengthy.
With the right AI software, a team can review and analyze large volumes of contract documents in seconds, giving the team more time to focus on strategic projects. It can also help streamline new contract setups by allowing employees to set up contracts with pre-populated data.
AI contracts software can quickly identify specific phrases or clauses and automatically forward contracts to the appropriate people for review. This makes handling contractual obligations much easier and faster for legal teams and reduces the inefficiency of manual agreement processes. This helps companies increase productivity and improves their ability to recognize revenue. It also reduces the costs and resources that go into contract management, ensuring that more money can be invested in growth and innovation.
AI Helps in Contract Review
There are many benefits to a contract management platform that utilizes AI, and it’s not just the exponentially faster review speeds, easier data extraction, and dashboards. The real value of AI contract software lies in enabling legal and procurement teams to focus on the higher-value aspects of their jobs, such as interpreting results and strategizing.
Sifting through pages of contract clauses, sections, and obligations can be tedious and take days for teams to complete. AI-based automation can help identify and track omissions and redline and create summaries of contracts to streamline the process.
AI can also aid in the risk mitigation aspect of contract review by identifying potential compliance issues, highlighting disputed or unfavorable terms, predicting the likelihood of legal disputes, and flagging performance obligations for rectification. This can save time and money by reducing the number of back-and-forth negotiations between lawyers and business leaders and prevent regulatory pitfalls from being overlooked.