AI is transforming contract management, ushering in a new era of efficiency and accuracy. Its role in CLM solutions is to automate tasks, ensure compliance, and extract data from contracts. AI’s success depends on the quality of the data it uses.
AI-powered tools facilitate dispute resolution
Contract intelligence is the application of artificial intelligence (AI) and machine learning (ML) to analyze and understand legal contracts. It’s like having a superpowered legal assistant who can read through mountains of paperwork, extract critical information, and identify potential risks and opportunities. One of the most critical applications of AI in contract management is its role in dispute resolution. The automated processes enabled by AI reduce the time and resources required for handling contract disputes. It also helps legal teams avoid costly litigation by reducing the number of disputes and providing early warnings about potential risks or compliance violations.
The most popular form of DR is online dispute resolution (ODR), which involves a third-party neutral who uses data provided by disputing parties to determine the suit. Currently, there are three types of ODR:
AI-powered tools facilitate ODR by automatically extracting and classifying data from contracts. It reduces the need for human interpretation and improves accuracy. Moreover, AI-based dispute resolution tools use a robust audit trail to record and validate information. It ensures that all contractual parties have access to accurate and complete information. The audit trail also provides a history of changes made to contracts. It helps prevent unauthorized access to sensitive or confidential information.
AI-powered contract management platforms automate version control
AI-powered contract management tools rely on natural language processing and machine learning to process the information contained in contracts. It enables them to extract vital data points and streamline the contract review, drafting, negotiation, and approval process. It also helps organizations minimize risk and stay compliant with regulatory requirements.
The contract data that AI identifies includes vital terms, obligations, deadlines, and payment details. The software can automatically populate these crucial points in new contracts, ensuring all stakeholders work from the same information. It improves pre-signature accountability, which prevents missed revenue opportunities and mitigates risks of regulatory penalties or contract breaches.
The automated extraction process also saves time by eliminating manual data entry. Legal teams can reduce human error and focus on high-value activities. It also allows teams to efficiently manage large volumes of contracts without compromising efficiency or accuracy.
AI-powered contract management platforms extract data from contracts
AI simplifies tedious tasks by scanning for essential dates, analyzing contract terms and clauses, flagging ambiguous language for legal review, or reminding that team member who always forgets to sign the last page. It saves countless hours for your team and prevents mistakes that could impact business revenue.
AI-based tools also enable scalable contract management, helping your team meet increasing volume without compromising accuracy. They automate recurring tasks, identify possible problem areas, and manage large uploads.
Additionally, AI tools provide comprehensive version control by keeping a history of all contract changes, eliminating confusion and making it easier to resolve disputes. Essentially, they act like a digital bouncer for your contracts, protecting them from any breach. It ensures your company remains a trustworthy and reliable partner for customers, partners, and vendors alike. This is what makes them an ideal addition to your CLM toolkit.
AI-powered contract management platforms enable scalable contract management
AI contract management solutions leverage natural language processing and machine learning to ingest, organize, and analyze information found in contract documents. As it sifts through contracts, the system learns about necessary parties and critical dates, identifies obligations, and extracts relevant clauses. It can even perform simple tasks like sending notifications of impending deadlines, flagging ambiguous language for legal review, and emailing reminders to that teammate who always forgets to sign off on contracts.
This data-centric approach enables companies to better prepare for future negotiations by pinpointing potential risks and opportunities. The system provides insightful suggestions during negotiation, enhancing team performance and overall contract outcomes.
Using AI to streamline contract processes, companies can better manage the volumes of agreements they deal with daily. It helps them improve accuracy, protect intellectual property, and optimize negotiating strategies. Technology and retail companies, for example, typically handle numerous customer and vendor agreements that require careful monitoring.
