The 8 Ways Using Artificial Intelligence in Contracts Adds Value to Your Agreements
Modern businesses often juggle upwards of one hundred agreements at any given time. When you rely on manual practices, this is nearly impossible to do quickly and without errors. Utilizing artificial contract intelligence in contracts streamlines the entire process, saving your company time and money. With advanced analysis features, AI allows you to make well-informed business decisions.
The evolution of artificial intelligence in contracts
Contracts have become increasingly difficult for businesses to manage in the modern-day. They are involved in almost every business transaction, scattered across various locations, and have evolving regulations. This makes managing them efficiently nearly impossible, which leads to the chance of missing out on beneficial business opportunities. The increasingly complicated management process is how the need to intelligently manage contracts arose.
So, what exactly is AI-powered contract management?
AI is designed to automate data insertion, extraction, protection measures and identify potential risks. It achieves this through machine learning algorithms that allow the platform to identify and interpret patterns and determine the best decision based on that analysis. This means that it transforms static documents and data into a dynamic tool that your company can use to improve its oversight, identify opportunities, and mitigate risk.
The impact of artificial contract intelligence contract software
Combining AI with CMS has revolutionized how businesses handle agreements by mitigating the challenges and errors that come with manual contract management.
AI takes over the tedious components of the management process, allowing businesses to strategize and make educated decisions with a better understanding of risk and the connection between data, agreement language, and contract lifecycles. This enables companies to draft advantageous agreements without wasting time and resources.
The 8 ways that artificial intelligence contract management software brings value to agreements
Artificial intelligence is the future of contracting. It helps businesses overcome the challenges of managing a large number of agreements by automating and streamlining the process. The technology can quickly organize and analyze the terms of any amount of documents, allowing companies to reduce risk, shorten lifecycles, and obtain oversight into their repository of contracts.
Here are 8 of the ways that AI can boost your contract management process
Intelligent contract authoring
AI contract management solutions automatically identify and arrange documents in a contract library. Machine learning algorithms allow AI to learn from past agreements and identify patterns to suggest suitable terms and pre-defined terminology. One of the most advantageous features of artificial contract intelligence CLM is context-based analysis. The solution can identify relevant clauses that should be used while authoring and drafting an agreement depending on its type.
The context-based analysis provided by artificial contract intelligence contract lifecycle management (CLM) is particularly advantageous. When authoring and drafting an agreement, the AI solution can identify the agreement’s type and purpose and recommend relevant clauses to include. This contextual analysis takes into account factors such as industry standards, legal requirements, and specific contract types, ensuring that the agreement is comprehensive and tailored to meet the unique needs of each situation.
With intelligent contract authoring, contract authors benefit from increased efficiency and accuracy. The AI solution assists in navigating through a vast library of clauses, reducing the time spent searching for appropriate language. By leveraging machine learning capabilities, the AI system continually improves its suggestions based on feedback and user preferences, further enhancing the authoring process over time.
Efficient risk analysis, assessment, and mitigation
Artificial intelligence contract analysis means that the system can sort through documents, classify clauses, and determine the differences between agreement versions. By analyzing agreements, AI can assess which terms and clauses are too risky or not in your company’s best interest. Additionally, the software will suggest alternate terms that will reduce the risk of the agreement.
Using AI for contract terms and clauses extraction
AI contract management enables your company to create agreements from a library of templates and clauses while comparing versions and highlighting audit trail changes. This improves the efficiency of contract creation by eliminating errors and boosting the negotiation process. Since your company can create contracts effortlessly, you can achieve faster closures and reduce expenses.
One of the key advantages of AI contract management is the ability to compare different versions of contracts and highlight changes in the audit trail. This feature enhances the negotiation process, allowing parties to easily identify modifications made during the contract lifecycle. With AI-powered analysis, it becomes easier to track and understand the evolution of a contract, ensuring that all parties are on the same page.
The efficiency gained through AI contract management has a direct impact on business operations. By eliminating errors and streamlining the contract creation and negotiation processes, your company can achieve faster closures and reduce expenses associated with manual contract management. With contracts created effortlessly and accurately, your team can focus on higher-value tasks and strategic initiatives, ultimately driving business growth and success.
Advanced artificial intelligence contract analysis
Intelligent contract analytics is where AI can make the biggest impact on your contract management process. AI can recognize patterns, identify anomalies, and optimize clauses using machine learning. Since the software scans datasets and pulls any notable information, it’s extremely helpful for highlighting unexpected correlations and issues that your business may not have known about.
Optimized contract cycle timelines
The average contract cycle takes about 3 to 4 weeks to complete. Since signing and negotiation often involve various stakeholders, a lot of time is wasted going through multiple review processes.
Utilizing artificial contract intelligence in contract lifecycle management integrates every step of a contract’s lifecycle onto a single interface, allowing you to redline, negotiate, compare versions, and sign faster than ever. Since AI enables you to complete the process on one platform, you can shorten timelines significantly.
Actionable insights on the obligations
Intelligent contract lifecycle management has the capacity to sort through various agreements and report data on their performance and adherence to obligations. This allows your business to get the full value out of your arrangements, as you can use these insights to ensure that you are meeting your obligations.
AI includes KPIs, SLAs, and other parameters in its report to help your business determine what areas need improvement.
Your business gains higher visibility into its agreement repository by utilizing intelligent contract management software. This enables performance tracking, optimizes obligation management, and boosts overall contract compliance. Through features such as customizable notifications, reminders, and customizable dashboards, you can ensure that your business is always on top of its agreed-upon terms.
Making better decisions for future contracts
Intelligent contract management software helps your business make more informed decisions regarding future contracts. This is achieved by using machine learning capabilities and advanced analysis of agreement performance to strategize and determine the best way to implement similar agreements in the future.
The benefits of artificial intelligence contract management software to boost CLM
Businesses that utilize artificial intelligence-powered contracts are better equipped to enter more advantageous agreements while putting less effort into doing so. Since intelligent contract solutions mitigate human interaction in the management process, it gives your business the resources to acquire new clients, improve business relations, and, most importantly, grow your company. When you use AI to leverage your management process, you’ll be one step ahead of your competitors.