The Applications of AI in Contract Management

<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Contracts are the cornerstone of a successful company&period; Unfortunately&comma; many businesses fail to recognize the importance of airtight contracts and lose time and money dealing with legal issues due to improper <&sol;span>contract management<span style&equals;"color&colon; &num;0e101a&semi;">&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Large companies typically have a <a href&equals;"https&colon;&sol;&sol;newsforpublic&period;com&sol;contract-management-process&sol;">high volume of contracts to keep track<&sol;a> of from employee contracts to vendor agreements&comma; and the sheer number makes organizing&comma; updating&comma; and tracking these contracts extremely difficult&period; Most companies do not have a centralized storage location for all of their different types of contracts&comma; let alone an efficient way to extract data&comma; and companies can waste hours of work searching for a single piece of information&period; Today&comma; more and more companies are turning to <&sol;span><a href&equals;"https&colon;&sol;&sol;www&period;evisort&period;com" target&equals;"&lowbar;blank" rel&equals;"noopener">AI contract management<&sol;a> software<span style&equals;"color&colon; &num;0e101a&semi;"> to track and monitor their legal agreements&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<h2 style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Centralized Storage and Analysis <&sol;span><&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">In the past&comma; contracts were typically stored in multiple locations and were manually managed by a legal team&period; Document storage software has existed for years and has helped companies store and organize their legal agreements&period; However&comma; the implementation of AI in contract management raises the bar for what a contract management tool can do&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Not only does AI contract management software provide companies a centralized storage location for all of their legal agreements&comma; but it can also identify different contract types based on keywords&period; Also&comma; it can train its algorithm to detect patterns and extract critical information from each contract&period; This makes locating separate contra<a name&equals;"&lowbar;GoBack"><&sol;a>cts and identifying important information faster and more straightforward&comma; saving the company hours of work&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;">AI contract software management<span style&equals;"color&colon; &num;0e101a&semi;"> gives companies the ability to sort contracts based on the <&sol;span><a href&equals;"https&colon;&sol;&sol;www&period;digitalistmag&period;com&sol;finance&sol;2018&sol;04&sol;05&sol;evolution-of-contract-management-from-repository-to-ai-06033365" target&equals;"&lowbar;blank" rel&equals;"noopener">parameters<&sol;a><span style&equals;"color&colon; &num;0e101a&semi;"> they find most valuable&comma; like renewal dates&comma; specific clauses&comma; or the type of contract&period; AI can review contracts and make sure company policy is being followed as well as point out any discrepancies&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">AI software can also provide analytics about different contracts in minutes that would take a team hours to complete&period; For example&comma; a company can analyze all of its vendor contracts and pick out variations in terms and conditions as well as penalty and damage provisions&period; Moving forward&comma; AI can then standardize these provisions and make it easier for a company to quickly recognize and stop instances of noncompliance from their vendors that may have previously gone unnoticed&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">As an AI contract management software continues to learn&comma; it can effectively negotiate prices by first analyzing the market and adjusting future vendor pricing based on supply and demand&period; Using machine learning&comma; companies can go into the contract negotiation phase armed with relevant data to support the prices they demand&period; AI can also be a great tool to help companies budget and plan future business ventures as it can help predict future earnings based on past performance data&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<h2 style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Reminder Tools<&sol;span><&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">With AI contract management software&comma; the days of forgetting a contract’s expiration date and failing to renew in time are over&period; With AI&comma; contract managers can set reminders to notify them of upcoming expirations dates&comma; so they have time to start the renewal process&period; AI can also pull renegotiation terms so companies can limit the risk of <&sol;span><a href&equals;"https&colon;&sol;&sol;www&period;ft&period;com&sol;content&sol;294d0c1c-d613-11e9-8d46-8def889b4137" target&equals;"&lowbar;blank" rel&equals;"noopener">contract disputes<&sol;a><span style&equals;"color&colon; &num;0e101a&semi;">&period; AI software can manage the entire lifecycle of a contract from the writing stage to the renewal process&period;<&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<h2 style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Automated Contract Clause Suggestions<&sol;span><&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Because artificial intelligence learns as it works&comma; it can start to pick up on repeat language that appears throughout your company’s contracts&period; It can then suggest clauses to keep terms and usage consistent across contracts&period; AI software can even detect discrepancies between different contracts and instances where your company may be noncompliant&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">AI also speeds up the process of drafting new contracts and can save your company time and money by speeding up the writing process&comma; leaving more time for complex negotiations that can’t be done by a computer&period; AI systems can also scan legal documents and flag language that puts your company at risk&period; It will then suggest alternative clauses to safeguard your organization&period; <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Educated legal professionals within a company spend too much time doing basic administrative work or coding&comma; which requires no specialization&period; AI software management tools allow your company’s legal team to focus on applying their training and expertise to your company’s complicated legal problems rather than administrative work&period;<&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;"> <&sol;span><&sol;p>&NewLine;<p style&equals;"margin&colon; 0in 0in 0&period;0001pt&semi; text-align&colon; justify&semi;"><span style&equals;"color&colon; &num;0e101a&semi;">Contract management can be repetitive and tedious&comma; but its importance within a company cannot be overstated&period; AI is changing contract management by streamlining operations and improving a company’s overall efficiency&period; The time saved from using AI software can save your company money while freeing up the creative capabilities of your company’s workforce&period; <&sol;span><&sol;p>&NewLine;