With the application of AI into our daily lives expanding with each passing year, it is but natural that businesses too are leveraging it to gain insights. From selecting the right customer-base to target, to product improvements or process automation, AI seems to have answers to it all.
Given that a typical enterprise deals with hundreds of thousands of contracts a year, surprisingly enough, AI has made limited progress in the legal department so far. All this, however, is now set to change, as businesses worldwide are realising the potential benefits of leveraging AI to enhance and support activities pertaining to Contact Lifecycle Management (CLM)
Hence, Moglix is here to tell you of 3 ways how AI process automation can help in simplifying contract management:
- Leveraging Machine Learning for Authorship: Just by having access to more data, computers are able to make better deductions and be able to give insights into previously unknown items by classifying them. Thus, Machine Learning today, can help legal firms in writing better contracts.
From cluster classification that can tell you what the content of the contract is, to detection of anomalies that can point out problematic clauses AI can simplify all the activities that are difficult manually when talking about scale. For example, suggestions for clauses for companies that have been frequent business collaborators on the basis of past contracts, or even suggestions of new clauses that can be added depending on the global market scenario, machine learning can be leveraged to create customized solution to all your contract management woes.
- Storage and Search Customization: Being a repository of documents, the modern CLM software can be a tough task to navigate through, if you’re only partially sure of the document you’re looking for. Traditionally such software may have limited search capabilities, wherein you really need to be specific in your search parameters for what you’re looking for.
With AI enhancing the search functionality, techniques like natural language processing and user information can help in adding context to each search which will help in accruing accurate search results.
- Gaining Actionable Insights: Apart from the legal requirement of storing contracts, AI can use all that information to analyse the data and give you actionable insights. With the sheer volume of contracts that companies go through each year, there is enough accumulated data for AI to mine through. By parsing through past contracts, AI can help in creating predictive models and also understanding issues like how a contract partner generally handles certain clauses or even how long does he generally to execute a deal at hand. By finding patterns in data, AI-enhanced software today can help in providing reports on both partners and contract clauses.
Not only is AI capable of improving contract management, but it also simplifies the work for people across the enterprise who are dealing with contracts. By the implementation of cognitive intelligence tools, an organisation can achieve anything ranging from the reduction of man-hours spent, to improving the accuracy of the process. Thus by not having to waste time and effort parsing through the information locked in manual documents, organisations can quantify their global property and excess liabilities with predictive analysis, solidifying the fact that contract management can truly benefit manifold from leveraging AI to its full potential.
What are your views on AI and its benefits when it comes to contract management? We’d love to hear from you in the comments section below.