AI Will Enhance Contract Management
Contracting is a common activity, but it is one that few companies do efficiently or effectively. Most firms don’t have a database of all the information in their contracts. It is often a stumbling block for companies: deadlines are missed, terms aren’t met, or renewals are forgotten or automated. Contracts have traditionally been a bottleneck in the sales process. In fact, it has been estimated that inefficient contracting causes firms to lose between 5% to 40% of value on a given deal, depending on circumstances.
Artificial Intelligence can help in improved organization and classification of contracts, keeping terms and usage consistent, as well as enable easy extraction of key information. This will result in fast search and informed decision-making. Beyond pure efficiency gains, AI really comes into play is in the realm of risk management. It can help in assessing risk in contracts by identifying terms and clauses that are suboptimal. It can also help in reducing the risk of human error in contract drafting and review. It can help monitor compliance and trigger specific actions based on the treatment of contractual obligations.
In this whitepaper, you will learn how AI can help in improving efficiency, risk assessment, reducing the risk of human error and monitoring compliance.