Artificial intelligence (AI) is currently one of the hottest buzzwords in tech and with good reason. AI refers to systems or machines that mimic human intelligence to perform tasks and can iteratively improve themselves based on the information they collect. AI is important because it can give enterprises insights into their operations that they may not have been aware of previously and because, in some cases, AI can perform tasks better than humans. Particularly when it comes to repetitive, detail-oriented tasks like analyzing large numbers of legal documents to ensure relevant fields are filled in properly, AI tools often complete jobs quickly and with relatively few errors.
Artificial intelligence (AI) has undoubtedly changed the way various functions in an organization operate. And contracting is not left behind. Using artificial intelligence, or AI, for contract lifecycle management will greatly change how CLM works. AI-powered CLM is quicker, more efficient, provides better insights, improves key performance indicators (KPI), and even primes the organization or company for further stages in contract management.
Here’s how these next-generation capabilities help the contract management process:
Previously, the only way to extract data was to do it manually. Now, we can use AI algorithms powered by NLP (natural language processing). This allows us to extract multiple components of a contract like signatures and dates with remarkable speed and precision. As an example, Scribe Zero enables customers to break a contract into its constituent clause blocks and make fresh contracts using the extracted clause blocks. Further, automated renewal alerts can be set up for contracts, which is of great value to organizations with huge contract repositories. Data discovery has always been challenging - you can search, compare, and classify contracts with ease. With AI, we can quickly recognize contracts' names and the parties involved and get more complex information such as deal terms, contract clauses, and other critical data that makes compliance and governance happen effortlessly.
A variety of benefits can be found throughout the entire process as a result of AI being used - users will be able to search for contracts that need signatures or other specific information and make corrections before the issues arise. Users can easily access information like contract terms and due dates without having to go through databases, thus improving their workflow in regard to contracts and saving time and money. When contract workflows are disorganized and ineffective, it results in wasted time and money. With true-blue contract management software, you'll be able to monitor tasks and have automation that improves productivity in your workflow. This is an amazing insight for someone overseeing contracts as it allows them to understand what delays the process, and whether each step is absolutely crucial. The cause for bottlenecks in their process - ultimately resulting in improved productivity for their company's contract management needs.
Putting all this information into one coherent, polished-looking digital platform gives users access to more data than just what’s in their contracts. It is possible as platforms such as Scribe Zero integrate with other software like CRM, HR, Sales, etc., which helps AI extract relevant data. For instance, Scribe Zero is capable of extracting termination dates which help users decide whether they want to renew a contract. Similarly, statistics such as compliance breaches could help justify discounts when the contract is up for renewal. When all this data is available without the difficult labor of managing databases, users can invest time and energy towards making intelligent decisions about their business and the entire industry.
AI-based platforms for CLM deliver consistent execution across the contract lifecycle, improve efficiency while drafting agreements, eliminate errors in the contract review process, and it also improves negotiating outcomes. As you grow your organization, the contract management process becomes increasingly complicated. AI can give your business an edge over the competition by creating smarter processes. These platforms go beyond better contract management and bring intelligent automation to every aspect of your enterprise.