“With the growth of AI… the use of text-based machine learning is now being applied to contracts, typically to assist in the management, extraction or review of legal agreements and their data.” Forbes
Artificial Intelligence (AI) has permeated nearly every facet of life including legal work, for the better. AI-powered legal tech such as contract review and contract management tools finetune and streamline processes in the contract lifecycle. With no errors, faster outputs, and zero downtime, AI-powered contract tools are the perfect addition to the savvy legal department’s toolkit.
Contract Review and Management Challenges
Legal departments are pressed for time and with the recession, are seeing their budgets being pressed beyond measure as well. While “Less Is More” seems to be the anthem during the economic downturn, how much can a corporate lawyer do before they burn out? This is where contract review and management tools come into play.
With growing volumes of legalease work, tighter budgets, and resources spread thin, legal departments may not have the bandwidth to go over hundreds of contracts without sacrificing quality or losing precious time and staying within budgets. Usually, legal departments may delegate contract review and management to individuals within the department or organization. These individuals may not have the legal background needed to thoroughly review or manage contracts.
Contracts are generally drafted with plenty of legalese and jargon that a layperson may not understand. AI-powered tools help bridge the divide so that all parties involved can set down their rules and for everyone to understand all terms and conditions as well.
How AI-powered Tools Solve Contract Review and Management Challenges
Speeds Up Contract Reviews
An AI-powered contract review tool utilizes “contextual analysis” to look up relevant information, saving you minutes, hours, or days! What used to be a manual and long winded process is simplified with AI-powered contract review and management software.
According to Lexology, you can quickly look up “entities involved in a specific contract, renewal dates of an agreement… specific clauses, and identify any unknown risks or clauses”. You can focus on strategic planning, business decisions, and pressing legal matters while the AI-powered contract review and management tools take contract processes off your plate.
Substantiates Contract Playbooks
Contract playbooks help streamline contracts and agreements and ensure they’re compliant with rules and regulations. AI-powered contract tools can compare clauses across contracts and agreements in your contract playbook. In addition, these tools can flag areas that need a compliance check. What’s more, AI-powered contract tools can produce a single checklist for several types of contracts!
Boosts Business Growth
With AI-powered contract tools, you can effectively boost your business growth. The tools streamline processes and mitigate risks associated with contract review and management tasks.
Human error such as oversight or negligence are eliminated, reducing bottlenecks in contract negotiations. You can get full transparency into the contract lifecycle management process from drafting to execution and beyond.
Visit LegalEase for more information.