As contract analysis is a key component of the contract management process more and more businesses are turning to artificial intelligence to maximize efficiency. The ability to extract key contract data points from large volumes of contracts simultaneously within minutes is just one advantage of using AI powered contract management software.
More and more companies these days are touting contract review software systems, but they’re not all created equal. Traditionally, the status quo method for legal review is flawed. It’s time intensive, costly, and inefficient. Cutting-edge machine learning built into the very brain of contract review software offered by companies like Evisort is revolutionizing the contract review process across a broad spectrum of industries, from legal to finance.
Today’s key AI features, all in one contract management systems, can speed up the process of everything from due diligence and clauses to contract provision extraction and change of control..
What’s Wrong With Traditional Contract Review?
For the purposes of our examples, let’s examine the contract review and document management within the legal profession. Although much contract review is performed by general counsel, a bulk of it is also currently performed by in-house contract administrators of different levels of expertise. Junior employees will typically make the first attempt at reviewing contracts which includes reading agreements to search for set information, i.e., agreement terms, contract originator, insurance provisions, term of the contract, deadlines, indemnity clauses, change of control, etc.
These employees then put their findings into summary charts, which take on various forms including summarized provisions, answers to questions, and organized lists of verbatim clauses. Next, these results are spot checked by mid-level associates in the legal departments for first review. Missed provisions, nonconforming provisions, dates, and other mistakes are often revealed at this stage.
By the time the problems are fixed and are reviewed by the higher-up approval process again, precious time has been wasted that could have been better spent elsewhere.
In conclusion, the manual, non-software-based contract review process is:
- Prone to human error
- Generates initial results that aren’t as useful on second glance.
How AI Features Improve the Contract Review Process
From data identification and extraction to risk visualization and increased accountability, there are many ways that artificial intelligence improves contract management. Rather than replace the duties of employed human beings, rendering the workforce obsolete, AI assists professionals by performing the many demands of their roles so that positions can be streamlined into more strategy-based ones, says Towards Data Science.
Artificial intelligence in contract management is designed to enable humans to focus on making educated, informed decisions and strategizing with a better understanding of contract risk. It helps professionals embrace smarter contract management by streamlining their data input, analysis, reporting, and risk identification tasks through the use of automated data entry and risk assessment mapping and mitigation.
AI-based contract management software supplies the building-blocks that contract management professionals need to improve contract oversight, advanced understanding of contract risk, and proactive opportunity realization.
Let’s face it: contracts can be incredibly complicated and complex, and technology has not reached point where it can completely or reliably understand an ambiguous contract, agreement, or supporting document. Yet, AI can enhance and support legal teams by enabling them to complete their jobs more quickly and efficiently, with the ability to determine negative outcomes or positive opportunities.
Contract review software not only helps users review contracts faster and more accurately, but it also helps legal professionals to better organize the process and results. A good contract management solution should include features that allow users to easily locate information in contracts, collect findings into summary charts, and refine or organize results.
For instance, Evisort’s contract review software, streamlines contract workflow using advanced AI to extract, track, and classify key provisions within documents that are delivered through a cloud-based platform. Users are able to easily upload all types of contracts and then access, monitor, search, deliver results, and run reports across all lines of business.
Why Implementing a Contract Review Software System is Worth It
- Reduce redundancy: People spend far too much of their work time in the document review process, sorting through legal documents. Change of control. Term. Assignment. Indemnity. Insurance coverage requirements. Manual contract review is slow, error-prone, and fails to generate useful results consistently.
- Searchable details: Contract management databases can break out details of all relevant contracts in a searchable way, enabling greater access to information across a business to help mitigate risks.
- Spend more time on the important things: Spend more time on contract negotiations, communication & improving vendor relationships. Reduce your contract risks and identify potential problems quicker.
The bottom line is that a database is useless without the data in it. Many contract management systems only provide tools that help with the creation of new contracts, but most companies already have large numbers of contracts that need to be inputted into the contract database. Evisort provides you with the tools and integrations to easily import or upload documents from a wide range of sources and automatically convert them to machine readable text.
Locating and pulling data from contracts to add into a contract management database takes time. A system that can do this automatically helps legal professionals handle the contract process faster, more efficiently and, above all, more accurately.
Evisort’s solutions are at the forefront of the contract review software revolution. Keep ahead of legal issues, make your life easier, and embrace the benefits that AI and machine learning can offer. Contact us for a free demo to see how our contract management solution would be right for you.