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Stop Reading Contracts, Part 3: How Customizable AI Drives Accuracy & Precision

May 8, 2024

Effectively managing an organization’s entire universe of contracts can be a monumental task. And depending on how one defines “effectively,” it can be an impossible task if using traditional methods.

Those time-honored manual processes are rapidly becoming extinct among modernizing legal and procurement departments. That’s due to the fact they’re often time-consuming and error-prone, and struggle to accommodate the nuances specific to your organization. 

This is where customizable AI in contract lifecycle management (CLM) rises above other contract management technologies. By leveraging cutting-edge AI and tailoring it to your unique needs, customizable contract AI empowers legal teams to achieve unprecedented levels of precision, efficiency, and risk mitigation in contract management.

This is crucial for competitiveness and performance, since many enterprises see significant contract value erosion due to a host of factors including inefficient contract processes, weak contract drafting and negotiation, poor contract management, and limited visibility and analytics when it comes to their contract data.

What is “customizable” contract AI?

Imagine a contract analytics solution that not only understands contracts but also recognizes the specific terms and clauses that matter most to your organization. 

Customizable AI solutions can accomplish this because, unlike generic AI tools, or off-the-shelf CLM solutions that are basically “digital file cabinets”, a tool designed to be adapted by users unlocks the ability to train your own custom AI models on your organization’s contracts – to track fields and clauses that are relevant to you.  

This opens up deep insights by extracting industry-specific terms, surfacing language that poses regulatory risk, and capturing terms that affect different departments within your organization. And it saves you valuable time and money.

The benefits of customizable AI

What are some of the specific key benefits of a customizable contract AI beyond what pre-trained AI can provide?

Accurate tracking of key terms

No longer will crucial contract data be overlooked. Customizable AI meticulously analyzes your contracts, pinpointing the specific terms that are most relevant to your organization. This ensures you have a comprehensive understanding of your contractual entitlements and obligations.

Industry-specific term extraction

Is your industry subject to unique regulatory requirements that need to be captured in your contracts? Customizable AI can be trained to recognize these nuances, ensuring accurate analysis regardless of jargon or legal terms specific to your business sector.

Streamlined search capabilities

Precision term extraction and tracking translates to simple and accurate search. Finding specific terms across your entire contract corpus becomes a task, not a project. Financial reporting becomes effortless. And contract remediation becomes a manageable undertaking.

Real-time intelligent dashboards

Customizable AI generates intelligent dashboards that automatically update with your most critical data. This real-time insight empowers legal teams to make informed decisions based on a real-time survey of the organization’s contracts.

Data-driven decision-making with advanced reporting

Customizable AI goes beyond basic dashboards. It unlocks advanced reporting capabilities so you can dive deeper into your contract data. And it allows you to configure these reports to provide key stakeholders with valuable insights, facilitating proactive risk management and ensuring your organization remains compliant with evolving regulations.

Risk mitigation

Imagine being able to automatically surface critical information buried deep within your contracts. Customizable AI can analyze your agreements as a collective whole, revealing hard-to-surface data points, unforeseen risks, and business opportunities that might have gone unnoticed during manual review.

Download our guide to Customizable AI, including real-world use cases from Microsoft, NetApp and more.

Cost savings through focused analysis

Manual contract review is not only time-consuming, but expensive. Customizable AI reduces your need for such manual reviews and outside counsel costs by automating the manual aspects of contract review. 

Faster revenue generation

Freeing your legal team from manual tasks gives them more time to focus on higher-value activities that directly impact the company’s bottom line, such as negotiating favorable terms and closing deals faster.

Real-world success stories:

  • Healthcare provider McKesson used contract management and analysis software to digitize their contracting processes to collaborate across systems, workflows, contracts, and teams.
  • Keller Williams Realty, the world’s largest real estate technology franchise, used AI-powered contract management and analysis to gain instant access to 10 years' worth of contract data to optimize cash flows.

Conclusion: Customizing AI equals extraordinary results

When considering adopting an AI-powered contract analytics solution, it’s important to consider whether the tools you’re evaluating can be customized to fit the needs of your business. 

The benefits – both in direct ROI and in giving your contracting and legal teams greater ability to impact strategic success – can be eye-opening if you’re deploying the right platform.

In our next post in this series, we’ll show how advanced contract AI unlocks ROI for your organization in many ways, some of them expected – and others surprising!

Find out how

Evisort

can help your team

Test Evisort on your own contracts to see how you can save time, reduce risk, and accelerate deals.

Related Resources

On-demand Webinar

FinServe Compliance using Responsible AI

Guide

Customizable Contract AI

On-demand Webinar

Contract with Care: How Healthcare Organizations Are Using Contract AI for Compliance, Finance, and Procurement

Find out how

Evisort

can help your team

Test Evisort on your own contracts to see how you can save time, reduce risk, and accelerate deals.