Contract Analytics – Leveraging AI to Extract Key Insights From Legal Agreements

Contract analytics uses advanced document processing technologies like ML, NLP, and OCR to quickly and efficiently analyze contracts. The best solutions work out of the box, with minimal model customization and a high accuracy rate.

AI-powered contract analysis software can also observe workflow patterns and automatically adjust them to improve efficiency. For example, if a standard contract consistently bypasses legal review, it can be set to suppress that action in the future.

AI-Powered Contract Management

According to a study, flawed contract terms can siphon off as much as 9% of a company’s revenue. Legal departments must be able to identify potential issues and resolve them quickly.

The best way to do this is by leveraging AI technology, such as contract analytics. A practical solution can automatically review contract documents and contracts, identifying critical information, such as risks, opportunities, and obligations. It can also help track compliance, renewals, and expiration dates to mitigate risks and ensure organizational success.

Ideally, an automated contract analysis solution will require minimal model customization and be capable of performing new tasks on demand. For example, suppose an organization needs to address challenges like changing data privacy laws. In that case, the AI can be supplied with sample-approved language, and it will search all the existing agreements for similar clauses. It can then report back on the results, helping to make the necessary revisions. This makes for a faster, less expensive solution than a manual review process.

AI-Powered Contract Analytics

Contract intelligence software transforms the way you look at your legal agreements. It converts all documents to easily searchable text, accelerating AI analysis. Then, it automatically recommends clauses and templates based on best practices and performance. It can even monitor and send automated alerts associated with contracts’ obligations, risks, and opportunities.

Contract analytics leverages state-of-the-art learning algorithms to collect, organize, and synthesize data much faster than a team of humans can. This frees up valuable time for high-value interpretation and strategic work.

Unlike manual audits by in-house teams or outsourced legal services providers, AI contract analysis delivers consistent, accurate, and comprehensive reviews. This is made possible by the software’s use of ML, natural language processing (NLP), and optical character recognition (OCR). These technologies are continuously improving through ML to identify important metadata within a contract more effectively and consistently. This information is then used to automate and streamline contract management, such as e-signature integration, compliance checks, and other workflows.

AI-Powered Contract Search

Keeping track of contract terms and performance requires access to accurate information. But this data can be hard to find. It can be trapped in scanned contracts or old documents stored as read-only images. Savvy legal teams rely on OCR to convert these documents into text, allowing them to feed AI for analysis and automate contract workflows.

This enables a rapid contract review process that can scan thousands of agreements in the same amount of time as it takes humans to do manually. It also enables business leaders to ask questions about their contracts and discover answers—such as how a supplier may impact operations or what the terms of a certain deal could be.

As a result, businesses can identify and resolve issues before they escalate, optimize their current contracts to improve supply chain performance, mitigate risks, and make better decisions using contract analytics. This is a robust and scalable way to use AI to drive real, tangible value across the organization.

AI-Powered Contract Integration

Contracts are at the heart of every business, and legal teams must be able to find the right data points to maximize resources, mitigate risks, and fuel growth. Yet, most organizations need help finding the time and resources to perform this analysis manually.

Using deep integration with existing systems, AI can automate contract analysis, reducing cycle times and freeing up staff to work on more pressing tasks. It can also spot opportunities to save money or increase revenue, flag ambiguous language for legal review, and even alert specific teams when terms change.

Whether monitoring supplier KPIs, looking for cost savings, or tracking compliance/regulatory issues, AI-powered contract analytics delivers the information you need in real time. It is not only faster than a human review but also more thorough. The results can be delivered to all stakeholders across your organization through a single, intuitive interface.