Companies and organizations are often loaded with multiple agreements and contracts. Managing those contracts has become a significant task as it is critical for all the organizations to handle them in an effective manner in order to not lose out on big business opportunities. Managing those contracts has also been regarded as quite pertinent as it assists them in various compliances and due diligence tasks and ultimately direct to a penalty free operation in an organization.
While most of the law firms and lawyers or in house counsels are over-burdened with multiple contracts, it has become a task for them to complete and analyze each contract correctly within a short time frame. The question which comes up in front of the legal professionals is that how can it be dealt so as to complete the work of analyzing contracts without any error and within the prescribed period.
In order to review documents and analyze a huge chunk of contracts ranging across various industries, a clear understanding and visibility is primarily required to extract the relevant information and data which is required by the legal professionals. Since this work involves tedious reading skills for large amount of documents only to look for relevant and specific information, it becomes a little difficult for the human intelligence to undertake the task and complete it with maximized precision and quality.
Artificial Intelligence is a technique which is on the verge of over powering almost every imaginable sector or industry and the application of Artificial Intelligence tools have proved out to be quite effective and profitable for various industries. It can be presumed that AI can also help law professionals and lawyers to gain contract visibility and reduce the manual undertaking.
As contracts form a major portion of legal work available in the market, it does not seem viable and easy for humans to read the multi-page documents. Contract which is a strong way of creating faith/trust between two or more parties, it also contains those clauses which are related to payments, deliveries, time of work, other various obligations and so on.
Analyzing contracts can be quite exhaustive as it involves various stages such as checking for abusive clauses, searching for specific information like a dates, prices or volumes, and amending the information in a set of contracts. This entire process is highly time-consuming and exhausting. The biggest challenge which law firms and in house counsels are facing is to monitor these huge numbers of multi-page contracts.
AI techniques like machine learning have witnessed great success in performing tasks which were previously done by only humans. Notably, the use of AI tools such as deep learning has rolled into the active field of learning from huge amounts of data and information. As a result, Artificial Intelligence systems are being utilized as extracting software which can learn from organization’s data to quickly disclose valuable information and insights. Being able to get a quick display of a contract can augment the productivity and efficiency in the contract analysis of many businesses and organizations.
The use of AI in the area of contract analysis surely holds the potential to transform great working cultures of industries such as Education, Insurance, Finance, Investment, Real Estate and Automobile. Definitely, this AI technology can be deployed to any business and organization which use contracts and harness the benefits of such a resource-freeing tool. The use of Artificial Intelligence can definitely improve productivity and perform better risk analysis in contract management.
Artificial Intelligence techniques can help ensure that auto-classification of documents in the legal arrangement is done effectively and identification of specific information in the documents or contracts is easily done and implemented. It also assists in streamlining the process of contract review by managing data & relevant documents in the redlining process ensuring general position of an organization across contracts.
AI techniques can help industries in drafting significant attributes and process out all the obligations and standard clauses and ultimately disclose all the hidden risks and create alerts which eventually help industries or organizations to ensure that a regulatory framework is being followed.
The incorporation of Artificial Intelligence techniques can lead to an easier management of huge number of contracts as they can be read, analyzed, and reviewed with a lot more consistency and accuracy. With the assistance of AI tools, the scalability is also achievable irrespective of the size of workforce or the location of the organization.
Indeed, organizations have realized that there is a huge opportunity to expand their businesses and operations as AI software can be used for contract analysis which helps in generating huge revenues. Although a specific time frame has to be dedicated to train the models for a particular industry or contract, it is believed that the probable time and cost savings features attached to AI contract analysis solutions are absolutely significant leading to potential savings among law firms.