Do you know that the data in your contract management systems contain much more value than you are currently deciphering? In fact, daily procurement contract operations generate a lot of data with untapped potential, which lies in a variety of your system, and may be helpful for legal and vendor management teams.
Drive Excellence in Legal Operations with AI-enabled Contract Analysis
McKinsey & Company reports that 90 percent of annual revenue across industries is documented in contracts.
To get the total value of your contract data, you need proper AI-driven contract analytics that can extract insights and provide a digital view of your contract, including deep insights into your clauses. Legal and procurement professionals can achieve this with contract metadata extraction and verification, clause sentiment analysis, and semantic search that improve complex contract management workflows.
How Can Legal Teams Harness the Full Value of Contract Data
Legal teams in most organizations have come way far from maintaining records in a spreadsheet. Although legal tech adoption has only helped a little in automating the process, it has delivered the ability to organize, sort, and manipulate data to be extracted and collected manually.
On the one hand, various process automation and contract management tools are undoubtedly earning good traction and catching the eyeballs of legal and procurement professionals. On the other hand, using technology to draft, store, review, and analyze contracts has continuously improved for a few decades. However, the pace has significantly scurried in the last 5-7 years. One of the significant observations is, the traditional tools are now focused more on automating mundane tasks like contract authoring and storing them in a centralized contract repository.
But, is that all we need? The need in the current scenario is way beyond this. Legal and procurement teams need more detailed and accurate insights at their fingertips, which many a time are hidden in complex contract language. In short, you need a mature AI-enabled contract management solution that provides contract analytics based on natural language processing (NLP).
What Role AI Can Play in Legal Services Delivery and Contract Management
AI can have multiple use cases in legal services delivery and contract management. From contract intake and authoring to contract review and negotiation, AI can help extract insights and provide the right guidance at every stage of contract lifecycle management.
Using AI to Extract Insights from Unstructured Third-party Contracts. Read More>>>
- NLP can extract key information from your contracts quickly and easily
- AI-enabled workflows analyze contracts, extract key clauses, identify obligations and assign tasks for fulfillment
- It not only processes the complex legal language but also simplifies and provides accurate smart suggestions
- Semantic search helps you narrow down your options and provide intent-based search results from the ocean of contracts stored in your repository
- AI can also compare clauses from unstructured data, identify the areas that need attention during review and negotiation, and thereby help legal teams overcome the challenges of unmanaged risks and lost opportunities
Basically, AI-enabled contract management has three potential areas, which you can refer to as the (3Es) i.e.
- Extract - Metadata Extraction
- Empower - Guided Contract Authoring
- Embrace - Advanced Obligation Management
These THREE areas define your path to AI adoption in your organization.
How to Determine your AI Maturity Level in Your CLM Journey
Though several obstacles stand in the way of implementing and transforming businesses with AI, more and more businesses are enthusiastic about it. Where does your organization stand in the AI maturity model? Are you ready to embark on a journey of your CLM transformation? Are you excited to learn more about how the Aavenir AI engine works and why it is the best in the class?
Looking for more insights on how to get the best of your CLM solution? Register for this exclusive LIVE webinar wherein our experts Sunil, Anand, and John share insights on unlocking the hidden contract value with AI-driven Contract Authoring on ServiceNow.
