Would you like to catch up a glimpse of our information-rich session on how AI-driven insights can transform your contract authoring and management process and accelerate time-to-value by driving contracting excellence? Can't wait anymore?
Watch the demo portion wherein our experts showcase 5 use cases of AI in CLM with Aavenir Contractflow and introduce iAsk.
To know the key insights, keep reading!
Driving Contracting Excellence with AI in CLM
Contracts are integral to any business operations, not to forget their role as connecting points in the entire source-to-pay process. Contracts use a lot of data that can drive value and boost ROI. Also, since a contract is never a single document; it's the collection of all complex contract documents - exhibits, amendments, terms, clauses, obligations, etc.
Considering most of the business value is hidden in the contracts, how can a CLM Solution help deliver that value to the stakeholders? Hence, it won't be overrated to say that contract management is the only process that collaborates with all other departments that are embedded in the agreement, like Legal, Finance, Sales, IT, HR, Procurement, and others.
Key Contract Management Challenges
Image-1: Common problems experienced by contract managers
Are you also one of them?
There are many urgent contract management problems that organizations need to solve; a few of them are listed below:
- Hiccups in coordination with global stakeholders
- Wastage of time, resources, and value with heavy back and forth at each stage, from requests to renewals
- Lack of integrated systems resulting in lack of end-to-end visibility
- Manual procedures that cause delays, mistakes, and lost opportunities
- Disconnected and inflexible systems result in limited transparency and control
- Unclear responsibilities due to no notifications of terms, rights, or obligations
Most contract management challenges are related to the volume of contracts, connectivity, and manual processes. Is there any practical way to deal with these challenges? Yes, of course. AI and automation can bring dramatic changes and drive contracting excellence in your organization.
Role of AI in Driving Contracting Excellence across Contract Lifecycle Management
A smarter and more efficient contract management system, like AI-enabled Aavenir Contractflow, can come to the rescue and address all these challenges.
AI can precisely keep your contracts LIVE in your system and not just let them stuck somewhere unattended in your repository. AI intelligence in contract management can extract insights and deliver intelligent analytics. If we talk about Aavenir Contractflow, the Aavenir AI Engine is powered with Generative Pre-trained Transformer 3 (GPT-3), an autoregressive language model that employs deep learning to produce human-like text.
Image 2: How AI language modeling works?
AI and machine learning can identify risks and opportunities from the hidden complex language of contracts. AI can act, think and sense as humans do. With AI, users can compare specifics like dates, times, and clauses with other contracts to find similarities or deviations by narrowing their attention to the most critical portions of a contract. AI can play a crucial role in end-to-end contract lifecycle management.
However, it all depends on the AI maturity level your organization has adopted. To be effective and agile, you need to know where you are – exactly – in your AI journey. Are you brand new to the process; are you halfway there and need to pivot; are you ready to accelerate your journey to realize the full potential of AI-driven contracting excellence?
Aavenir has put together a part of its Contract and Obligation Maturity Assessment and simplified AI Maturity Model in your CLM journey in three simple steps called 3Es - Extract, Empower and Enhance.
Image-3: Aavenir defined AI Maturity Model for CLM
1- Extract - Contract Metadata Extraction
AI can bring legacy contracts and third-party papers to life. Reviewing a vast volume of legacy and third-party contracts involve significant manhours of your legal team. With intelligent AI metadata extraction, the legal team can minimize the contract review time, boost review accuracy, and accelerate renewal and negotiation processes.
Here's a glance at the most common types of metadata extracted to enable effective contract administration.
Image-4: Frequently Requested and Extracted Contract Metadata
Identification and extraction of metadata help identify risks before they occur and analyze opportunities before they are lost.
Aavenir AI Engine extracts key contract metadata from multiple formats of contracts (.PNGs, .BMPs, .TIFs, .JPGs, .PDFs – image or text-based) in no time with the highest accuracy. In addition, all compliances and deviations are identified and extracted with beyond-industry-best accuracy.
Aavenir capabilities on AI metadata extraction with high-confidence
2 - Empower - Smart Suggestions and Guided Contract Authoring
AI can go beyond the identification and extraction of key terms and clauses. Not only can AI help detect deviations in language, clauses, and terms; it can also suggest appropriate terms and clauses which makes normal contract authoring, smart and guided. Moreover, the smart search functionality can go beyond standard keyword-based search and provide intent-based search results.
Aavenir AI engine not only suggests smart recommendations based on the contract repository of active contracts and standard clause library but also considers risk identification. It suggests the terms, clauses, and language that may cause contracting risk and highlight the best suitable alternative term/clause.
Aavenir Contractflow identifies opportunities, obligations and compliance, deviations, missed clauses, etc., and offers smart suggestions to author and manage your contract effectively. In addition, it boosts process efficiency by allowing flexibility to add or delete terms and clauses and accept or reject suggestions. Basically, it empowers contact authors and negotiators with augmented intelligence that helps stakeholders get better insights into what to include and how to negotiate.
How does Aavenir Contractflow curate the most negotiated clauses and empower contract authors for guided and smart contract authoring?
3 - Enhance - Advanced Obligation and Compliance Management
When it comes to AI in CLM, the opportunities are endless. The role of AI is not just limited to extracting information and providing intelligent analysis of that information. In fact, it can help maintain compliance on day to day basis in line with your contract requirements. It can take contract performance management to the next level by offering insights into the assessment, mitigation, and management of compliance risks. It highlights most negotiated terms and clauses and deviations in clauses. AI can accurately present all line item data in an actionable, reportable format.
Aavenir Contractflow enables you to perform a smart search across your contract repository. Furthermore, terms, clauses, obligations, and deviations can be extracted, validated, and compared side by side. It also has a visualizer feature that showcases most negotiated clauses, most terms used across contracts, deviations in clauses, missing clauses, etc. - all these with the flexibility to add, replace or remove options. It directly allows you to assign extracted obligations to task owners and notify task owners to perform those obligations so that compliance is never missed.
The highlight of the session: iASK is a feature that allows users to ask a contract or repository a question, saving hours for legal and procurement teams to locate that key yet hidden information. For example, if you type in if any particular contract contains a Force Majure clause, iASK can highlight and list all the contracts that fall under the searched criteria and required actions, if any.
Wait a Minute
Before you leave, catch a glimpse of our recent demo on how the Aavenir AI engine empowers Contractflow users in key 5 areas - terms, clauses, obligations, deviations, and visualizations.
