Legacy contract migration can be a daunting task for organizations, often burdened with heaps of outdated contracts and manual processes. However, the advent of artificial intelligence (AI) brings transformative capabilities to streamline and automate the contract migration process. In this blog, we will explore the challenges faced during legacy contract migration, key statistics that highlight the need for AI-driven solutions, the role of AI in contract migration, and how Aavenir Contractflow built on the ServiceNow platform, offers a powerful AI solution for efficient and accelerated contract migration.
Key statistics driving the need for AI in contract migration.
- According to Gartner, AI will be a critical component of 80% of all digital projects by 2022.
- Deloitte reports that AI-driven contract analysis and migration can reduce costs by up to 60% and increase contract processing speed by 70%.
- The International Data Corporation (IDC) predicts that the global AI market will reach $190 billion by 2025.
Third-party or legacy contract migration challenges
Migrating legacy contracts poses numerous challenges for organizations, including:
High data volume
Organizations often have a massive volume of legacy contracts that need to be migrated, making it a time-consuming and resource-intensive process.
Manual data extraction and entry
Extracting contract data from disparate sources and manually entering it into new systems is error-prone and can result in data inconsistencies.
Complex contract structures
Legacy contracts often have intricate structures, with varying sections, clauses, and amendments that require careful analysis and mapping during migration.
Incomplete or missing information (metadata)
Legacy contracts may lack structured metadata, making it difficult to categorize and search for specific terms or provisions.
Regulatory compliance
Ensuring compliance with evolving regulations while migrating legacy contracts adds an additional layer of complexity.
What are the AI capabilities of Aavenir Contractflow for Contract Migration?
Aavenir Contractflow’s AI brings in several capabilities to contract migration, such as:
- Accelerated data extraction: The machine learning and Aavenir AI-powered algorithms can automatically extract key contract terms from legacy contracts, eliminating the need for manual data entry and significantly reducing migration time.
- Intelligent data mapping: Aavenir AI analyze and maps contract clauses, terms, and metadata to new contract templates, ensuring accurate migration and maintaining contractual integrity.
- Enhanced data accuracy: Aavenir AI algorithms identifies and corrects data inconsistencies, errors, or missing information during migration, resulting in improved data accuracy and reliability.
- Automated compliance checks: Aavenir AI can perform comprehensive compliance checks during contract migration, flagging potential risks or violations and ensuring adherence to relevant regulations.
What is the process for AI-powered contract migration?
The process for contract migration with AI typically involves the following steps:
- Data extraction: AI algorithms extract relevant data from legacy contracts, including clauses, dates, parties, and metadata.
- Data validation and cleansing: The extracted data is validated, cleansed, and standardized to ensure consistency and accuracy.
- Contract mapping: AI algorithms map the extracted data to the desired structure or template in the target system, aligning clauses, sections, and other contract elements.
- Metadata enrichment: AI enriches the contract metadata, making it easier to categorize, search, and retrieve specific contract terms or provisions.
- Compliance and risk analysis: AI performs automated compliance checks, flagging potential risks or violations based on predefined rules and regulations.
- Migration and integration: The migrated contracts are seamlessly integrated into the new system, ensuring a smooth transition and continuity of operations.
Why choose Aavenir Contractflow to streamline your contract migration with AI on ServiceNow?
Aavenir Contractflow, a cutting-edge AI-powered contract management solution built natively on the ServiceNow platform, offers suite of contract management features specifically designed for efficient contract migration. Some key features include:
- Intelligent contract data extraction: Aavenir Contractflow's AI algorithms extract contract data accurately and swiftly from legacy documents, significantly reducing manual effort and time.
- Automated contract mapping: The solution intelligently maps extracted data to new templates or structures, ensuring seamless migration while maintaining contractual integrity.
- Smart data validation: Aavenir Contractflow validates and cleanses extracted data, automatically identifying errors or inconsistencies for quick resolution.
- Compliance monitoring: The solution performs automated compliance checks during migration, ensuring adherence to relevant regulations and minimizing risk exposure.
- Seamless integration: Aavenir Contractflow seamlessly integrates with ServiceNow, providing a unified platform for end-to-end contract lifecycle management and migration.
How much time is required for contract migration?
The time required for contract migration varies based on the volume and complexity of contracts. However, leveraging AI-powered solutions like Aavenir Contractflow can significantly reduce migration time compared to traditional manual methods.
Common types of contracts suitable for migration
Aavenir Contractflow supports the migration of various contract types, including but not limited to:
- Purchase Agreements
- Service Level Agreements (SLAs)
- Non-Disclosure Agreements (NDAs)
- Software License Agreements
- Vendor Agreements
- Employment Contracts
- M&A Contracts
- And more
Next steps
Legacy contract migration can be complex and time-consuming, but with Aavenir Contractflow, organizations can streamline the process, reduce errors, ensure compliance, and accelerate the migration timeline. Embrace the power of AI in contract migration and experience the transformative benefits of efficient contract management.
To learn more, request a demo of Aavenir Contractflow.
