Contract AI Tools bring together the best in Human and Artificial Intelligence

mediumThis post was originally published by at Medium [AI]

Contracts are a source of valuable information in the event of disputes, renewals, or certain strategic decisions. They need to be maintained and tracked to ensure obligations are met by all parties involved. Despite their importance, it is no secret that contract lifecycle management (CLM) is something that most companies don’t do very effectively. It’s understandable why this was the case in the past — it needed to be done manually, which is cumbersome, time-consuming, and prone to error.

AI in contract lifecycle management

Processes within CLM where AI tools are being currently deployed include drafting, negotiation, review, and post-execution management.

  1. Contract Drafting: AI tools can be used during the drafting for standardized contract templates that contain the appropriate language so it need not be done from scratch each time
  2. Contract Review and Negotiation: There is a lot of scopes to automate parts of the contract review process, including reading, identifying predetermined concepts, extracting relevant information, and presenting the data in easy-to-read formats. While lawyers are still needed to go through the specifics, using an AI tool shows them where exactly they need to focus their attention.
  3. Contract Post-Execution: The work doesn’t end with a contract being signed. Keeping on top of obligations and terms (such as payments, deliverables, and due dates) can be a nightmare since companies have thousands of contracts to track.

Contract AI + Human Intelligence:

AI is still in its infancy in the legal space, but there are numerous tools being introduced to help automate multiple aspects of the legal processes. These tools need quite a bit of calibrating and “training” to eventually learn what to do, which requires people with the relevant experience — specifically contract management specialists.

Read more about Contract AI platforms and how human intelligence play a critical role in training the AI systems

[Featured image by Scott Graham on Unsplash]

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This post was originally published by at Medium [AI]

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