Every company that is serious about doing business always has to draw up or sign some contracts. Some people estimate that well-developed businesses are dealing with hundreds of contracts per year – some of them even thousands. An average Fortune 1000 company deals with 20 to 40 thousand contracts at any given time.
What’s troubling about it is the fact that many don’t pay enough attention to the contracts. Some don’t want to, while the others simply don’t have the time to – however, none of it is good for business.
While we understand that there are not many more monotonous and more tedious jobs than reviewing and analyzing contracts – it still has to be done. Failing to do so can have catastrophic results for the company. Not only can a company suffer substantial financial losses, but it could also end up in legal trouble.
Even if you are very precise and methodological in your work, contract analytics has always been a manual job. Like any other manual job, analyzing contracts is quite prone to errors. People get tired, they misread or misunderstand a portion of the contract, and that could get you in some major trouble.
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Introducing – Artificial Intelligence
What can be of help, though, is introducing AI in contract analysis. AI definitely seems to be one of the things that can be helpful in many situations, and this definitely seems like one. Just picture this scenario – your company is dealing with thousands of legally binding documents and contracts at any given time. That implies that at any given time, you must be able to access any of the ongoing contracts – for whatever reason.
When dealing with that many contracts, chances are, you have them stored in boxes somewhere in the office or in the cloud. As you could guess, those aren’t ideal conditions under by anyone’s standards. Just locating a single contract could take hours, let alone extracting relevant data from it. The problem is, no matter how important this is – it is still taken lightly, and we still rely on humans to do all of this by hand. Review the contracts, analyze the contracts, store the contracts – all of that, done by hand. Fortunately, there seems to be a light near the horizon – a bright light.
Artificial Intelligence is something that promises to change the world for the better in the years to come, but even today, we have some great applications for AI. For instance, analyzing contracts is ideal for AI. Not only is it a lot faster, but it is also a lot easier for AI analyzing software to comb through thousands of contracts.
In What Ways Is The AI Beneficial?
As we already know, many companies have storage rooms filled with contracts, or they store them safely on the cloud, in the digital format. However, storage is not the problem. The problem is locating, accessing and extracting relevant data from one of the contracts. Sometimes, that means combing through thousands of words before you get to the data you require. No matter how well-organized and structured this process is – it is just not efficient.
With AI, on the other hand, all of that is made much simpler, at least according to Thought Trace. With significant improvements made to AI and machine learning, software like this may be able to easily overcome the hardships humans face in these situations.
What may take hours upon hours of tedious manual work will only be a matter of seconds for the AI, but that is far from the only benefit you get if you apply AI solutions to your contract analysis.
Firstly, AI-powered solutions enhance accuracy by minimizing human error. The AI algorithms can swiftly identify and extract key terms, clauses, and obligations, reducing the risk of overlooking critical information. Additionally, AI tools can detect patterns and anomalies in contract data, flagging potential risks or discrepancies that might otherwise go unnoticed.
Furthermore, AI can assist in contract management and compliance. By analyzing a vast volume of contracts, AI can help identify trends, extract insights, and provide valuable information for decision-making. This empowers companies to make informed choices, optimize contract performance, and mitigate legal and financial risks.
Moreover, AI solutions offer enhanced security and data privacy. With proper encryption and access controls, sensitive contract information remains protected, ensuring compliance with privacy regulations.
The application of AI in contract analysis revolutionizes the way businesses handle their contractual obligations. It streamlines the process, improves accuracy, facilitates compliance, and enhances data security. By embracing AI solutions, companies can unleash the full potential of their contract management and unlock significant competitive advantages.
It Saves Time
The most obvious benefit you get from AI-powered software is obviously saving time. A machine can do a lot more than we can in the same amount of time – especially when it comes to something as delicate as analyzing contracts.
With AI, you can forget about combing through lines of confusing legal lingo and looking for the relevant piece of information in the document. With AI, you just need to enter what you’re looking for, and the program will do all the work for you. More importantly, it will get the job done without errors.
If you leave all the tedious and time-consuming tasks for software – you’ll have more time on your hands. With more time on your hands, you can devote yourself to the more important aspect of contract analysis, like doing the work that has higher strategic value. By devoting your time to the work that is far more meaningful to the company, you’re making the most of your time, you’ve become more productive and proactive, which ultimately just means you become more efficient.
ROIs are very important in business, and when you have almost an immediate return on your investment – that means you’ve done the job right. With AI-powered software, your investment turns into results instantly. Most of the software is incredibly easy to set up, and it can be running in a matter of hours – which means you get results pretty much right away.
If you’re making money instead of spending money – you’re doing great business. And, if you’re spending money to make money – you’re doing it the right way. With AI contract analyzing software, not only will you be cutting down the operational costs by eliminating the need for contract handling personnel, but you’re also investing into a software that is only going to get better and more efficient in time, which means, It will continue saving you money in the future as well.
Easy And Deep Data Extraction
Sometimes you need a piece of vital information or a solution hidden in the sea of words, possibly in the fine print section of the contract. With advanced, AI-enriched contract review and analysis solutions – you’ll be able to do that in a matter of moments.
You’ll be granted instant access to every aspect of the contract, from granular details like expiration dates or indemnity, to whatever else you might need at the moment.
As you can see, AI can help you comb through the contract and analyze its content in a matter of moments. If that alone isn’t good enough to invest in this tech – we don’t know what is. Hopefully, you’ve found this informative and are at least interested in entertaining the possibility of getting advanced, AI-powered contract analysis software.