The use of Artificial Intelligence (AI) in contract lifecycle management (CLM) is becoming increasingly popular. AI-powered CLM solutions are helping organizations to automate and streamline their contract processes, resulting in improved efficiency and cost savings. With AI, companies can quickly identify key clauses, reduce manual errors, and ensure compliance with legal requirements. In addition to streamlining the process of creating contracts, AI-based CLM solutions can also be used to analyze existing contracts for potential risks or opportunities. By using advanced text analytics tools such as sentiment analysis and keyword extraction, companies can gain insights into their contractual relationships that would otherwise be difficult or impossible to obtain manually. In this blog post, we will explore the top five ways in how AI-based CLM solutions can maximize impact for organizations.
The use of Artificial Intelligence (AI) in Contract Lifecycle Management (CLM) is becoming increasingly important for businesses. AI powered contract lifecycle management can help streamline the process of creating, storing, reviewing, indexing, retrieving, analyzing, negotiating, and approving agreements. It can also help detect errors and outliers quickly and accurately. AI-based CLM solutions are able to combine parsing with natural language processing (NLP), text analytics, and optical character recognition to transform legacy contracts into digital documents. This allows companies to take advantage of automated processes such as automated contract review, automated contract negotiation, and automated contract approval. By automating these processes, companies can save time and money while ensuring accuracy in their contracts.
Automate Contract Review & Markup
One of the most important benefits of using AI-based CLM solutions is that they can automate the review and markup process for contracts. By leveraging natural language processing (NLP), text analytics, and optical character recognition (OCR), AI-powered CLM solutions can quickly identify key clauses within contracts and flag any potential issues or discrepancies. This helps to reduce manual errors and ensure that all contracts are compliant with legal requirements. Additionally, AI-enabled CLM solutions can also help to speed up the review process by automatically highlighting any changes that need to be made to a contract before it is signed off on.
Streamline Contract Negotiations
Another benefit of using AI-based CLM solutions is that they can streamline contract negotiations by providing intelligent insights into the negotiation process. By leveraging machine learning algorithms, these solutions can analyze past negotiations to provide valuable insights into how best to approach current negotiations. This helps both parties involved in a negotiation to come to an agreement more quickly and efficiently. Additionally, AI-enabled CLM solutions can also provide real-time updates on the status of each negotiation so that both parties are always aware of where things stand at any given moment in time.
Reduce Manual Errors & Improve Compliance
AI-powered CLM solutions can also help organizations reduce manual errors and improve compliance with legal requirements by automatically flagging any potential issues or discrepancies within contracts before they are signed off on. By leveraging NLP, text analytics, and OCR technologies, these solutions can quickly identify key clauses within contracts that may not be compliant with applicable laws or regulations. This helps organizations avoid costly mistakes while ensuring that all contracts are compliant with legal requirements before they are finalized.
Increase Efficiency & Cost Savings
By automating many of the tedious tasks associated with contract management such as review and markup processes, AI-powered CLM solutions can significantly increase efficiency for organizations while reducing costs associated with manual labor. Additionally, these solutions also help organizations avoid costly mistakes by automatically flagging any potential issues or discrepancies within contracts before they are signed off on which further reduces costs associated with noncompliance penalties or litigation fees down the line.
Generate Dynamic Building Blocks
Finally, AI-powered CLM solutions enable organizations to generate dynamic building blocks from static documents which further increases efficiency while reducing costs associated with manual labor such as data entry or document creation tasks. These dynamic building blocks allow users to easily create new documents based on existing templates without having to manually enter data each time a new document needs to be created which saves time and money in the long run while increasing overall productivity levels across an organization’s entire contract management system.
Final Thoughts:
The potential of Artificial Intelligence (AI) in Contract Lifecycle Management (CLM) is immense. AI-driven CLM solutions can help organizations to streamline and automate their contract processes, improve accuracy, reduce costs, and increase the speed of contract execution. From leveraging Natural Language Processing (NLP) to extract metadata from contracts to using Optical Character Recognition (OCR) to review and analyze documents, AI-based CLM solutions are transforming the way organizations manage their contracts. With AI-powered CLM solutions, organizations can maximize the impact of their contracts by reducing manual errors, improving compliance, and accelerating contract execution.