Today, legal professionals are always looking for new ways to operate more smoothly, save money, and be more efficient. Contract management is one of the many areas in which technology has made recent strides. In fact, the AI revolution is now upon us, and legal AI software is at the forefront.
For far too long, managing and examining contracts were a labor-intensive and error-prone process. Now, with the help of machine learning and natural language processing, the review of contracts is happening faster and with far greater efficiency and accuracy, thanks to some really amazing contract review AI technology.
Automating Contract Review and Analysis
This task is an essential function of the modern legal team. They identify the key clauses, obligations, and risks. This use to be done manually, in a time-consuming and tedious manner. With the advent of AI (mostly ML), this responsibility is now being handled by smart machines.
Transitioning allows firms to begin identifying thousands of documents in mere minutes, even seconds in some cases. This frees up dozens or, in some cases, hundreds of legal minds to do more enjoyable and productive work that utilizes their unique talents and experience.
Enhancing Accuracy and Consistency
There is a high risk of human error in contract management, especially as it relates to copious amounts of agreements filled with complex and intricate legal language. But contract review AI is consistently applied and isn’t prone to the lapses and fallibility that even the best human reviewers sometimes exhibit.
And while the best law schools in the country train our judicial system’s human reviewers using datasets of contracts and legal standards that are certainly impressive, it’s unlikely that humans are ever going to come close to the level of precision and uniformity achievable when using AI.
Making Risk Management and Compliance Better
Contracts often contain clauses that can pose financial, operational, or legal risks if they are not properly identified and managed. AI contract analysis is very good at locating risky or non-compliant contract terms, which might include ambiguities, missing obligations, or simply bad language.
If these issues can be detected before the ink is dry, then the organization has a fighting chance of reducing its exposure. But even if a contract with questionable terms or terminology goes into effect, it can still fail if it doesn’t mesh with internal organizational policies. AI tools can also benchmark contract language against internal policies to ensure a reasonable expectation of compliance once the contract is in effect.
Contract Review AI Is Revolutionizing Every Aspect of Legal Documentation and Analysis
AI that reviews contracts has revolutionized the entire contract management space by bringing automation, accuracy, and speed to the process. More importantly, it has enhanced risk management and allows users to ensure compliance with all legal requirements. Using AI to manage contracts creates a huge competitive advantage.
It allows the streamlining of workflows in ways impossible before. It also reduces the costs associated with contracting. Because it is so much more powerful and advanced than any pre-existing technology, it ensures continued compliance with applicable laws while also analyzing and managing complex legal agreements with impressive efficiency.
