Reimagine Contract Management with AI and Digital Workflows
Does AI really matter in contract management? Yes, it does, and a lot! Many basic CLM solutions can offer automation and ease, but they can't match the level and intensity of AI-enabled contract lifecycle management solutions. How AI can help save time and cost in various types of contract management? AI can be used for a plethora of use-cases across the contract lifecycle. Starting from contract request, authoring, review, negotiations & signing, compliance to renewals, and risk management.
The hidden power of AI is best acknowledged when the number and complexity of the contracts you handle or review drastically increases.
Major AI-enabled application areas in contract Management
- Identifying contractual obligations
- Contract metadata extraction
- Comparison of clauses and identification of gaps
- Risk assessment and mitigation
All these application areas accelerate the new contract creation process while staying compliant with all pertaining laws and regulations.
How AI can enhance contract management for various departments?
Sales contract management — saves time and costs
By automating day-to-day contract operations and fast-tracking proposals to invoicing cycle, AI and NLP can accelerate your contract review cycle. It frees up the time and resources engaged in sales contract authoring, redlining, and negotiations because of which your sales team can keep themselves competent on the field. In addition, it can help your organization to get notified for slippages and also prevent penalties, thereby directly impacting the bottom line.
Legal contract management — helps in due diligence
One of the most impactful and significant areas where AI can play a front role from a legal perspective is arguably in Contract Lifecycle Management.
Many corporate legal departments struggle to find practical solutions for handling contracts, with 71% of in-house lawyers reporting that they’re stuck doing manual work that should be automated — as per Delloite
AI in legal contract management can extract data (like critical dates, terms, etc) from multiple legal documents at once for due diligence for applying contract updates, or importing legacy contracts.
Procurement contract management — centralizes supplier data
Procurement is one of the most complicated sides of running a business. Contract management software helps procurement teams to centralize supplier data and eliminate any bottlenecks in getting procurement contacts approved. Procurement departments can always use ready-to-use, legal-approved and updated information to draft vendor contracts or create purchase orders with CLM software. Centralized supplier data help in vetting suppliers and enhancing supplier compliance measurement.
Over to You — Start your CLM journey today!
Whether it’s a buy-sided contract or a sell-side contract, contract management has always been a tedious process and cumbersome activity for all contracting parties. When AI comes into play, this effort-intensive process with long cycle times takes a turn and becomes more effective. AI recommends the right template, to begin with, based on the context of the contract, and hence speeds up the entire CLM process from the start.
Let’s take the example of Aavenir Contractflow which has customizable contract templates including pre-approved clauses. Its AI capabilities are helping contracting parties in carrying out a quick full-text search within contracts. It offers users the ability to dig into the contracts database and find other related documents where similar clauses/terms have been mentioned for adherence. Even you can effortlessly identify the types of contracts and map them with existing contract templates, to begin with. It makes contract authoring an absolutely easy and precise task by recommending relevant clauses including alternative clauses and fallbacks.
WATCH ON-DEMAND WEBINAR
Managing Contract Lifecycle on ServiceNow Using Digital Workflow and AI
