Humans have long dreamed of making machines do what brains do. Technology has gone a fair distance in that direction with artificial intelligence (AI), which puts software to work in order to improve the contract review process in several important ways. By tapping into the time-saving powers of AI software, employees can focus on higher-value initiatives.
Contracting is a central activity in many businesses. Traditionally, it was very labor intensive: management or their attorneys had to draft, negotiate, review, and keep track of each contract. Due to human error, information regularly fell through the cracks, causing companies to lose some of the value of every deal.
Today, computers take on some of the load. Artificial intelligence (AI) technology helps companies overcome the biggest contract review challenges such as managing a large volume of contracts and dealing with inconsistent terms and clauses.
When AI technology is used for contract management, the software is set up to create repeatable contract templates, look for patterns in data, evaluate the data and provide analysis and results. This allows companies to create contracts quickly and track them efficiently, which means they can execute more contracts in the same amount of time that they could manually. It also increases uniformity and clarity, decreasing disputes and litigation.