Does the review and analysis process of your contracts cause delays in your business operations? Are your legal experts spending a significant portion of their time on repetitive manual work related to contracts review? Then, you are not the only one. Today, contract analysis has become a nightmare for many organizations. Some of them have been approaching contract analysis manually through a team of lawyers. Others have adopted a semi-automatic approach of supplementing their legal workforce with their home-grown software programs or leveraging a third-party software tool to assist. Most of these traditional solutions to address the underlying challenges have proved to be ineffective and inhibit business agility.
Enterprises are grappling with a multitude of challenges pertaining to contract analysis and review. Some of these are as follows:
Leveraging only lawyers in contract analysis is clearly time consuming, expensive, error-prone and not scalable. Traditional software tools have attempted to automate or semi-automate contract analysis by using templates, rules and conventional programming techniques. They suffer from limitations such as low accuracy, not being adaptable to handle bespoke contracts, inability to learn from reviewer corrections, inability to accurately extract from complex tables, inability to cope with surging volumes and more.
What we need is an effective Artificial Intelligence (AI) based contract analysis tool, which can be trained quickly to subsequently automate extraction of the contract elements, learn from reviewer corrections, scale dynamically and more. To learn more about how enterprises can realize value out of AI based contract analysis tools, keep watching this space.