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How can automation software boost the contract data extraction process?

December 16, 2022 - Team EdgeVerve


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The contract data extraction process can be tedious and labor-intensive if done manually. From identifying the key terms to aggregating the necessary data points, this task can take up hours of an employee’s valuable time.

But what if you cut these hours significantly – even potentially down to taking minutes instead of days? Considering these challenges, contract automation software has revolutionized how companies approach their automation needs and is quickly becoming a top choice for teams looking to simplify the document analysis process.

Limitations of manual contract data extraction process

Manual contract data extraction can be labor-intensive and time-consuming, requiring a manual review of every document. This process is highly prone to human errors since it depends upon the ability of the user to interpret the words on each page accurately.

In addition, such manual processes are expensive as they require extensive staffing dedicated to reading and analyzing all the documents. This is especially problematic for companies that have large volumes of contracts to manage, such as those in the financial services industry.

Manual processes also need to improve their ability to extract valuable insights from data quickly. For example, while manual processes can provide an overview of a contract’s contents, they cannot easily access specific details within the document or uncover hidden data points. This can be challenging for organizations that need to review their contracts and extract pertinent information promptly and regularly.

Automated contract data extraction thus enables companies to quickly and accurately extract data from large volumes of documents with minimal human involvement.

The shift from manual to automated contract data extraction

Contracts are a critical part of any business transaction, and the ability to quickly extract data from them is essential. This process was largely manual in the past, requiring significant time and human effort. But as technology has advanced, automated contract data extraction has become more commonplace.

Contract automation software can quickly and accurately extract critical details from contracts, speeding up the process and freeing up humans to focus on other tasks. From reducing costs to increased accuracy, automated contract data extraction can provide businesses with a wide range of benefits.

Automated contract data extraction tools rely on sophisticated algorithms that quickly identify relevant information within documents. This allows businesses to swiftly extract dates, names, prices, and other critical contractual details. Moreover, this process can be done with high accuracy, reducing the risk of errors that can lead to costly disputes.

What is automated contract data extraction?

Automated contract data extraction is extracting critical information from documents, such as contracts, agreements, and other legal documents, using Machine Learning techniques to identify and remove specific terms and conditions. Through automated contract data extraction, businesses can quickly analyze large amounts of data for insights into pricing strategies, negotiations, and regulatory compliance issues, and more quickly.

Thus, by extracting relevant data points, businesses can gain valuable insights into their contractual agreements and improve efficiency in contract management processes. In addition, this type of analysis helps to identify areas of risk, financial implications, and other details that are essential for making informed decisions. Additionally, contract automation software provides the basis for automated workflows such as Artificial Intelligence (AI) based document management solutions that help organizations streamline their processes.

The contract data extraction process

The contract data extraction process involves extracting meaningful data from contractual documents. Here are a few steps to the contract data extraction process:

Data extraction techniques

One of the most common methods for data extraction is web scraping, which involves using automation software to collect data from websites. Web scraping allows users to automate collecting and extracting large amounts of data from public or private sources, such as news websites, online forums, and social media networks.

Data mining is another commonly used technique for data extraction. It involves applying algorithms to large datasets to identify patterns and extract new information. This kind of data extraction is used in many industries, such as marketing, finance, research and development, and healthcare. It allows users to quickly identify trends and gain insights from the data collected.

Natural language processing (NLP) is another technique for extracting meaningful information from text-based resources. NLP is used to analyze unstructured text and extract meaningful information, allowing users to understand the context of a given text. For example, it can process customer reviews and comments, emails, tweets, blog posts, and other text-based data sources.

Finally, API (Application Programming Interface) is an increasingly popular method for extracting data. It enables developers to access specific types of information from external sources, such as websites, databases, and software systems.

Parameters when selecting a contract data extract software or solution

When selecting a contract data extract software or solution, several key parameters must be considered. These include accuracy and precision, usability, scalability, and cost-effectiveness.

Benefits of automated data extraction

The future of automated data extraction

The emergence of automated data extraction technology has changed the game, allowing companies to automate the data extraction processs and produce more accurate results in a fraction of the time. AI is leading this revolution, providing powerful tools that can quickly scan large datasets and extract relevant information with minimal human intervention. It promises to revolutionize how businesses manage their data, providing access to valuable insights that can be used to inform decisions and unlock new opportunities. Contract automation software also has the potential to increase efficiency by freeing up employees from manual responsibilities and allowing them to focus on more meaningful work.

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