When you enter into a business relationship with a client, you sign a contract, which forms the foundation for all future business dealings. Inadequate contract visibility and oversight can lead to many unforeseen challenges, both for you and your client, in the coming days. Hence, contract analysis should be your second step to sealing the deal with your client.
As mentioned earlier, contract analysis captures minor discrepancies existing in the terms and conditions mentioned in the contract. A careful analysis of each term can add value to your business’s bottom line moving forward.
Any contract signed can have errors, sapping your business profits. And such errors can lead to many roadblocks, hampering the seamless workflow and unfulfilling terms and conditions. Hence, projects get delayed, and clients are left highly unsatisfied.
These errors can be in any shape and form, a few of which are highlighted below:
Poor contract handling translates into painful losses for both! Here, a careful contract analysis helps, especially when a contract comes with a defined contract lifecycle.
Contract lifecycle management or CLM is a contract management process done methodically to cater to significant cost savings and efficiency improvements. The entire journey begins right from the initiation stage and continues till terms renewal if needed.
AI contracts, however, use the power of automation to streamline and accelerate contract processes during key stages. Only the best contract management software can ensure an errorless contract creation and analysis, which safeguards partners from irreplaceable errors and delayed deliverance of terms and conditions.
Effective contract analysis powered by AI-enabled software can be a crucial driver of business success. It allows business transactions visibility and enables teams to make necessary changes in the existing processes based on what they see in real-time. Further, the team can mitigate plausible financial risks while deciding on a fair offer.
Contract analysis software powered by AI and automation help users review business contracts faster and seamlessly organize the processes, workflows, challenges, and solutions. Such software ensures the contractual terms align with new laws and regulations.
A unique example of the best contract management software for small businesses would be EdgeVerve’s XtractEdge.
This contract analysis software is a business-friendly platform helping parties identify key clauses and terms, mitigate contractual risks and reduce the negotiation cycle. XtractEdge leverages ML technology to extract insights from contracts and give customers complete control over their contractual data. Hence, making smarter decisions become easy.
Let’s elucidate its benefits with an example:
Our client, a Fortune 500 conglomerate, competes in various industries, including construction, machinery, railway systems, electronics, financial services, and many more. The client’s procurement team was tasked to manually create, review, and conduct risk analysis of contracts. This led to the following challenges:
Hence, the client partnered with XtractEdge to analyze existing processes and configured AI-enabled contract analysis software to match the client’s requirements.
Soon enough, the client witnessed a 9x improvement in employee productivity and 90% cost savings per contract review.
XtractEdge Contract Analysis proved efficient and economical for this client and many others who faced bottlenecks while handling bulk procurement contracts. Moreover, with the help of automation and new-age technology like Machine Learning and Artificial Intelligence, contract analysis has become a less cumbersome task for businesses.