After discussing Artificial Intelligence in the context of contract management in the previous blog posts, it is now time to dig deeper.
- Artificial Intelligence in Contract Management – The Robot Lawyers are Coming – 1
- Artificial Intelligence in Contract Management – The Robot Lawyers are Coming – 2)
The functions of a contract management solution can be broadly divided into three parts – authoring, storing and analyzing. Artificial intelligence helps in each of these stages, making the automated process of contract management more powerful and enables organizations in realizing greater value from their contracts.
Application of Artificial Intelligence in Contract Management at different stages
Most CLM solutions have a repository of templates and clauses which can be used to build a contract. However, artificial intelligence takes this feature to the next level. With an AI engine powering the contract lifecycle management, the level of awareness of the tool moves from content to context. This means that with AI, the contract management solution can help not just in building the contract, but also identify the pertinent clauses that should be used for a particular type of contracts. E.g. the CLM will recognize and inform you that a procurement contract should contain a currency fluctuation clause if the vendor is not based in the US.
Storing might be the most passive part of contract management, but AI can add something during this stage as well. Searching for a record in a repository having hundreds of thousands of contracts is cumbersome. A contract lifecycle management solution with an AI engine that learns on the job can perform a Google like free-text search rather than search based on exact text matches.
The 3rd stage of contract management is the part where AI really comes into its own. That will be the topic of discussion in our next (and concluding) part of this blog series. Needless to say, we would love to hear from you in the comment section below.
More on this topic: AI-Driven Futuristic CLM Capabilities – 1: Predictive Risk Profiling
Learn about Zycus’s Contract Management Solution.