Exeleon Magazine

Demystifying Contract Intelligence – Key Concepts and Applications

Demystifying Contract Intelligence

Contract intelligence amplifies legal and contract teams’ ability to exercise skilled judgment and fully realize the intent of agreements. It is done by structuring and connecting agreement data to empower the enterprise with a robust business platform.

Smart contracts identify obligations that are often overlooked by manual review. They help you manage compliance, minimize productivity leakage, and improve risk management.

AI

Artificial intelligence is the heart of contract management, enabling intelligent contract analytics and insights across every aspect of the business’s contracts. It speeds up contract setup, allows for a more accurate understanding of the data within contracts, and makes them a powerful source of insight across the organization.

Using intelligent contract analysis tools, AI-led systems can identify gaps in compliance standards, proactively correct them, and prevent them from occurring again. It eliminates the need to train junior lawyers to monitor contracts and reduces manual updates throughout the contract lifecycle.

Rather than static documents of information, contract intelligence empowers professionals to take action on what they learn from their contracts and drive business performance. It ensures that sales contracts deliver revenue, sourcing deals drive savings and supply chain performance, and risk is managed and controlled. It also frees up time for legal teams to focus on other strategic projects.

Machine Learning

Contract intelligence tools use machine learning to interpret contracts and identify business opportunities, risks, and issues. They also provide insights into leveraging existing contract data, including best practices and potential productivity leakages.

An enterprise looking to implement contract intelligence must evaluate its needs and the required automation level. The cost of the platform is an important consideration, as well as its compatibility with other systems used in the company.

An all-in-one CLM solution allows teams to combine AI capabilities and end-to-end contract management functionality in one unified platform, including contract drafting, negotiation, and post-signature contract management. It allows teams to agree on contracts up to ten times faster than they could with traditional tools. In addition, ML enables the system to learn and improve as it processes new data. It translates to an unparalleled speed of operation and unprecedented scalability for businesses that rely on a contract intelligence platform. The result is a faster, more agile, and more productive organization.

Natural Language Processing

Imagine interacting with a device that activated when it heard your voice, understood your intent, and executed an action in well-formed English. Such technology is made possible by natural language processing, which powers the speech recognition, conversational interfaces, and question-answering features of many virtual assistants, such as Amazon Alexa and Apple Siri.

Contract intelligence utilizes NLP to pre-process and automatically extract data from contracts, classify clauses, and raise exceptions for easy detection by other contract management entities. It also provides a range of innovative functionalities to enable more competent contract risk management, such as intuitive graphics with the contract data that can be used to visualize and analyze pattern and trend data to provide insight into potential risks.

Contract intelligence streamlines contract workflow, automating formerly manual processes such as communicating with stakeholders and rerouting contracts for approvals. It reduces the lifecycle of contracts and frees up resources to spend on business development and innovation.

Data Extraction

When contracts are digitized and loaded into an AI-enabled platform, the power of contract intelligence can be unleashed. Once a platform has this capability, it can mine contract information to create a set of rules and models that can be used to understand the intent of the clauses or terms within an agreement.

It is a powerful and valuable feature. It eliminates the need for manual micro-updates of each contract, and it can reduce review and contracting cycles by allowing contracts to be reviewed and produced faster.

With an intelligent contract management system, contracts become a source of valuable business data and insights that can help drive revenue, mitigate risk, and manage compliance.

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