AI-based Contract Management – Boost Your Operational Efficiency, Seamlessly

AI-based contract management system is one of the implications of advanced technologies, such as machine learning, natural language processing (NLP), and data analytics that deal into drafting, reviewing and monitoring contracts, in a more accurate and strategic manner.

Statistically speaking, below are some jaw-dropping facts that promotes the use of AI-based contract management solution, from a business perspective:

• AI is capable of finishing a review in merely 26 seconds, as compared to 92 minutes, required by a human to complete the same task!

• It is estimated that AI is capable of cutting manual labor in contract review, by half in 2024.

• In 2024, 45% of Chief Legal Officers in the U.S. are planning to invest in new technologies, related to AI-based contract management solutions.

• It is estimated that businesses are losing $122 , for every hour when an in-house lawyer spends working on a contract.

From a business perspective you may face compatibility issues when it comes to integrating an AI-based contract management solution with current software; however, stay assured of our team’s expertise at Biz4Group, recognized as a Trusted Advisor, AI consulting firm, and custom chatbot development company by a large number of international clients.

Key Features of AI-based Contract Management Systems

Here are some important key features of AI-based contract management system, that includes generative AI development services in form of integrations:

1. Automated Contract Creation

Predefined Templates

• AI-based contract management system provides a library of predefined contract templates. These templates are designed in a way that they can cater to various industries and use cases.

• Additionally, the language and structure of templates are consistent that maintains a professional approach across all agreements. Such templates also include the option for customization, wherein a user can modify the template as per his business needs.

Smart Clauses

• It is one of the AI-driven features within templates, that can change the context of the contract. For example, the delivery date, depending on the product type and geographical location, can be changed for a particular product.

• Additionally, smart clauses can update the contract, with changing laws and regulations.

2. Customizable Workflows and Approval Processes

• AI-driven systems can adapt to an organization’s workflow. The workflows can be tailored to match organizational requirements at different stages, for example drafting, review, approval, and execution.

• Customizable workflows are scalable. It can handle contracts of varying volumes, be it simple NDAs or multi-part agreements.

• AI-driven contract management system can do role-based approvals. It can route contracts to the appropriate stakeholders, based on roles and responsibilities.

• AI-based solutions can send automated notifications and reminders to relevant stakeholders for pending approvals, to escape delays.

• Customizable workflows provide complete visibility into the contract lifecycle, wherein users can track the status of contracts, and that too in real-time.

3. Intelligent Contract Analysis

AI-powered Clause Extraction and Analysis

• AI-powered solutions can extract clauses from contracts. Sections like payment terms, delivery schedules, confidentiality agreements, etc. can be extracted, to avoid reviewing the lengthy document.

• AI-based contract management solutions can also perform consistent identification of similar clauses, across multiple contracts. This enables us to perform uniform analysis, and comparison.

Identification of Key terms, Obligations, and Risks

• The AI-driven system also eases out the process of searching databases, of contract clauses. Users can quickly find specific clauses, across multiple contracts.

• AI can also identify and highlight key provisions in contracts. Such provisions can be related to payment, termination, renewal options, and liability terms.

• AI-driven solutions are also great at summarizing key terms, so that stakeholders can understand the main points of the content, instead of going through the entire content.

• AI can also perform risk scoring. It identifies contract that requires immediate attention or renegotiation.

Benefits of AI-based Contract Management

Let’s delve into the benefits of on-demand app development services, related to AI-based contract management, from business perspective:

1. Automation of Routine Tasks

AI-driven system can automate redundant tasks like contract drafting, data entry, and approval routing. This helps in reducing workload on legal, and administrative teams.

2. Faster Contract Processing

AI-based analysis, and automated workflows reduce contract turnaround times, by accelerating the review and approval processes. Hence, such practice leads to faster deal closures, and optimized business agility.

3. Reduction in Manual Errors

AI-driven system comes up with the advantage of extracting clause and data population. It minimizes human errors, thus ensuring that contracts are accurate, along with reducing the risk of costly mistakes.

4. Standardization of Contracts

AI-based contract management solutions are great at standardizing contract language and structure, which ultimately enhances the quality of contractual agreements.

5. Real-time Compliance Monitoring

AI-based solutions keep a continuous watch on compliance with contractual terms. It sends automated alerts and notifications, so that stakeholders are aware of upcoming deadlines.

6. Proactive Risk Mitigation

AI is great at identifying risks such as ambiguous language, unfavorable terms or compliance gaps. Thus, organizations can avoid financial losses and legal disputes.

7. Increased Visibility and Insights

AI-driven system provides advanced analytics that supports informed decision-making. It also provides comprehensive visibility into all contracts, thus enabling better oversight.

How Biz4Group Implemented AI-based Contract Management Solution for its International Client?

Our team at Biz4Group, AI development company has developed a holistic solution for one of our real estate clients “Contracks”. The team has developed web and mobile applications to resolve the concern of paperwork, included in daily operations. Below are some mentioned features that our team of experts developed to fulfill the client’s requirements.

Features Instilled

• Dashboard to provide quick access to the “To-do List”, “Event Calendar”, and “Active Contracts”.

• Edit contracts or archive contracts

• Create and edit reminders, based on contract type and name

• Manage notifications

• Add buyers & sellers, while creating contracts

• Update information, related to property, sale price, earnest money, escrow agents, HOA surveys, etc.

• Enlist financial dependencies between the agent, seller, and lender

• Schedule house inspection

• Integration of Stripe payment gateway

• Search contracts based on filters

Additionally, our team of developers are experienced enough to customize similar kinds of projects, be it integrating AI into the existing solution, or developing an entire AI-based contract management solution for you.

Future Trends in AI-based Contract Management System

Here are some future trends in AI-based Contract Management System that can impact your business in longer term:

1. It is estimated that by 2025, more than 50% of large enterprises will implement AI-based contract management solution in some form.

2. Moreover, AI-based contract management system is going to be implemented in sectors such as healthcare, financial services, and technology. This is due to the complexity and volume of the contracts these sectors are in.

3. The global AI in contract management market is expected to grow from $1.2 billion in 2023 to $4.8 billion by 2028.

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