Impact of AI on Contract Management

Contracts are the soul of every company and hence efficient contract management can increase the company’s chances of success significantly. Unfortunately, if left on human resource, large scale contract management can be a daunting task with more risks and chances to lose out on important clauses. Artificial Intelligence, however, has transformed the industry providing deeper insights and control. Artificial intelligence divides the task into two phases.

The first guides the user in understanding the clauses required by the contract. Offering templates and suggesting clauses included in similar contracts. It can present insights into the differences and similarities in the documents by natural language understanding of the text. These type of AI analytics are often categorized as prescriptive.

However, AI also has predictive capabilities to assist contract managers. Predictive features allow the systems to make decisions based on past context and can be very handy in large scale contracts. A formidable leading AI company for contract management is plumedot, which, allows intelligent contracts, digital deal making and secure storage of contracts.

Extraction of Data

Extraction of data is essential for various AI applications and so is for contract-related tasks. Being able to extract important information is essential to make informed decisions. AI enables us to extract important dates, signatures and search queries related to keywords. The system can classify text, sections and clauses using natural language processing and machine learning algorithms. This enables us to filter documents by set categories, similar features and patterns.

Organizations who incorporate AI for contracts have an edge in risk assessment and mitigation. This is done by highlighting potent information that can be critical in decision making, as well as highlighting sub-clauses that can be inconsistent with the company’s objectives. Therefore, companies like plumedot allow the ability of timely informed actions.

Independence

Three of the most important factors in making this process efficient and risk-free is time independence, space independence and language independence. Majority of contract disputes and negotiations are handled within limited time frames. A platform like plumedot with the ability to bring stakeholders on a single page can be very productive and time-saving. It can significantly reduce the review cycles, sending and receiving documents and enhances communication.

Instead of relying on third-party venues, one gets the ability to join meetings and make important decisions on the spot, independent of time and space. The systems give you the ability to form contracts, make e-signatures, payments and store them simultaneously within deadlines. This also increases transparency as the entire process is integrated and inclusive of all stakeholders.

Since the platform is inclusive, it gives timely alerts, reminders and optimization options.  Another important aspect of contract is the contract language. While making international deals, the language understanding is crucial. Hence, AI platforms provide translation management for semantic understanding of texts.

Contract Management

An important misconception that keeps people away from using AI from contract management is the learning curve of the platform. While learning a new technology always seems challenging, the dashboards designed for the systems like plumedot are very intuitive and based on extensive industry experience in document management. It is only a matter of minutes to get used to the system and understand its potential and benefits for both small and large scale uses. Productivity, transparency and security are just some of the benefits that can be obtained from it.

Sabur Butt is a PhD scholar at Centro de InvestigaciónenComputación, Instituto Politécnico Nacional (IPN). He aspires to create computing solutions with more insights into human behaviour using machine/deep learning techniques.

Image credit: Cytonn Photograph