How AI Can Help Contract Management

Many SAP organizations are just beginning to understand the possibilities that advanced technologies like AI and automation hold for their businesses. While these emerging capabilities are exciting, it can be difficult to know which technologies to try to deploy and where to leverage it.

In SAPinsider’s recent AI and Automation in Finance Benchmark Research report, more than one third of respondents to the survey said that not knowing which technology to use was a major barrier to them being able to implement AI and automation technologies in their processes. Even if these areas are identified, IT teams can sometimes struggle to build a convincing business case to bring to their executive leadership teams.

One of the top areas in need of improvement where AI can make a difference is in contract management. Companies can often be overwhelmed by the number of contracts they encounter, the convoluted language contained within, and finding the action items and disseminating them to other teams.

Top AI Use Cases for Contracts

To help SAP organizations overcome these issues, Icertis put together a list of some of the top use cases where AI can be helpful in addressing contract management.

• Contract risk assessment – Icertis offers a Risk Assessment Copilot to automatically determine how likely an organization is to be able to meet certain terms of an agreement, covering payments, indemnity and force majeure clauses, legal restrictions, and more.
• Contract negotiations – Companies may not realize how far away they are from the typical terms of some standard agreements. AI-assisted contract negotiations can help prevent them from overpaying for some services.
• Generate contracts – Icertis can help companies come up with standardized language to include throughout multiple similar contracts throughout different workflows.
• Free up time for strategic work – Manually reviewing contracts is a time-consuming and often frustrating process. By leveraging AI, legal teams can spend more of their time working on other projects that require a human touch. In addition to bolstering efficiency, this also helps improve job satisfaction.
• Scale with the business – As businesses grow, so do their needs. However, scalability can be difficult and not all parts of a business grow at the same rate. Companies can leverage Icertis to ensure that they keep pace with all the new contracts within their operating systems.

AI has virtually unlimited uses, and companies are just beginning to scratch the surface of its potential. While this is exciting, IT and legal teams must have specific use cases to share in order to get the funding and buy-in needed to acquire and deploy these technologies. Icertis shared the above use cases to help companies know how they can drive value and efficiency.