Powering Contract Management with Generative AI

⇨ Organizations are still searching for specific use cases to find the best ways to leverage generative AI.

⇨ One area in which AI is particularly effective in automating repetitive tasks is in contract lifecycle management.

⇨ The CLM experts at Icertis recently laid out several important use cases where AI can improve and quicken the way companies deliver contracts.

AI has lots of applications. One of the most significant comes in the form of generative AI, in which organizations can have this powerful new technology produces new outputs. Organizations are still searching for specific use cases to find the best ways to leverage this technology.

SAPinsider’s recent AI: State of Adoption 2024 benchmark research report found that the top driver affecting how SAP organizations utilize AI revolves around the need to automate repetitive and time-consuming tasks and free up workers to spend time on more value-added tasks.

Leveraging AI for Contracts

One area in which AI is particularly effective in automating repetitive tasks is in contract lifecycle management (CLM). The CLM experts at Icertis recently laid out several important use cases where AI can improve and quicken the way companies deliver contracts:

Automated Contract Reviews – As AI technology advances, companies can use it to quickly evaluate and synthesize lengthy contracts to extract important information like expiration dates, financial requirements, and more. Additionally, users can ask chatbots questions and have them scan contracts to deliver straightforward answers in seconds, rather than having to review entire contracts for relevant information.

Compliance – When reviewing contracts, it can be time consuming to constantly flip back and forth between the contract itself and the regulations that might apply to a given clause. AI can automatically highlight parts of a contract that need to be altered for compliance reasons, allowing companies to alter or remove these clauses earlier in the process. AI can also search for any clauses that are ambiguous and lead to confusion or disagreements down the line, ensuring that all parts of the contract are clear and understandable by all parties.

Insights – Pouring over pages and pages of text can make for a mind-numbing experience and make it difficult for all involved parties to understand the true impact of the agreement. AI capabilities can extract insights and help users visualize the data in a way that makes the information more digestible.

Conclusion

Contracts are the underpinning of many of the most important aspects of a business. Yet unclear clauses, compliance issues, and buried information can lead to complications down the line. Organizations must use every tool they can to ensure that every contract is clearly understood and can be executed in a timely manner.

Many organizations are turning to partners like Icertis to infuse their CLM process. This allows them to quickly understand all major points of a contract, ensure that the agreement complies with all applicable laws, and does not open up any party to unnecessary risk.