With contract volumes growing and a complex business environment, organizations are relying on advanced technologies more than ever to ensure they have a handle on their contract-based obligations. One of the most impactful innovations is the integration of AI-powered analytics within a digital contract management system. The result: legal, procurement, and operations teams now have real-time insight into the management of their contracts and can use that to inform decision-making.
Conventional contract management does not have the quickness to reveal vital information or the tracking power necessary to oversee an organization’s contract portfolio. Intelligent systems powered by AI (like the ones offered by Ironclad) can fill this gap and do much more. They can surface important information quickly using natural language processing (NLP), track performance across the entire portfolio, and they can do all these tasks simultaneously.
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Real-Time Contract Visibility
Tools for AI analytics give instant access to data from contracts for all departments and systems. By gathering and centralizing metadata, such as renewal dates, payment terms, obligations, and even the wording of specific clauses across all contracts, a department can monitor the overall contract health in real time.
With dashboards and visualizations, it’s easy to see patterns (or even to spot the absence of patterns), flag any anomalies (no matter how small), and make ‘what next?’ decisions without having to navigate the manual decryption that accompany these types of documents.
Predictive Risk Identification
Managing risk becomes easier when a contract management system that utilizes artificial intelligence is deployed. It can spot potential problems before they get out of hand. So far, most of the attention AI has attracted in the context of legal risk management has focused on its groundbreaking work in natural language processing (NLP).
Lawyers have long known that if you want to understand whether something is likely to cause a legal problem, you need to closely examine the language being used. AI does this by learning from historical contract data.
Performance and Obligation Tracking
AI analytics can track performance metrics and contractual obligations. Automated systems can watch to see if milestones, deliverables, or payment schedules are being met. They can even send out alarms if things start to go off course (which is, thankfully, a rare occurrence).
And all of this means that the AI systems or “intelligent agents” can ensure, with a pretty solid degree of accuracy, that all parties involved in an agreement are meeting their respective commitments and staying accountable. This is especially important, obviously, in any arrangement where a lot of money or business reputations are at stake.
A Quality Contract Management System Provides Valuable Data for Real-Time Assessment and Implementation
Transforming static data into real-time intelligence, contract management solutions are being redefined in their value by the power of AI. Risk identification, performance tracking, and on-the-fly, strategic reporting are even more valuable for organizations today, because these capabilities provide an edge in managing not just the obligatory aspects of their contractual relationships, but also the strategic side, allows enterprises to maintain agility, compliance, and operational excellence.
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