Generative artificial intelligence (genAI) is not just a tool; it’s a transformative force impacting many, if not most, industries with its advanced data generation and optimization capabilities. In contract management, where efficiency, accuracy, and compliance are paramount, genAI offers significant benefits worth exploring.
This blog highlights three practical applications of genAI in contract management: Redlining, Legal Helpdesk, and Contract Data Migration. These use cases are available now to in-house legal personnel and can be a good jumping off point for leveraging genAI in provision of legal support.
Redlining: Exemplifying Speed and Accuracy
GenAI-enabled redlining is accelerating the contract review process by employing artificial intelligence to assess and mark contracts swiftly and accurately based on a client’s contracting standards. This approach, whether performed by the in-house team or a legal services provider, ensures rapid analysis of contract terms, facilitating quick identification of discrepancies and suggesting necessary revisions.
Benefits include:
- Speed and Efficiency
- Rapid analysis of 3rd party paper
- Accelerated response times
- Accuracy and Compliance
- GenAI capabilities to ensure contracts meet client standards and risk profile
- Enhanced Capacity
- Enhanced productivity in reviewing a contract
- Increased existing internal team capacity by leveraging more cost-effective service providers for first-level review
Legal Helpdesk: AI-Driven Legal Assistance
A genAI-enabled legal helpdesk represents a breakthrough in providing immediate support, guidance, and information for frequently asked legal and compliance questions. Compiled relevant policies and processes allow employees to receive instant responses to commonly asked legal questions. A Helpdesk model ensures enhanced productivity by handling routine queries, allowing the in-house legal staff to concentrate on more strategic matters.
Benefits include:
- Timely Responses
- Delivers instant answers to employees’ common legal inquiries
- Increased Productivity
- Automated handling of frequently asked legal questions frees up in-house team’s time to focus on core legal support
- 24/7 Availability
- Always available, making it ideal for global organizations that operate over multiple time zones
Contract Data Migration: Streamlining Transitions and Integrations
Historically, the transition from one contract management system to another represented months of work to port over legacy agreements. Without this legacy data, new CLM applications are less effective for users. GenAI technologies now allow legal departments to significantly speed up the timeline to complete and reduce the cost of migration to the new CLM system, with a focus on the key data that needs to be captured in the new system.
This is equally true for companies that are acquisitive and inherit the legacy contracts of an acquired company. There is great benefit to port these contracts to a centralized repository for ongoing data analysis and risk management.
Benefits include:
- Efficient Data Extraction of Key Attributes
- GenAI is more accurate than traditional ML technology and can quickly achieve 90%+ accuracy in automatically extracting key data fields to be ported to new CLM
- Cost and Time Savings
- Significantly reduces manual effort required for migration and thus significantly increases speed of migration
- Reduced costs allow corporate clients to migrate more data and remain within given budget
GenAI is transforming the field of contract management by providing significant advantages in accuracy, efficiency, and productivity. All signs indicate that genAI capabilities will increasingly become integral to the effective management of contracting portfolios. For organizations looking to not delay and get started today leveraging genAI, Redlining, Contract Data Migration and the rollout of a Legal Helpdesk represent quick and effective wins.
By leveraging an experienced legal services provider who has already embedded genAI into their service offerings for these use cases and others, is a great way to quickly realize the power and benefits of this new technology. Additionally, the service provider approach alleviates the worry of having to deal with change management or complex IT procurement hurdles.
