What is the Contract AI? Top benefits of AI contract software

Contract AI simplifies contract management by reducing hands on tasks and increasing productivity. You can create, review, manage and measure contracts with precision. This article looks at Contract AI’s role and benefits for different parts of the business.

Key Points

• Contract AI automates the entire contract management process, reduces human error and turns contracts into data that syncs with your business tools.
• Generative ai contract management software makes contract management more efficient with features like natural language processing for data extraction, global contract templates for consistency and more for compliance and risk management.
• Choosing the right AI technology solution involves evaluating your business needs, comparing features and integrations and getting full training and support for a smooth implementation.
  

What is Contract AI?

AI (Artificial Intelligence) helps you work with your legal contracts through implementing LLMs (Large Manguage Models), into various stages of working with contracts, including drafting contracts with AI, reviewing them and analyzing their content to extract valuable data

AI in contract management is changing the way we’ve always done contracts by:

• Removing tedious, repetitive tasks that are time consuming - like writing contracts from scratch or copy pasting key data into CRMs
• Using advanced machine learning to read and interpret contracts with precision - by turning contracts into data that you can quickly grasp on, without the need to read lengthy documents
• Giving you instant access to insights - by analyzing and displaying contract data you can quickly get a grasp of your key business performance
• Turning contractual documents into live data that syncs with your business apps - gone are the days of different data across project management, CRM and accounting tools

As AI gets more and more into contract related processes it will impact different stages of a contract’s life cycle.

Although the output may vary sometimes this will benefit not just the legal team but also Operational managers, Chief Financial Officers (CFOs) and others who need to comply with regulations and meet legal requirements.

By using Contract AI within your business you get.

• Better efficiency and precision in managing contractual agreements
• A huge reduction in human error in manual processes
• Quick and thorough analysis of contract terms
• Better decision making with data driven insights
• Overall better business outcomes through more transparent and error-proof contract process

Key Features of Contract AI Tools

Using generative AI contract management system increases efficiency and precision across the entire contract lifecycle. They simplify different stages like drafting, execution and post signature processes.

They use advanced natural language processing to extract data from large volumes of agreements and static PDFs. This enables easier identification and control of key terms and metadata in contracts.

To simplify data analysis these AI tools can categorize contract terms and match them to standard templates so there’s uniformity and less errors across documents.

When this is integrated with business operations like CRM (Customer Relationship Management) systems or billing systems companies get a smoother flow of information internally. Below are the features that make these AI tools must haves for businesses with many contracts.

Improved Contract Lifecycle Management

The integration of AI into the management of the contract lifecycle can greatly expedite reaching a signed agreement. Such applications streamline the crafting, storing, and actions following signature completion to enhance team efficiency in handling contracts.

By identifying various types of contracts through AI recognition and classification capabilities, these platforms significantly reduce time spent on manual activities involved in generating new agreements.

Notably impactful is how AI-enhanced contract lifecycle solutions manage renewal tracking and obligation fulfillment with ease. Systems such as Contractbook provide automated alerts for impending renewals so critical deadlines are not overlooked.

They commonly offer seamless synchronization with other business systems for automatic data retrieval—boosting both precision and productivity.

Employing an AI-powered approach to overseeing contractual engagements allows organizations to:

• Allocate their resources toward higher-value strategic initiatives while administrative elements are addressed by artificial intelligence
• Recover valuable time typically consumed by traditional management methods
• Diligently adhere to every term within each contract without delay

Contract AI Data Extraction

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Data extraction is a game changer in contract management. AI uses natural language processing to turn unstructured text in static PDF or Microsoft Word contracts into structured data so you have better visibility and control of contract information.

The whole process is simplified when AI tools create data fields that can be shared with other apps by pulling out specific terms and data points from contracts.

These can handle structured and unstructured documents so they’re versatile for different types of contracts. By reducing manual entry errors and improving data integrity AI powered data extraction ensures you meet your obligations and deadlines.

Centralized Contract Templates

Here's how unified contract templates support your organization:

• Consistency across teams
• Quick updates in a changing legal landscape
• Alignment on business outcomes
• Compliance with business contracts
• Standardized templates that can be updated from one source file

In a changing legal landscape quick updates to contract templates can be the difference between being ahead of the curve and dealing with many legal headaches. That’s why Contractbook manages all contracts globally so all commercial teams are on the same page.

AI-Powered Contract Review

Here's how AI tools can help you review contracts:

• They highlight and flag problematic clauses in contracts
• Speed up and simplify the contract review process by identifying legal risks
• Check compliance to regulations and company policies by reviewing contractual terms against them.

Legal AI allows teams within legal departments to review contracts for consistency with other documents, errors that would be missed by human eye. An important factor to consider is that the legal professionals oversight is still required.

Operations, Finance and Legal teams with Contract AI

Contract analytics using AI is good for legal, operations and finance teams. It gives them strategic insight into compliance and contract performance through better analytics tools. These insights help them see trends and patterns across their contracts and make better decisions.

By applying AI to contracts you can:

• Monitor and manage risk better
• Be more compliant with regulations
• Reduce liability risk
• Get a better grip on contract analysis
• Build stronger relationships
• Meet contractual obligations on time

Better Insights and Analytics

Contract analytics powered by AI uses NLP (Natural Language Processing) and ML (Machine Learning) to read and manage contracts faster than traditional methods. These tools can:

• Consolidate large amounts of contract data
• Give operations and finance teams instant understanding of complex contract details
• Eliminate the hassle of sifting through many pages of executed contracts

AI in contract management reveals patterns that would be missed by human eye, so it improves decision making. It gives you insights into key areas like milestones, obligations and key dates in contracts. This allows companies to see trends across their contracts and make strategic decisions based on that.

Reduce Risk

Contract AI tools reduce legal risk by:

• Finding clauses that are risky
• Checking compliance to legal standards
• Using machine learning with lawyer validation to find, extract and verify content in contracts

These tools help individual lawyers and legal teams to develop strategies to mitigate legal risk.

These AI solutions assess contractual risk by finding problematic clauses and suggesting adjustments. Some of these AI based contract management tools have features like automated risk detection which is key to compliance. Note that they are not 100%.

Types of Contract AI Software

AI contract management has many applications across the contract lifecycle from creation to examination to administration to evaluation. AI contract software is categorized based on its capabilities in areas like reviewing contracts, generating contracts or offering full service contract management.

Top providers of Contract Management systems like Contractbook use secure and modern large language models (LLMs) for their reasoning. We will look into the different categories under AI contract software offerings.

AI Contract Review Tools

Contract review tools are built by professionals who are experts in legal language and principles. These tools improve the speed and accuracy of contract review.

Using these AI-powered tools makes reviewing contractual documents easier. By automating data extraction, they produce quick summaries and highlight key clauses to attention. This software can also organize, categorize and file contracts based on parameters set beforehand — a feature that helps in negotiation.

Contract Generation Tools

Generative AI is used in contract generation to draft contracts fast and accurately. This software automates the process of creating custom contracts and eliminates human labor. Contracts can be triggered by events like new records in Salesforce or project status update.

To avoid data entry errors and repetitive tasks, contract drafting tools usually have features like clause libraries and pre-approved templates. These features help in consistency and compliance throughout the contract creation process.

Contract Management System

While Contract review & generation tools are definitely a step into the right direction, they still require a lot of manual and time consuming oversight.

Therefore it's usually better to choose a full contract lifecycle management software like Contractbook, that combines AI-driven functionalities across many different stages of the contract - making the whole process easier to manage, more transparent and cheaper.

These full service systems give end to end contract handling:

• Creating contracts from templates
• Collaboration and task management
• Getting e-signature
• Tracking their progress
• Connecting them with key business tools

Choosing the Right Contract AI Software

When choosing an AI-powered contract solution, you need to consider your company’s needs, compare the solutions and implement quickly. Make sure the chosen tool fits your unique needs and integrates with existing systems.

During your decision making process, consider factors like software compatibility with existing systems, ease of use for team members and history of successfull deployment from software providers. We will look into how to choose the right AI contract solution for your organization.

Your Needs

You need to assess your company’s unique needs and challenges to choose the right AI contract tool. These tools are designed to serve different purposes which may benefit legal team, finance team, sales team or procurement and supply chain team.

To test an AI solution for contracts, running a pilot with a subset of contracts or with one department can be very useful.

Comparing Solutions

When comparing AI contract tools, look into the features like data analysis, compliance checking and ease of use according to your company’s needs. See how well these solutions integrate with existing systems like CRMs and billing software. Also consider scalability and pricing that is based on return on investment (ROI).

Implementation Tips

For a smooth deployment of AI contract solutions:

• All stakeholders like legal teams and contract managers are trained.
• The chosen tool has an experienced support team.
• The selected solution has a proven track record to guide you through the setup process.

You also need to refine both processes and the tool configuration to get better AI performance in contracts.

Looking for the best AI Contract tool for your company? Contractbook is the answer

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Contractbook is the leading AI powered tool to centralize contract management to make it more collaborative and practical for real life scenarios. Consolidating contract related tasks makes it more transparent and compliant.

By automating functions like updating contract templates and data extraction, Contractbook ensures all team members can access and review required documents with ease.

Centralized Contract Management

Contractbook can help you by providing:

• One system to store, organize and access contracts
• AI powered search and filtering to find specific details in contracts
• Automated notifications for upcoming renewals and important deadlines
• Multi user functionality to create, edit and distribute contracts

Create, Collaborate & Sign

While artificial intelligence features are important, Contractbook also gives you a well rounded set of features for contract lifecycle management:

• Templates with custom data fields to maintain consistency in all contracts
• Cooperative tools to collaborate and track changes through version control
• Automated approval sequences for convenience.
• Digital trail to make the negotiation process easier and faster.

The platform allows legally binding e-signatures from any device, making the signing process very fast. Contractbook has a no-code workflow constructor to manage workflows. This includes conditional prompts and Slack notifications to make contract management even more simple.

Real Life Use Cases

Contractbook has been helping companies to succesfully manage their contracts since 2017.

A few examples of our happy customers include the Lenus team that saves at least 230 hours per month on contract management tasks.

Another great success story are our friends at Usado, that have reduced their sales operations costs by at least 25% using Contractbook.

In another example Ganni reduced their missed renewal rate to 0%. These are examples of how Contractbook can help you save time and resources through improving the way you handle your contracts.

Other AI tools to use when working with contracts

Contract management can be greatly enhanced with systems like Contractbook, that will covers most of your contract needs. But to make your life even easier, other AI tools can be added to the mix.

Using tools like MailMaestro and Zapier can help your contract management workflow by helping you communicate better and ensuring your data remains automated and transparent across all your business tools.

MailMaestro - AI Email Assistant

MailMaestro is an email assistant, built to deliver a better, less stressful e-mail communication through Outlook AI and Gmail AI, by:

• Improving the existing email drafts with generative ai
• Summarizing lengthy threads and allowing for 1-click contextual replies
• Creating emails from scratch using prompts

By using these features MailMaestro helps you get through your negotiation process faster and easier, while ensuring there are no unnecessary errors or typos.

Zapier - The Queen of Data Connectors

While Contractbook helps you turn your contracts into data, Zapier is the glue that  connects your all your business data together

Although Contractbook has many built-in integrations like Salesforce or Hubspot native integrations, it’s through Zapier that your harvested contract data can flow seamlessly through all your business tools and make all data more clear and efficient.

Conclusion

In short, AI powered tools for contracts is changing business contract processes. Efficiency, precision and compliance are just a few of the benefits these new tools bring. Optimization of the entire contract lifecycle, automated data extraction from contracts, global contract templates and more.

Choosing the right AI solution for your company requires to map your needs against the market offerings and make sure it integrates seamlessly with full training and ongoing support from providers. Contractbook is known for its features like unified contract management system for all types of contracts and collaborative features that has been tested in real life.

By using these advanced AI features companies can save time and reduce overhead and thus elevate their handling of different types of contracts. So adapting to this new way of handling documents will change everything.

FAQs

What is Contract AI and how does it work?

Contract AI is a machine learning powered system that reads contracts and turns them into actionable data to make the contract management process more efficient and provide insights for better decision making.

Can AI write legal contracts?

While AI can technically write contracts using the power of LLMs, we always encourage a guidance from certified legal professionals.

What are the features of AI contract management software?

The best AI contract management software has features like extracting data from contracts with AI, on top of other contract lifecycle features like task management and eSignatures.

What kind of AI contract software is available?

There are different types of AI software, from contract review to contract creation and full service systems that covers all stages of the contract lifecycle. Choose the one that fits your needs.

How do I choose the right AI contract for my company?

When choosing an AI contract for your company you need to map your needs, check the market options and make sure it integrates seamlessly by providing full training and ongoing support from the provider. Look at the features and how they can be plugged into your current setup.

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