Creating Contracts Faster With AI-Assisted Tools
Nearly every organization hopes to reduce contracting costs, but 99% of large companies report that they lack the technology needed to improve the contracting process. As the competition for contract management increases, leading organizations look for technologies that will achieve a higher ROI in their contract management lifecycles by reducing contract processing time and downsizing unnecessary labor, including outsourcing.
AI-assisted tools can generate, analyze, and compare contracts far more efficiently than manual methods. Moving forward, these tools will play an integral role in enhancing the value of the contract management process across industries. This article examines how AI-assisted contract management software can streamline the contract management process for large organizations, including contract creation, regulatory compliance, and risk management.
Manual contract management is outdated
Although most large organizations report a lack of improvements in their contract management process, 7 in 10 businesses have deployed a formal contracting strategy that includes contract management technology. New AI-assisted tools can close this gap by addressing these organizations’ most common contract management pain points in 2024, which include:
- Mitigating contract-related risks
- Reducing contract management costs
- Managing liabilities
- Maintaining regulatory compliance
Across industries, top leadership is increasing its focus on reducing risk by focusing more directly on process management. Using outdated process management methods, such as manual contract management workflows and non-AI technology solutions, organizations increase their risk for document inconsistencies and data entry errors while slowing down the entire review process.
This is why an increasing number of CEOs now focus on data-driven solutions to risk management processes, which can centralize the contract creation, storage, analysis, and review processes using advanced AI algorithms.
What is contract AI technology?
Using AI for contract management allows organizations to offload the manual document generation process onto advanced algorithms. However, modern AI-assisted tools can do much more than reduce labor time and cost. By analyzing, comparing, reviewing, and finalizing contracts, AI contract management solutions avoid inconsistencies, make informed suggestions, and reduce the risk of exposure more effectively than manual methods.
Using contract AI technology, organizations can also eliminate the cost of outside counsel in the document review process and handle the risk management and compliance processes in-house. Centralized contract management systems can integrate with existing accounts such as SharePoint to help businesses navigate complex contract management workflows with ease.
Most modern organizations face a large skills gap when upgrading their contract management processes. Without the right technology solutions, contracts can be difficult to draft consistently, difficult to retrieve efficiently, and impossible to monitor for compliance deviations. Contract AI offers large organizations a systematic approach to contract management, one that mitigates risks while cutting labor costs in the process.
What can contract AI do?
AI-assisted contract management software offers numerous ways for organizations to reduce contract management risks and improve compliance.
1. Document generation
AI-assisted tools can generate contracts based on standardized templates that incorporate your industry’s compliance requirements. If needed, these templates can be customized with predefined clauses that address specific risks while including all necessary contract clauses (indemnity, force majeure, limitation of liability, etc.).
