Could you be losing 40% on your contracts? How AI contract management can add value to your deals
When it comes to contract management, speed, accuracy, focus on compliance, and meticulous attention to detail can make or break a deal. Relying on manual workflows to produce an optimal result just isn’t realistic: According to the Harvard Business Review, inefficient contract management processes cause firms to lose up to 40% of the potential value of any given deal.
Whether it’s a modest deal or an enormous deal, leaving 40% on the table is definitely a big deal.
All the risk—with none of the rewards
Inefficient manual contract management processes present significant business risk. Review and approval cycles can take much longer than necessary, and inescapable human error can result in unfavorable contract terms, poor decision making, and compliance issues. With outcomes including poor contract performance and inconsistent or unexpected outcomes, the upside of using manual contract management processes is negligible.
The solution: Artificial Intelligence (AI)
Artificial Intelligence has been a game-changer for contract management, allowing stakeholders to focus on strategy instead of on executing manual workflows. By automating and expediting review processes, providing reports with objective data and information, and automatically flags areas of risk, AI can reduce the weekly hours of manual contract review to just minutes.
Because it can intuitively replace most manual processes, AI can transform contract management, bringing accuracy, consistency, and speed into workflows that can traditionally be slow and error-prone. It can automate extraction of key data like contract terms, dates, exclusions, etc., from contract .pdfs and pull it into databases for future use. It also scans for legally required terms, phrases, and clauses to ensure compliance with industry mandates.
AI contract management can set up workflows to automatically trigger contract reviews, and flag critical clauses and show-stopper issues to be vetted by stakeholders. It also classifies contract types (MSAs, SOWs, leases, and contracts for independent contractors), and it automatically updates new or ongoing contracts with the most current required clauses to ensure consistency.
Source: Futurism
Why AI for contract management?
- Reduce cycle-time by eliminating manual contract review processes
- Eliminate human errors that can delay or derail contract execution
- Process third-party contracts faster while reducing risk and improving contract performance.
- Consistently negotiate the best possible terms and outcomes
- Ensure compliance with all required terms and clauses, even for third-party contracts.
- Make better decisions by identifying the relationships between common entities hidden in contract data.
Reduce your risk while increasing your bottom line
Are you ready to make the move to AI Contracting Software? Our team of expert AI developers can build a custom solution to help you transform your workflows and hit your business goals. Contact us today for a free consultation.
