How does contract intelligence transform CLM with AI and ML?

1. Unlocking Business Potential Through AI-Driven Contract Management Navigating through contracts can be daunting; they encompass a myriad of sectors and play functional roles across them. The inaccessibility of information adds layers of complexity, creating a tumultuous environment where lucrative business opportunities may be overlooked. Managing contracts manually compounds these challenges. The inevitable amendments and recurring renewals, coupled with a rapidly expanding contract base due to booming business activities, have underscored the dire need for a comprehensive contract management system. This necessity birthed the concept of Contract Lifecycle Management (CLM). The emergence of CLM solutions marked a transformative era in contract management, as expectations soared with the inception of automated software. CLM solution providers recognized the need to transcend traditional contract management, thus charting the path towards contract intelligence. Contract Intelligence: Unearthing Valuable Insights Contracts are treasure troves of hidden insights, brimming with intelligent data to help businesses mitigate risks, uncover cost-saving avenues, and limit liabilities. The marriage of Artificial Intelligence (AI) and CLM has been a game-changer, illuminating these insights and translating them into actionable strategies. For instance, AI enables the identification and conversion of unstructured data into structured enterprise data.

2. AI's capabilities extend to generating Management Information System (MIS) reports from existing contracts, decoding contractual clauses and jargon and revolutionizing contract management from mere document archiving to a sophisticated system offering a panoramic view of an organization's contracting portfolio. Applications of Contract Intelligence in Management With sophisticated machine learning algorithms, analyzing contract clauses and data has become more streamlined, easing the review process and expediting contract-related workflows. This analytical prowess directly impacts contract turnaround times. Here are several illustrative applications of AI and ML in contract management: - Classification: Contracts can be systematically categorized by type and content, from Statements of Work (SOWs) to Master Service Agreements (MSAs), licenses, leases, and more, simplifying document management. - Clause Highlighting: AI's ability to comprehend contractual language allows for the pinpointing and emphasizing of critical paragraphs and clauses that require immediate consideration. - Identifying Novel Clauses: AI can assimilate new clauses from a multitude of documents, storing them in a clause library for subsequent reference. - Learning and Adaptation: A supervisor can correct any misclassified clauses, and over time, the system will adapt and recognize the rectified clauses in the future. How Contract Intelligence Elevates Contract Management AI and ML are inherently complex, and their application to the vibrant field of contracts adds further intricacy. Consider contract abstraction and migration, for example, which automates the data extraction process from contracts. Leveraging Natural Language Processing (NLP)-based ML, smart AI algorithms can swiftly and accurately extract data, indexing keywords, critical fields, obligations, and compliances. Pro Tip: Assess the myriad benefits a CLM can offer your business to make an educated decision. Deriving Actionable Insights With a solid system in place holding thousands of legal documents, manual tagging would be a monumental task. AI and ML obviate this need, enabling the system to recognize and automate tagging processes. Once a model is trained, uploading a document to the software triggers the automatic incorporation of the learned tags. Key Takeaways:

3. A sophisticated CLM unlocks significant potential for businesses, paving the way for stronger operational frameworks. The integration of advanced AI and ML with CLMs is a leap forward, revealing the untapped potential contracts hold for an organization. Book Demo & Explore More- https://www.razorsign.com