AI (artificial intelligence) is everywhere today. It seems there is a steady stream of news outlining the latest uses that Silicon Valley has found for AI.
One of the newer developments is AI-based contract management software (CMS).
The sheer volume of contracts, along with their supporting documents such as appendixes, charts, and glossaries have made standard contract management software inefficient at best.
Businesses often do not have a database of all the information in their contracts, and therefore, no efficient way to sort or extract all of that data.
This leads to inconsistencies in contracts and makes contract management a huge consumer of a company’s resources.
The New Frontier
In recent years, AI-based software has made it possible to not only efficiently manage contracts, but it has the capability to do so much more.
The following list details just a fraction of what AI-based CMS can do:
- Easily search for and extract data and metadata.
- Offer cloud-based storage that is accessible at any time and from any device.
- Clarify the content of a contract.
- Sort contracts by a variety of parameters including renewal dates, particular clauses, or what type of contract it is.
- Mitigate the risk of missed contractual obligations by setting alerts to warn users of approaching dates within the contract.
- Make contract creation much less labor-intensive. Creating a new contract is much easier when you can access any volume of previous contracts using the same provisions and contractual elements as the new contract.
- Helps keep terms and usage consistent across contracts.
- AI CMS can keep track of third party contracts as well.
- Upload hundreds of contracts at one time.
There are dozens of types of AI-based contract management software on the market.
A couple that are making headlines for their innovative approach are Evisort and Icertis.
Both include features such as:
- Compliance tracking
- Contract lifecycle tracking
- Full-text search
- Pre-built templates
- Specialty contracts
- Workflow management
Evisort sets itself apart by being “pre-trained.”
This means it is ready for full use right when you boot it.
Evisort continues to add Fortune 500 companies on a monthly basis.
After receiving 4.5 million in seed money (see Forbes article) and recruiting new high profile talent from Silicon Valley, their growth shows no signs of slowing in the near future.
Francisco Meza, the former engineering leader at MuleSoft and Invitae was recently added as Evisort’s Vice President of Engineering and the company.
Currently, Evisort seems to be hiring while pushing the boundaries of AI technology by bringing it to traditional industries such as law and medicine.
Icertis, while rich in features, requires time to “learn” your contract needs by following certain algorithms.
Evisort also slightly edges out Icertis by the in-depth capabilities of its compliance tracking and alert settings.
Both systems are cloud-based and offer constantly updated security features to keep your data safe.
The Bottom Line
Contract management software that is based on AI makes managing contracts much less labor-intensive.
By automating a repetitive and time-consuming task, you free up the creative capabilities of your workforce.
In this context, AI is not about replacing humans with machines.
It is about letting a software program do the boring, mind-numbing, but important tasks of managing the entire life-cycle of a contract.
This allows the humans to focus on the things that machines aren’t capable of doing such as cultivating new clients, establishing and maintaining business relationships, coming up with creative solutions for clients and all the other moving parts that are required to not just maintain, but to grow a business.