Contract Analytics Software Using Artificial Intelligence(AI) & NLP methods
Contract analytics is generally done manually, at least till today.
The process of contract analysis is not just complex but time-consuming too. Repetitiveness makes it a boring task for contract analysts, reducing their efficiency. Reading every clause carefully, figuring out what it means, comprehending the terms and deciding to take the right action according to that – there is a lot to do for a person in this process. Above all, it needs a good knowledge of the legal domain too.
To worsen the scenario, this task seems critical to be handled by an automated process So, we need a well-tested and robust technology to help the legal industry Henceforth, nothing could be better than AI and NLP for this Industry.
Read the article to understand how and why.
How Artificial Intelligence and Natural Language Processing Helps in Contract Analytics?
A few capabilities, which a good contract analytics solution has, are:
1. Information Extraction
Contracts are full of content, this whole plethora of data is not information. Information is that vital piece of data which may make or break things for the parties signing the document. It is a time-consuming process to find out this information and act according to it, not for machines or algorithms though.
AI and NLP algorithms read between the lines to extract vital information for you.
There are pre-determined rules, patterns, words and phrases which help the intelligent contract analysis solutions to decide what is essential for the contractors. It Reduces the analysis time significantly, and therefore, the cost too.
2. Efficient Search Capability
We all know how hard it is, to search through the printed papers. This drawback results in a lot of issues for us. If you have to find out a particular clause or word in the contract, it is going to take a lot of time for you to do so. In short, it kills time and frustrates us.
How to overcome the problem then?
Obviously, by using an efficient Document Management or Contract Management System.
Contract analytics software tools do it for you. They generally come with advanced search capabilities. With the help of this feature, you can search for keywords or phrases used within your contract. The process will take a few seconds this way. Better, isn’t it?
3. Aggregation of Important Information
Contracts are lengthy documents. While reading these legal contracts, we generally take quick notes in mind. Some people take digital or hand-written notes too. It helps them aggregate vital information and assess it accurately.
Thinking about a better, less time-consuming and efficient way to do the same thing, innovators came up with Contract Analysis Tools.
These tools first extract important information from a contract and present this collected information in a more insightful manner. It may create metrics and show you those, to help you understand the contract with ease.
4. Easy Identification of Risks
Contracts come with deadlines, cost details and more such information which affect differently at different times. For example, contract renewal cost for a particular date could be $0, and once this date passes, you will have to pay a penalty of $50 to renew this contract.
In short, contracts come with risks. These risks could be related to money, property, products, services, etc. Failing to notice the risks may cause monetary damages or lost opportunities for you. Some contracts come with non-compliance risks.
Organisations or people cannot regularly access their long-term contracts which result in losses in general.
With the help of contract analysis tools, which are accessing the contracts in real-time and checking if you are subjected to risk or not, such happenings can be prevented. So, it is safe to say that AI-enabled legal contract analysis solutions minimise the risks for you. And that too, without you staying involved in the process.
A bundle of papers clutched in a file!
Yes, that’s how a typical contract used to look like.
Not that it is terrible or something, but such contracts are not very convenient. Searching within the document, finding out a contract from a pile of hundreds of contracts your business has signed – everything looks a tough task.
With Contract Analytics tools, digitisation of such documents has become easy. NLP practices help the users of such products to search through multiple contracts or within a contract efficiently. Convenience for legal contractors and parties has increased due to this.
Customers’ contracts, vendor agreements, lease documents, licenses, employee or employer agreements, Non-disclosure agreements and more – types of contracts are many. You or your business may have signed dozens or hundreds of contracts till the date. Losing or exposing these agreements to unauthorized parties could cost you a lot.
Now think of a typical scenario and what calamities may happen. Fire in office, water spilt on paper or you lost the document somewhere during transit – you may face these problems anytime and any day. But this will not occur with your digital contracts, which are secured by encryption and sophisticated artificial intelligence algorithms.
A well-organised dashboard, listing out the main details of your documents and notifying you about the risks, in Contract Analysis tools give you unique and better insights of your contracts than ever. Simplifying the information, it increases your efficiency of understanding the contracts, saves time and reduces risks.
Today, we have AI/NLP based products like Anvi Legal, which are built to perform Contract Analytics efficiently.
Reducing the cost and time incurred in this process, such tools help you easily handle your contracts. This is how technologies, especially Artificial Intelligence and Natural Language Processing are improving the legal industry slowly but firmly. The future is surely going to reduce the problems you face in contract analytics.
It is the right time to upgrade yourself and become the front-runner of your field. Competition, you know! Do it before it becomes too familiar because it will give you the early-adopter advantage and keep you ahead in the race.