AI-Based Contract Management: A Complete Guide

Artificial intelligence is quickly taking over the technology sector and aiding in the solving of many difficult problems.  

Nowadays, many sectors are already using artificial intelligence (AI) to improve management styles. But when it comes to contract management systems, AI breakthroughs will be very beneficial.  

Smart AI solutions are now assisting in streamlining contract management operations. AI is enhancing the benefits of automating the drafting of contracts and retrieving crucial information from previously executed contracts.  

In today’s blog, we’ll discuss advantages, salient features, and how to create AI-based contract management software for your company/business.  

But first, let’s discuss, 

What is AI-Based Contract Management Software? 

AI-based contract management automates data entry, review, and risk identification processes. AI-powered contract management software gives contract management experts the building blocks they need for better contract oversight, proactive creativity, and risk reduction.  

Businesses can benefit from AI-based contract management systems, including renewal notifications, compliance management, digital signature capture, controlling contract templates, documentation, and configuration management.  

By centralizing and organizing your asset portfolio, contract management software enables your team to manage your leases and contracts on a centralized platform expertly. 

Moving ahead, let’s talk about,  

Benefits of Using Enterprise Contract Management Software  

The advantages of employing AI-powered contract management software as AI reduces liability exposure by enabling law firms to swiftly and effectively scan their active contracts and identify text for recorded and standardized phrases that may constitute a danger to the business, averting issues before they may arise.  

Some other key benefits that any business or organization can leap using contract management software are: 

• Streamline the creation, negotiation, approval, administration, and renewal of contracts. 
• Automation can increase contract adherence, simplify contract drafting, and examine documentation workflows.
• The AI-based contract management system can also benefit your business by enhancing customer service. Businesses may more quickly determine which consumers are in danger of churning and take action to stop it with the aid of artificial intelligence.
• To convert old contracts and paperwork from third parties into usable documents, AI-based contract management uses parsing with NLP, Text Analytics, and OCR Recognition. Such contracts are examined and divided into sections, clauses, and terms. As a result, it harmonizes document language, reduces discussion time, and increases productivity. 
• Easily work with internal and external stakeholders while having effective access to all contracts.
• To deliver insight and value across the organization, create reports that incorporate data from various sources, such as ERP and CRM software solutions.
• To provide effective access, sharing, control, and management of contracts by all business groups, centralize and secure all contracts in a single system.
• With AI, you can evaluate and identify contract risk more quickly and accurately. AI has the ability to track risk potential, grade contracts using risk analysis scores, notify contract managers when alterations are made to a particular contract, and alert users to warn contract information. 

Moving ahead, let’s talk about, 

Key Features of AI-Based Contract Management Systems! 

The top features that you can include in your contract management system are: 

1. Extract Data

Businesses that manage historical contracts may find this functionality useful. As a result, important terms, clauses in contracts, and data entry are simplified, giving users the visibility, they need to search, report, contrast, and categories contracts and legal concerns.  

2. Dashboard

It is now simpler to plan tasks, make decisions, and respond appropriately thanks to this feature that gives users a consolidated view of all contracts and all related information, such as contract expiration, current contracts, etc. You might start your road toward a streamlined contract lifecycle management process with a single, unified dashboard. 

3. Task Monitoring

This enterprise contract management software functionality offers a sophisticated, automated workflow that enables task performance monitoring. Contract managers can determine how many days the workforce takes to finish their allocated responsibilities.  

4. Analytics

This feature allows the generation of metric-specific reports and dashboards that customers can use to assess the performance of their contracts. These metrics include the type of contract, status, duration, and the effectiveness of the account executive.  

5. Documentation

Users can choose data points and set up rules based on different contract kinds using this functionality. Data consolidation and comprehensibility are two further benefits of AI-based contract management systems. Users can define rules for critical data subsets, addresses, dates, values, and other identifiers. They can cut down on time spent on tedious procedures like content conversion, labeling, and importing data.  

6. Push Notifications

By providing automated reminders at set intervals, this functionality enables users to maintain tabs on contract milestones. Facilitates the transmission of automated alerts to sales staff associated with contracts whose renewal dates are approaching regarding starting contract re-negotiations. 

7. Migrate Data

Data migration is easy and painless using this functionality! You can ensure data accuracy, have complete control over indexing time with a massive analysis, eliminate import costs, and achieve better results with autonomous data movement. Simply put, you can control every aspect of contract administration with AI-assisted data migration services while continuously enriching the data points. 

8. Workflow Analysis

AI can analyze this data to produce insightful results regarding the volume and nature of work completed and comparisons between the firm’s efficiency and that of its rivals. As well as producing statistics and dashboards on the types of work that are in demand in the market. AI is also capable of automatically allocating tasks to employees based on their skill sets.  

9. Repository

One of the greatest ways to enable simple and rapid access to contract data is through an enterprise contract management system with a central contract repository. Your teams will have more time to focus on contract strategy because they won’t have to spend as much time scouring files and email inboxes for pertinent contract information.  

10. Draft Contract

Businesses can create a set of contracts that are uniform thanks to the usage of forms with standard terms and conditions and editing options for contract creation. Such contract forms can be generated using AI based on the criteria established. This can also be configured as an automated tool for clients, allowing them to access the website, enter their specifications, and receive a pre-made standard agreement form. If necessary, the companies might examine the contracts for a particular client who could have certain demands.

You’ve seen the benefits and must-have features of AI-based contract management software.  

It’s time to discuss,  

Key Development Steps to Follow! 

Key steps that you need to take to build an efficient AI-based contract management system are: 

1. Do Some Research 

Once you’ve visualized your software idea, you must immediately move on to the planning stage. The planning stage will try to address several high-level questions concerning the viability of your idea in the present market environment rather than selecting how your software will look or be built. 

Researching the market and doing a study are typically included in planning. Find answers to the following questions: 

• What’s your software’s value proposition? 
• What features will you include? 
• Select target audience 

2. Design 

It’s time to design once you’ve established your requirement for a custom AI-based contract management system, You and the development team decide during the design phase what features your software will have, how it will appear, and how long it will take to develop.  

A wireframe can also be created. A wireframe can offer an overall sense of the operation and flow of your software without delving into the finer points of colors or design. Your wireframes don’t have to be completely featured; just concentrate on illustrating the critical features. 

3. Build a Team 

It’s time to build a team when you’ve established your plan and other activities. Finding the ideal AI developers for your project is a difficult undertaking that might take some time. One alternative is to hire staff augmentation services to handle your outsourced recruitment so they can assemble the best development team for you without you having to search, interview, and hire yourself.  

4. Start the Development 

It’s time to begin writing the code when all your needs and designs have been sketched out and documented. Developers can code depending on the requirements decided earlier stages. Developers build the back-end and front-end interfaces by organizational policies and requirements, and database administrators add pertinent data to the database.  

5. Do Test Your Software 

Before launching the software, the testing process examines the software for errors and confirms its functionality. Expert testers check the product’s functionality at this step to ensure that it operates by the requirements analysis document. Testing will be beneficial later on when your software is being maintained. Without needing to manually run through each test case after a simple change, you may run all of your test cases and determine where your modifications might have broken other software components.  

Conclusion 

The benefits of using an AI-based contract management system are enormous, and the possibilities are endless. Artificial intelligence cannot take the place of intellect. This flexible solution will be used by experienced and astute individuals to expedite, simplify, and improve contract administration.  

Lastly, AI-based contract management benefits your company in a variety of ways. Artificial intelligence (AI) contract management software is a good choice if you’re searching for a AI development services to increase contract visibility, compliance, and revenue.