We’re sure you’ve heard the phrase “time is money,” and in the finance world, it’s certainly true. Finance teams manage a vast number of contracts, and keeping track of the data within these contracts is time consuming and complex. Now that AI technology is becoming more prevalent, many teams are turning to contract analysis tools that help finance professionals work more efficiently. Here are three ways that finance teams can use contract analysis tools.
Contract Analysis for Compliance
The finance industry is full of regulations to follow, and the risk of noncompliance is high. Fines, combined with the potential damage to the reputation of a noncompliant company are stressful for financial professionals. Fortunately, AI can be trained to recognize potential compliance issues by searching for specific keywords or phrases.
How does AI help with contract analysis for financial professionals? By using a contract analysis tool like LinkSquares to analyze the terminology in each contract, finance professionals can be sure of what each contract contains. If an audit required a financial team to produce details about language within their contracts, gathering the data can be complicated and time-consuming. Instead of spending hours consulting with the compliance team, this process can be streamlined through the AI-based contract analysis tool.
Managing Contract Statistics
Finance teams can execute thousands of contracts a year, and managing the nuances of each one is highly tedious. Through AI-based contract analysis, a finance team can quickly understand the types of contracts that have been executed by the company, all while gathering valuable intelligence.
For example, if management needed to know how many NDAs have been executed over the last year, plus details about the terms, how would a financial professional pull these statistics? Most likely, it would be a manual process that requires searching through and sorting each contract. Depending on the volume, this could take hours or even days. The valuable time spent sorting through these contracts could be spent on other business functions, and the loss of working hours may have a pretty strong effect down the line. By automating the statistics with a contract analysis tool like LinkSquares, a simple click sends AI to do the busy work, allowing for teams to use their time more efficiently.
Reduce Time with Outside Counsel
Financial and legal teams have to work closely to ensure that the language and other terms within executed contracts reflect the company’s requirements and protect the parties involved. When these two teams work together for internal customer agreement reviews, contract organization and analysis is key. Without contract analysis, reviewing each contract requires more hours for legal review. If the finance team is using outside counsel, these hours can add up to an expensive bill.
LinkSquares provides more insight into each contract, which means finance teams can reduce the time spent reviewing contracts with outside counsel. In the long run, finance teams save time and resources, while increasing efficiency.
Of course, there are more applications of AI for the finance industry, but contract analysis offers more efficiency in a previously complex and tedious process. As smart contracts become the standard, financial professionals will have to utilize tools that can analyze them and provide insight into the contents. To learn more about how financial services companies use LinkSquares, check out our Customer Stories.