No one can deny that the work of a contract manager is often necessarily complex. And while some degree of complexity might just be the cost of doing good business, there are areas in which seemingly endless complications do little more than waste valuable time and resources. Wherever certain processes within contract management can be simplified, they absolutely should be.
This is why contract management software powered by artificial intelligence is becoming popular for in-house legal teams. Legal teams today are able to save time and money by simplifying their practices with the help of AI, and they are finding new cutting-edge ways to do so all the time. Here are some of the initial ways AI has helped to simplify the contract management process.
There are few things more detrimental to a legal team than disorganization. The manual upkeep of documentation is simply no longer viable in today’s age, regardless of the method. With AI-driven contract management software, a centralized location is created for all data to live electronically, and AI algorithms go one step further by classifying and organizing the data into relevant categories. This centralized network not only makes specific documents easier to access, but it makes sharing them securely within your organization as simple as clicking send on an email.
There are so many notoriously tedious and time-consuming processes involved in contract management, whether it’s redlining contracts for inconsistencies, or translating analysis of high volumes of data into a single, comprehensive report. AI simplifies these tasks, in the first case by identifying deviations in language automatically, and in the second by extracting only the relevant information needed from a broader collection of data under your legal team’s control.
Paving the Way for Standardized Contractual Language
As AI’s capabilities continue to advance, we are closer than ever to a more universal acceptance and implementation of standardized contractual language. While standard contracts have myriad other benefits that can be discussed, one of the most notable is, of course, simplification. However, without the use of AI-assisted automation tools, the ability to enforce standard language effectively would be impractical, if not impossible. Contract management software uses these tools to simplify everything from the drafting of standard templates to the identification of deviations throughout the negotiation process.