Today, only 20% of businesses say automating tasks such as invoicing and contract validation is the second most crucial use of AI. However, one reason for the slower adoption of artificial intelligence in contract management is the lack of awareness and pervading confusion about what is contract lifecycle management and what is an intelligent contract.
Contracts need to be intelligent. When there’s such a huge volume of terms and conditions available about a variety of contractors in a number of contexts, it only makes sense that the data is utilized for purposes other than just management. Intelligent contracts channel artificial intelligence tools for analyzing contracts so that the contracts become valuable insights for organizations.
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What is Contract Intelligence?
Contract intelligence can be termed as the next level of contract lifecycle management that involves generating insightful reports and analytics based on the existing data in the system. Contract intelligence that way is more than just contract management. It involves assessment, analysis, and insight generation of the contract life cycles that aid in future decision-making and bring about overall efficiency.
Intelligent Contracts are Amplified by AI
Today AI has transformed several aspects of a business, particularly the management and handling of corporate and legal contracts. An AI-powered contract platform is a wise investment because it not only reduces manual effort but also uncovers insights that may be buried deep within the contract verbiage. Following are some ways in which AI has amplified the power of contract intelligence:
# Contract setup: AI can be used to accelerate the process of setting up contracts through access to a template repository that lists clauses sourced from existing contracts across industries. A contract management software structures new contracts by combining the insights and references of similar documents or the nature of the contract. Each additional contract that gets added into the system further feeds new data and insights, helping the platform evolve as you go.
#Efficient obligation management: The whole point of intelligent contracts is being able to manage obligations with a few clicks. Obligations are mainly commitments that two parties make with each other and may take the form of service-level agreements (SLAs) as per industry compliance. This is also the area where most errors occur due to omissions or lack of renewals. AI empowers intelligent contracts platforms to easily spot obligations or terms hidden beneath complex legal or contractual language, ensure compliance while also building a long-term trust relationship between the parties involved.
#Better contract negotiation: Most businesses today cannot escape the complexity of contracts in terms of their nature, industry-specific requirements, type of vendor relationships, among many other factors. AI tools alert users towards terms and outcomes, assist in reviewing the terms or conditions, and ensure that past mistakes are not repeated, let alone committed in the first place. An AI-based contract management platform optimizes the process by applying best industry practices within an organization or a system.
Deeper analytics to enable decisions: If a contracts management platform simply manages documents online without ever utilizing that information for generating insights, it is not the best business investment. Here’s where AI-powered contracts platforms make all the difference. Each contract has a wealth of information and future references – data that is sitting to be interpreted and utilized. Intelligent contracts platforms help you dig into your existing data, categorize it and uncover insights from each agreement. AI recognizes patterns and identifies hidden relationships within contract data. It helps anticipate potential bottlenecks and provides effective reporting for both parties.
How Intelligent Contracts Help
# Productivity: Artificial Intelligence has revolutionized the way we treat contracts. Now it is expected that digital contracts are intelligent enough to enable data insights leading to productivity decisions. 54% of executives say that implementing AI in their workplace has increased productivity.
# Uncovering hidden value: Intelligent contracts platforms such as Revnue help uncover hidden value within contracts or within the contracts management platform. Keeping a tab on contract terms or renewal dates helps businesses and vendors stay on top of their games, unearthing profitable opportunities.
# Simplifying day-to-day work: 79% of executives think AI will make their jobs simple and more efficient. This is especially applicable in terms of contract insights. Due to unified platforms such as Revnue, intelligent contracts involve the management of assets and services on both the buy-side and sell-side. This enables end-to-end visibility across customers, suppliers, contracts, assets, SaaS, and services.
# Scalability: AI-powered contract management platform evolves with more data and contracts in the system. Such a platform monitors obligations proactively and protects companies from contract-related errors in the long run, learning from each slip-up. When a platform allows scalability, it encourages companies to explore different industry domains fearlessly and expand in other sectors.
READ ALSO: What Is Digital Contract Management
The Revnue Advantage
Considering the above benefits of a contract management platform, Revnue has created a platform that unifies several functions to deliver contract intelligence.
As an AI-powered contract management software, Revnue was built to scale in terms of size, industry vertical, or location. A legal firm will find it as useful, scalable, and customizable as a manufacturing company.
Some of its features that make this possible are –
- Unified view across assets, suppliers, SaaS, and contracts
- Powerful metadata extraction, including information from images, photos, pdf documents
- Intelligent capturing of terms and conditions, asset information, supplier information, auto-discovery of SaaS subscriptions, and more
- Multi-channel data ingestion, including email, scanning, and support for multi-format document types
- Custom fields that allow organizations the freedom to shape contracts as per industry standards
- Advanced search, including NLP, delivers the required insights in seconds
Leverage Contract Intelligence for Actionable insights
Revnue intends to be a platform to help and steer a business as much as to manage contracts. It provides insights that assist an organization in discovering opportunities within contracts, reducing costs, and maximizing value. The platform delivers this through easy visibility of critical contract terms and collaboration across your teams. A business may leverage its powerful API for enterprise-wide integrations, further ensuring easy access and growth.
If you think your organization is in a legacy or traditional business and may not be able to leverage AI-powered contracts software, you should talk to us.