Because business is inherently competitive, good ideas and talent aren’t sufficient to help you stay ahead. Having the right tools to enhance business performance and emerge at the top of your industry is best.
Most competitive businesses, including law firms, employ AI Contract tools to drive value and help get the job done. The tools use a text-based machine learning process by leveraging algorithms and rules based on text searches. Contract AI drafts, reviews, and tracks contracts more efficiently. Let’s delve into exploring the application of contract AI.
Types of AI Contract Software
Contract AI covers a broad category of AI-powered tools. Hence, it’s crucial to understand what’s useful to a business. You need tools that increase the value of your business, which is why we list the three major categories of contract AI below.
AI Contract Drafting Tools
Machines are swift and efficient compared to humans. AI contract software drafts contracts in a flash, depending on the information provided. So, you can automate the drafting stage while customizing the end product to suit your needs and use.
These tools offer valuable solutions in the initial drafting stage only and have no role to play in the other processes. The other functionalities like contract negotiation, signing, storing, and tracking are fulfilled by other tools independently.
AI Contract Review Software
These tools can automatically find, disengage, and raise alarms regarding any deviations in a contract. As a result, teams using the software can easily review agreements and adjust any concerns as per the information provided by AI contract review software.
For instance, lawyers enjoy finding the software highly beneficial in preparing for negotiations by providing the crucial points to focus on. The main setback of the AI contract review software is that it lacks end-to-end functionality, meaning different people can’t collaborate on the platform. Instead, they have to do so on different tools.
AI-enabled contract collaboration software
AI-enabled contract collaborations are unique in that they offer different functionalities that cover the entire contract lifecycle. They can draft and review contracts while allowing users to do the following on a contract benefiting businesses.
- Team collaboration on contracts in real-time
- Provide automated approval for high-risk workflow
- Promptly query fundamental data points instantly
- Secure signing of contracts with legal eSignatures
- Set automated reminders
- Identify bottlenecks and blockers
Benefits of Using AI
Leveraging AI tools for business in various processes has a fair share of advantages, like value addition and a fast way to create and review a contract. Here are more advantages.
- AI tools draft contracts based on the data provided and review them for errors or inconsistencies while ensuring compliance with particular rules in an industry.
- Teams use AI software to identify and compare differences or similarities in contracts.
- The tools can analyze and provide relevant proposals as per counterpart preferences.
- AI software can also evaluate the risks of taking different paths and help you negotiate with transparency and unmatched confidence.
- They track the execution and performance of drawn contracts and raise flags for issues like breaches while enforcing terms and conditions. As a result, solving disputes is easy but also fat and effective.
The downside of Using AI Tools
Although there are many advantages of using AI contract software in business, there are also a few risks you should be aware of;
- Loss of human control and judgment
- Less human interaction and trust
- There are more legal and ethical challenges as AI tools can make decisions that don’t align with your goals.
Before settling for AI software, you must know the specific needs of your business. Ensure the software you get will empower your team, and it should be easy to use. Additionally, whether it’s a purpose tool or an all-inclusive, it should add value and provide fast solutions to your business.