While our previous blog series around blockchains was well received, this one (dealing with AI) is already looking like it’ll be more popular than that. This week, we’ll see how artificial intelligence entered the world of contract management, and why it is proving to be so popular. (Also read: Artificial Intelligence in Contract Management – The Robot Lawyers are Coming – 1)
Contracts – Just Pieces of Paper?
While contracts have been an integral part of business for centuries, for most of their existence, they’ve been viewed as a repository of obligations, rules, rights, remedies etc. Even though they have a lot of critical data, they were never seen as assets for generating business intelligence. The emergence of artificial intelligence in contract management is changing all that.
How Artificial Intelligence in Contract Management transform Agreements into Business Assets
Artificial Intelligence is a very broad term, which can sometimes seem all-encompassing. However, there are specific ways in which AI is used in relation with contracts.
The business intelligence mentioned previously can be generated by –
- Using contracts as a knowledge base which is easily accessible and can be used as a repository of information.
- Utilizing this repository as a starting point to derive intelligence by identifying risks and opportunities for your business.
- Plugging this intelligence into all business processes to plan and optimize business decisions which mitigate risks and improve efficiency.
This ability changes contracts from a piece of paper with lots of complicated terms and clauses to a critical business asset.
Importantly, there are solutions such as Zycus iContract already in the market which help companies identify risks and opportunities in their contracts. Artificial Intelligence adds to this capability to take your contracts and your contract lifecycle management to the next level.
Next week, we’ll continue this journey with a deeper look at AI in contract management and how it is already being used by different companies. As always, we would love to hear your thoughts on everything CLM; please share them at firstname.lastname@example.org.
Learn about Zycus’s Contract Management Solution.