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The AI advantage: How is AI used in contract management

AI in contract management improves complex processes, such as contract drafting, analysis, and management with data extraction, automation, and language analysis.

Rachana Chotia
Rachana Chotia
June 8, 2023
 min read
The AI advantage: How is AI used in contract management

Frequently asked questions

What is AI in contract management?
AI in contract management involves use of machine learning and natural language processing to extract data, automate tasks, analyze contracts, derive insights, and streamline the overall contract management process. This technology saves time, reduces operational costs, and liberates contract professionals from highly routine work.
How does AI help in contract drafting?
AI contract drafting automates template generation, interprets legal language, suggests clauses, identifies risks, optimizes language, and ensures compliance. It saves time, improves accuracy, and enhances the overall quality of contract creation.
What role does AI play in contract analysis, including metadata extraction and risk analysis?
AI contract analysis harnesses natural language processing to extract essential contract data, such as expiration dates, stakeholders' names, key clauses, and legal jargon. This automated data extraction facilitates quick information retrieval and enables effective risk mitigation. By leveraging machine learning algorithms, AI systems can identify potential risks, anomalies, and non-compliance with legal and regulatory requirements. This allows businesses to take proactive measures, make informed decisions, and ensure contractual agreements align with their goals. 
Can AI replace human involvement in contract management?
While AI can automate many aspects of contract management, human involvement remains essential. AI streamlines processes, reduces manual work, but also creates new roles for managing AI systems and ensures ethical considerations are met. It transforms job functions rather than replacing them entirely.
What are the benefits of using AI in contract management?
Using AI in contract management offers benefits such as saving time by automating manual tasks, handling large volumes of contracts, speeding up contract cycles, reducing costs, and streamlining contract workflow management.
Rachana Chotia
Rachana Chotia
Rachana is the Content Marketing Manager at Signeasy, where she works with the product & customer teams to create content related to eSignature and contract workflows. In her free time, she enjoys going for walks, watching anime, and reading a good book.
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