Whether it’s an NDA, a service agreement or construction project, when you are negotiating terms of a deal, contract review is often a tedious, inefficient process with a potentially high level of risk. AI-based contract review allows businesses to streamline and improve complex processes and assist lawyers in reviewing the contract terms within minutes or hours. This software simplifies information, making it easy to read and flag identify areas of concern and red flags.
Since generative AI came on the scene, there is a lot of conversation and prognostication about what AI can do for contract review. By implementing an AI-based contracting solution, businesses can achieve multiple benefits throughout the contract review process.
How Does AI Contract Review Work?
At its core, AI-based contract review improves accuracy and accelerates the speed of business while lowering risk. Before exploring the many options available, it’s important to understand the five fundamental competencies of AI-based contract review technology.
- Identify and extract key contract terms. This includes the contract’s parties, subject matter, scope of work, payment terms, and termination provisions. The software should be able to do this automatically, without the need for manual review.
- Compare contracts to a predefined template or checklist. This can help to ensure that the contract meets the company’s standard requirements. The software should be able to identify any deviations from the template or checklist and flag them for the reviewer’s attention.
- Identify potential risks and issues. This includes things like ambiguous language, unfair terms, and potential conflicts with other contracts. The software should be able to identify these risks and issues so that the reviewer can take appropriate action.
- Generate reports on the contract review process. This can help to track the progress of the review and identify any areas that need improvement. The reports should be easy to read and understand, and they should be customizable to meet the needs of the organization.
- Integrate with other systems. This can help to automate the contract review process and improve collaboration between different departments. For example, the software could be integrated with a document management system to allow for easy access to contracts.
Smart, Seamless and Customizable
In addition to these fundamental features, automated contract review software should also be able to get smarter over time, seamlessly integrate into the user’s workflow, and be customizable to meet specific needs.
As the software is used more and more, it should become better at identifying key contract terms, risks, and issues. It should also be customizable to meet the specific needs of the organization. This could include things like the ability to define custom templates and checklists, or the ability to integrate with other systems. Finally, the software should be intuitive and user-friendly, so that even non-legal professionals can use it effectively.
By automating the contract review process, businesses can save time and money, improve the accuracy of their contracts, and reduce legal risk. If you are looking for a way to improve the efficiency, accuracy, and risk management of your contract review process, then automated contract review software is a good option to consider. BlackBoiler’s technology grows smarter and increases efficiency with every use, ultimately cutting contract review time by more than 70%.
Want to Learn More?
BlackBoiler’s automated contract review software can help ensure that your contracts are tailored to your business needs and always in compliance with industry best practices. By taking these steps, you can reduce risk, improve efficiency, and ultimately ensure the success of your construction projects. To schedule a demo of BlackBoiler’s contract review software, click here.
