The Importance of Artificial Intelligence (AI) in Contract Management
Will AI Shake Up Business Contracts?
To answer this question, Ian King speaks with Monish Darda, Founder and CTO of Icertis in an episode of Business Live on how artificial intelligence is revolutionizing the way businesses manage contracts.
Contract management is an important process that enables businesses to effectively manage their contracts throughout their lifecycle. This involves creating, negotiating, executing, monitoring, and analyzing contracts to ensure compliance and mitigate risks. However, with the increasing complexity of contracts, managing them manually can be a daunting task. This is where AI-powered contract management systems come in.
AI-powered contract management systems leverage the power of artificial intelligence and machine learning to streamline the contract management process. These systems can automate repetitive tasks, reduce errors, and provide insights that can help businesses make informed decisions.
For an in-depth guide on how you can leverage AI for the entire contract lifecycle, see this article.
Here are some of the key benefits of using AI-powered contract management systems:
Improved contracting accuracy
AI-powered contract management systems can analyze large volumes of data and identify errors, inconsistencies, and anomalies in contracts. This can significantly reduce the risk of errors and ensure that contracts are accurate and compliant.
Enhanced contract lifecycle efficiency
AI-powered contract management systems can automate routine tasks such as contract creation, data extraction, and contract analysis. This can save time and improve the efficiency of the contract management process.
Increased real-time visibility into contract processes
AI-powered contract management systems can provide real-time visibility into the contract management process. This can enable businesses to track the status of contracts, monitor key metrics, and identify potential risks.
Better compliance management
AI-powered contract management systems can help businesses comply with legal and regulatory requirements by ensuring that contracts meet the necessary standards and regulations.
Improved decision-making:
AI-powered contract management systems can provide businesses with insights and analytics that can help them make informed decisions. These insights can help businesses identify trends, optimize processes, and improve their overall contract management strategy.
What to Consider When Implementing an AI-powered Contract Management System
However, implementing an AI-powered contract management system requires careful planning and consideration. Here are some of the key factors to consider when implementing such a system:
1. Data quality
AI-powered contract management systems rely on high-quality data to function effectively. This means that businesses need to ensure that their data is accurate, complete, and up-to-date.
2. Integration with other systems of record
AI-powered contract management systems need to be integrated with other systems such as CRM, ERP, and document management systems. This can be a complex process and requires careful planning and coordination. Good contract management solutions need to support these kinds of integrations.
3. User adoption
AI-powered contract management systems require user adoption to be successful. Businesses need to provide training and support to ensure that users are comfortable using the system.
4. Security
AI-powered contract management systems store sensitive and confidential information. Businesses need to ensure that the system is secure and that access is restricted to authorized users.
In conclusion, AI-powered contract management systems offer numerous benefits to businesses that are looking to streamline their contract management process. These systems can improve accuracy, efficiency, compliance, visibility, and decision-making. However, businesses need to carefully consider the factors mentioned above when implementing such a system to ensure its success.
The Icertis Platform
Today, more than a third of the Fortune 100 trust the Icertis Contract Intelligence platform to transform the contract management lifecycle at their organizations. From automated contract analysis to risk assessment, Icertis uses AI to empower you to extract valuable insights from your contracts, reduce errors, and ensure compliance. At any growing business that deals with contracts consistently, contract management software is no longer just a want, but a must-have.
Discover what enterprise contract management software from Icertis can do for your organization and receive a free demo today.