What is generative AI?
Artificial Intelligence has increasingly become the must-have technology for businesses to increase revenue, reduce costs and stay ahead of the competition. This is even truer for businesses that rely on modern contract management technologies to manage their business agreements.
Generative AI is a branch of artificial intelligence that can create new content or data from existing ones. New content it can create includes text, images, or other media in response to prompts. It can use natural language processing (NLP) and deep learning techniques to analyze, understand, and generate natural language texts.
Based on its input data and sophisticated statistical models, it predicts and generates new data that has similar characteristics. Simply put, generative AI is AI! Read on to discover what this will mean for modern contract management.
How will generative AI change contract management?
Contract lifecycle management (CLM) is a contract management process that involves drafting, reviewing, negotiating, and executing legal agreements between parties. It can also entail monitoring compliance, performance, and risk throughout the contract lifecycle.
Traditionally, contract lifecycle management tools have relied on manual and rule-based methods that are prone to errors, inefficiencies, and delays. However, with the advent of generative AI, a new paradigm of contract lifecycle management is emerging.
Generative AI was made for contracts
With the ability to interact conversationally with natural language, large language models can quickly summarize contracts and classify their components. Components such as pricing information, clause attributes, expiry dates, etc... can be extracted out of lengthy contracts within seconds and presented to the user.
In short, generative AI is very good at summarizing long texts. Think about how much time can be saved if you can just ask a bot when a contract expires!
Certain CLM technology offerings have also been trained on contract attributes specifically, so they can identify different clause types. That can be very useful when reviewing a high volume of contracts - think of portfolios of contract types like NDAs or master service agreements for a business division, for example. With generative AI, legal and non-legal professionals handling contracts can easily understand their commercial agreements and act.
Generative AI benefits:
- It can improve contract compliance and quality by minimizing errors and risks by ensuring alignment with the parties' goals and expectations.
- It can accelerate contract review cycles by as much as 40% by optimizing terms and conditions, standardizing clauses, and flagging non-compliant clauses intelligently.
- It can enable companies to innovate and adapt to changing markets by surfacing new insights from their contract data.
To learn more ways to successfully incorporate generative AI into your contract management process, read the insider tips here.
Does the Icertis Platform offer Generative AI capabilities?
Yes, it does! Introducing Icertis Contract Intelligence Copilots. Icertis Contract Intelligence Copilots revolutionizes contract management by providing professionals with assistive, generative, natural language capabilities that cut through legal-ese to deliver insights, accelerate contract reviews, and more to drive your business forward. Built on the Icertis ExploreAI Service, Icertis Copilots keep your valuable contract data safe and secure.
You can use it to review and summarize lengthy contracts in fractions of a second, flag non-compliant terms intelligently, suggest improvements, and negotiate better terms.
Some benefits of using Icertis Contract Intelligence Copilots are:
Free up your time for deeper strategic work
Icertis Interactive Insights Copilot creates concise summaries of lengthy contracts, highlighting key terms, conditions, and obligations. This makes it easier for stakeholders to review and understand the key sections of a contract without reading the entire document. With this lightning-fast capability, contracting professionals can reduce lengthy and expensive legal review cycles.
Get your contract questions answered intelligently, on the fly
With Icertis Copilots, you can use natural language prompts or keywords to generate contract clauses that match your requirements. You can use the interface to check for specific clauses such as indemnity, liability, terminations. Or you can request alternative clauses be generated based on your organization's guardrails and playbooks. Here are some sample questions the interface has intelligently answered:
- How long do contracts of this type take to get approved?
- When does this contract expire?
- Do we have any other SOWs with this vendor?
- What ESG policies do we require suppliers to include in their contracts?
- In which countries are these clauses always negotiated?
And more. Icertis Copilots’ natural language prompts enable you to surface new insights instantly that may have previously taken hours to analyze manually.
Surface what matters to you, when you need it
The Icertis Risk Assessment Copilot parses and review attributes in all contract agreements. This enables it to intelligently trigger alerts and interventions when a certain attribute in the contract is beyond the threshold value allowed by the business. Such as when a contractual value or payment terms in a SoW (Statement of Work) exceeds a certain threshold.
By alerting companies to these real-time insights, generative contract AI delivers real, tangible savings to enterprises, often on the scale of millions of dollars.
Automate high volume contract reviews
An AI-powered CLM tool does this by comparing contract attributes against your specific risk criteria to ensure required clauses and approved language are present in every agreement. Icertis Risk Assessment Copilot earmarks agreements that don’t require further review and identifies and helps you address missing or noncompliant attributes, so you can focus on growing your business.
Secure and responsible AI
Generative AI is not a replacement for human expertise or judgment in contract management. Rather, it is a powerful tool that can save time, augment human capabilities, and enhance human decision-making. ExploreAI by Icertis is built on Microsoft Azure Open AI, which offers a comprehensive approach to security, and privacy, and ensures your company’s valuable security, compliance, and privacy policies and processes remain intact. Icertis is committed to making sure AI systems are developed responsibly, that they work as intended, and are used in ways that people can trust.
See it in action
With Icertis Contract Intelligence Copilots, powered by generative AI, contract managers can focus on important tasks while ensuring top-quality contracts. To see the Icertis Copilots generative AI capabilities and how that can transform your business, contact us, or request a demo.
