A Practical Guide to Applying AI to Historical Contract Data

In the latest episode of the Fast ‘Tract, Bernadette Bulacan, Chief Evangelist at Icertis, hosted an engaging conversation with Jeramy Ivener, Corporate Vice President of Customer Success Management at Icertis. 

The discussion centered around the importance of legacy (or "heritage," as Jeramy prefers it) contract migration, and the transformative role of artificial intelligence (AI) in harnessing value historical contract data.

Here are some key takeaways:

1. Think early about how you want to manage ‘heritage’ contract migration

Jeramy emphasized the critical nature of planning and strategizing early in the heritage migration process. He noted that understanding and managing legacy contracts is vital for achieving visibility and ensuring long-term success. He suggested rebranding legacy data as "heritage data" to underscore its ongoing importance to a company's operations.

"The No. 1 best practice is to think about it early and, No. 2, is to have a strategy. What is the data that I need and what's my strategy for that?”

"The No. 1 best practice is to think about it early and, No. 2, is to have a strategy. What is the data that I need and what's my strategy for that?”

Jeramy stressed that heritage data encapsulates the foundational elements of a company's business, and therefore, it should be meticulously managed and integrated into the new systems.

2. Don’t boil the ocean with heritage contract digitization

A common concern among customers is the daunting task of collecting and migrating all the contracts they have spread across the enterprise. Jeramy provided insights on how to prioritize and streamline this process to make it more manageable. He also pointed out that you may not need to migrate all contracts in all cases – it’s all about understanding who you have relationships with.

"It doesn't have to be an overwhelming experience. There is other data from other systems. You know which suppliers you're paying, you know which customers you have that you probably need agreements from. So just having the skeleton and knowing and having a perspective of, ‘here's what I need now.’”

By prioritizing essential contracts and using other systems' data as a guide, companies can effectively manage the heritage migration process without feeling overwhelmed.

3. AI is transforming the value of heritage contract data

Both Bernadette and Jeramy highlighted the significant role that AI plays in enhancing the efficiency and effectiveness of contract management. Jeramy discussed how AI can not only speed up the process of reading and analyzing contracts but also provide actionable insights that drive better business decisions.

"AI gives you the ability to read that contract instantaneously and AI, in this generative AI in the copilots, will give us the ability to read all our contracts at once."

He elaborated on the potential of AI-powered tools, such as risk copilots and contract discovery copilots, to identify risks and opportunities across large volumes of contract data. These tools can help businesses stay agile and responsive to changing conditions by providing timely insights and facilitating informed decision-making.

Jeramy also mentioned the future prospects of AI, indicating that the current capabilities are just the beginning. As AI technology evolves, its applications in contract management will continue to expand, offering even greater value to organizations.

"We're just scratching the surface on what will come from that. If you think about what data do I need and having a structure of your...maybe it's a skeleton in your contract management solution."

Next steps

By prioritizing essential contracts and using other systems' data as a guide, companies can manage the migration process more effectively. Furthermore, AI's role in analyzing and leveraging heritage data provides actionable insights that drive better business decisions, underscoring its transformative potential.

Understanding and strategically managing heritage contract data is vital for any organization aiming for long-term success. This approach ensures that businesses can harness the full potential of their historical data to navigate future challenges and opportunities.