Artificial intelligence (A.I.) has been making waves in various industries, and contract management is no exception. A.I. is changing how contracts are managed by automating several tasks previously done manually. With the help of A.I, contract management professionals can streamline their workflows, reduce errors and save time.
Here are some ways A.I. is being implemented into contract management:
1. Contract Creation and Review
A.I. can already create contracts by analysing data from past contracts and identifying relevant clauses and terms. A.I. is usually used in reviewing the agreements and creating accurate contracts, legally compliant and customised to meet the parties' specific needs.
2. Contract Analysis
A.I. can analyse contracts to identify the errors of significant terms and conditions, such as payment terms, warranties and termination clauses. For instance, any potential risks and opportunities in the first-drafted contract can be noticed and ensured that all parties involved are aware of them.
3. Contract Management
Contract managers can now manage contracts by automating several tasks, such as sending reminders for contract renewals, tracking contract performance and identifying any potential breaches of contract by using A.I. tools. Besides, the rise of digital platforms can help to manage end-to-end contracting workflow. With this kind of technology, data collection becomes another metric to be analysed and used as the trend in optimising negotiation.
Implementing A.I. in contract management has several benefits, including:
1. Increased Efficiency
A.I. can assist in automating several tasks in the contracting workflow, reducing the time and effort required by the contracting team. Contract management professionals can allow themselves more time to focus on more critical tasks, such as negotiating contracts and managing client relationships to drive productivity and effectiveness.
2. Improved Accuracy
A.I. can reduce errors in contract creation and analysis of large amounts of data and identify potential issues. By carefully choosing metrics and using A.I. solutions, contracts are accurate and legally compliant, reducing the risk of disputes and litigation.
3. Enhanced Security
Traditional contracts have changed in nature when digital contracts step in. Paper contracts are necessary but involve a series of works such as storage, discard and the problem of searching for the archive. A.I. can ensure that contracts are securely stored and accessed only by authorised personnel to lower the risk of data breaches and protect sensitive information.
With the increasing use of A.I. in contract management, it's essential for professionals to stay up to date with the latest trends and technologies in the field because A.I. requires supervision by contracting team members. Professional development courses in Contract Management and Formulation can help in acquiring skills and knowledge, such as contract negotiation, contract drafting and contract analysis to improve the quality of work and increase efficiency.
Professional development courses also provide excellent networking opportunities, allowing professionals to connect with others in the industry and learn from their experiences. By building relationships and expanding professional networks, delegates can be beneficial for career growth.