The members of corporate legal departments work optimally when they are engaged in valuable and meaningful work. Employees want to feel appreciated, recognized, and presented with opportunities for personal growth. In other words, they want to spend more time assessing risk, shaping strategies, and solving complex legal conundrums and less time buried in mundane, repetitive, and simplistic legal work. If they don’t, they’ll leave. By way of example, law firms lost nearly a quarter of their associates last year, and studies show that salaries are not the main culprits anymore.
Within the past five years, artificial intelligence (AI) contract analysis has emerged as a logical solution in this regard. The technology has advanced enough to meet the needs of legal departments feeling the squeeze of shrinking labor pools, heavy document volumes, and rising client expectations.
Artificial intelligence contract analysis can help legal teams overcome a number of department-specific challenges. AI can review an agreement in less than five minutes as opposed to 1-2 weeks that it may take an attorney to do, for example. It can even review and assess third-party changes to standard forms—providing a risk assessment of those changes per the company’s AI Digital Playbook.
Companies leveraging AI-powered contract analysis software are seeing increases in productivity and efficiency as well. The catalyst of this transformation is how AI improves contract management processes to free up personnel while also improving the quality and consistency of contract drafts. Below are three ways AI contract analysis is reshaping legal work today:
What makes artificial intelligence contract analysis truly unique is its ability to conform to predetermined rules and guidelines. This capability is possible owing to advances in:
Once a contract draft is uploaded to an AI contract review platform, the following processes occur in a matter of minutes:
Artificial intelligence contract analysis often results in faster, better, and more accurate results. But it’s also important to understand that AI cannot do everything by itself; attorney involvement is still necessary for handling complex negotiations in line with company strategy.
How departments incorporate AI depends on their goals. Presently, the greatest value can be seen in teams that handle large volumes of contracts, as AI reduces time spent on review. As the technology continues to develop further, AI will become a critical part of how all legal teams conduct business.
LexCheck is an award-winning AI-powered contract analysis solution that’s changing how corporate legal departments approach contract review. Contact us at sales@lexcheck.com or schedule a demo to experience the technology first-hand.