Legal Ops Opens Up a New World With AI-Powered Contract Management

A top priority for Legal Ops teams is improving the contract management process, increasing efficiency, and finding the right legal tech stack. Nevertheless, many organizations struggle with years of disorganized contracts and outdated processes — a huge barrier to your legal team’s productivity. Incorporating generative AI into your contract management lifecycle (CLM) system may be just what your legal team needs.

Generative AI can perform a wide variety of detailed contract analyses that traditional approaches cannot. It has the potential to provide unprecedented levels of accuracy and speed, according to a Pramata blog post on CLOC.org. Unlike traditional CLM systems, it uses a more flexible approach that centers around learning and simulates human-like language capabilities.

There are three ways generative AI in a CLM program can reduce the burden on your legal team and empower them to serve the entire business better:

1. It can quickly summarize contracts, review large numbers of documents, and pull out key terms, dramatically reducing the time that a highly-trained human would need to spend.
2. It can instantly analyze risk, identifying terms and conditions in contracts that either present risk or are non-compliant.
3. It assists in contract authoring by suggesting language based on past agreements and current business objectives. It also identifies any discrepancies between existing contracts and company standards, and alerts attorneys of potential risks based on contract language.

These three capabilities are part of a new world of AI-powered contract management. They demonstrate how generative AI can aid legal teams, helping them work faster, smarter, safer, and for less cost.