Prioritizing tasks is an essential component of legal activities. To be effective in a minimum amount of time, all processes need to be optimized. Many tools made available by LegalTech now make it possible to speed up tasks such as downloading and reviewing contracts to help you successfully complete tedious projects.
In this article, we explore how intelligent search for contractual clauses using AI works: the new asset of legal teams.
What is intelligent search for contractual clauses using AI?
Intelligent contract clause search automatically identifies and marks pre-determined contract information such as the names of the stakeholders, the values mentioned and the liability clauses. Instead of reviewing agreements line by line and manually adding information to a repository, this solution takes care of everything:
- Step 1 : You upload a contract into your contract lifecycle management (CLM) tool.
- Step 2 : the tool uses artificial intelligence to browse the document in order to identify and mark the contractual terms sought.
- Step 3 : the contract and the identified clauses are then stored in a repository that can be consulted and accessible at any time.
Legal departments can use smart contract clause search to easily identify contract metadata present in past contracts, review agreements with third parties, or develop analytical dashboards and update contract management processes.
Some examples of contractual information studied
Software for intelligent search for contractual clauses includes certain clauses that are automatically identified. However, you can also create custom clauses for the AI to identify.
The default contract properties fall into two categories: contractual fields and contractual clauses. Contract fields are dates, numbers, and strings: contract date, contract duration, location, contract value, automatic renewal, payment frequency, duration of the refusal option, etc.
Clauses are sections, sentences, paragraphs, or similar segments: amendments, cancellations, data confidentiality, violations, assignees, arbitration, copyright, non-exclusivity, etc.
An essential asset for legal services
If you are used to doing all of these legal tasks by hand, using new technology may seem unusual at first. However, if you are willing to give it a try, you can get a lot of benefits from smart contract clause research.
- Save time : automatic detection saves a few minutes per contract by automatically examining and recording the clauses sought, which quickly translates into considerable time savings.
- Reduce errors : where the error is human, AI guarantees you a 100% success rate.
- Search for previous contracts : optical character recognition (OCR) makes uploaded documents fully searchable in text.
- Maintain compliance : keep meticulous records of agreements made in a secure repository.
- Focus on high-impact tasks : You can focus on strategic aspects of your mission rather than exhausting yourself on tedious tasks.
To go further...
Intelligent contract clause search uses AI to identify crucial contract information, but it's only part of the AI-assisted workflow.
The detection of contractual clauses is completed by listing them in a searchable repository in order to facilitate the reference to agreements made.
The software of Smart Repository also automatically create a summary of the downloads. For example, you may see that half of the agreements made are below a particular contract value threshold. The software managed by the AI edits your favorite clauses and provisions. This then allows sales teams to initiate contracts and to only seek legal aid for complex negotiations.
If contracts are submitted by a third party, you can quickly review and accept suggested changes according to the clauses saved in your favorites and quickly return the contract to the counterparty.
About StoryShaper:
StoryShaper is an innovative start-up that supports its customers in defining their digital strategy and the development of automation solutions tailor-made.
Sources: StoryShaper, Ironclad.
