Contracts are essential for any business, as they define the rights and obligations of the parties involved in a transaction. However, creating, managing, and reviewing contracts can be a tedious and time-consuming process, especially when done manually. That’s why many businesses are turning to contract automation, which is the use of software to streamline and simplify the contract lifecycle.
Take a look at Ontra AI in this space as one of the leaders. Another participant in this space is Latch.
Contract automation software allows users to generate contracts from templates, negotiate and sign them online, and store and monitor them in a centralized repository. Contract automation software can also help users ensure compliance, reduce errors, and improve efficiency and productivity.
But contract automation software is not just a digital replacement of paper-based processes. It is also a powerful tool that leverages artificial intelligence (AI) to enhance and optimize the contract workflow. AI is the ability of machines to perform tasks that normally require human intelligence, such as understanding natural language, extracting data, and making decisions.
AI can help contract automation software in various ways, such as:
- Drafting contracts: AI can help users create contracts faster and easier by using natural language processing (NLP) to understand the user’s intent and generate contract clauses based on predefined rules and best practices. AI can also learn from previous contracts and suggest optimal terms and conditions for each scenario. 12
- Reviewing contracts: AI can help users review contracts more accurately and efficiently by using NLP to analyze the contract text and extract key information, such as parties, dates, amounts, and obligations. AI can also compare the contract with internal policies and external regulations and flag any risks or issues. 34
- Managing contracts: AI can help users manage contracts more effectively and proactively by using machine learning (ML) to monitor the contract performance and compliance, and alert users of any upcoming deadlines, renewals, or changes. AI can also provide insights and recommendations on how to improve the contract outcomes and relationships. 56
By using AI, contract automation software can offer more value and benefits to users, such as:
- Saving time and money: AI can help users save time and money by automating repetitive and routine tasks, such as data entry, document sorting, and contract generation. AI can also help users avoid costly mistakes and disputes by ensuring contract quality and compliance. 78
- Increasing revenue and customer satisfaction: AI can help users increase revenue and customer satisfaction by enabling faster and smoother contract processes, which can lead to shorter sales cycles, higher conversion rates, and lower churn rates. AI can also help users deliver personalized and consistent experiences to their customers across the contract lifecycle. 910
- Gaining competitive advantage and market leadership: AI can help users gain competitive advantage and market leadership by providing data-driven insights and best practices, and enabling innovation and adaptation to changing customer expectations and market conditions. 1112
There are many contract automation software providers in the market, but some of the software leaders in the space are:
- Icertis: Icertis is a cloud-based contract management platform that offers AI-powered features, such as contract creation, risk analysis, obligation management, and contract intelligence. Icertis serves more than 1,000 customers, including Microsoft, Airbus, and Daimler. 13
- DocuSign: DocuSign is a digital transaction management platform that offers contract automation features, such as contract generation, e-signature, and contract lifecycle management. DocuSign also offers AI-powered features, such as contract analytics, clause identification, and contract optimization. DocuSign serves more than 500,000 customers, including Salesforce, Google, and Amazon. 14
- Ironclad: Ironclad is a contract workflow platform that offers contract automation features, such as contract drafting, collaboration, and approval. Ironclad also offers AI-powered features, such as contract extraction, classification, and reporting. Ironclad serves more than 200 customers, including Dropbox, L’Oréal, and Mastercard. 15
Contract automation and AI are transforming the way businesses create, manage, and execute contracts. By using contract automation software with AI capabilities, businesses can achieve faster, better, and more creative contract solutions, and ultimately, more successful and satisfying business outcomes.
