Generative artificial intelligence (genAI) is not just a tool; it’s a transformative force impacting many, if not most, industries with its advanced data generation and optimization capabilities. In contract management, where efficiency, accuracy, and compliance are paramount, genAI offers significant benefits worth exploring.
This blog highlights three practical applications of genAI in contract management: Redlining, Legal Helpdesk, and Contract Data Migration. These use cases are available now to in-house legal personnel and can be a good jumping off point for leveraging genAI in provision of legal support.
GenAI-enabled redlining is accelerating the contract review process by employing artificial intelligence to assess and mark contracts swiftly and accurately based on a client’s contracting standards. This approach, whether performed by the in-house team or a legal services provider, ensures rapid analysis of contract terms, facilitating quick identification of discrepancies and suggesting necessary revisions.
A genAI-enabled legal helpdesk represents a breakthrough in providing immediate support, guidance, and information for frequently asked legal and compliance questions. Compiled relevant policies and processes allow employees to receive instant responses to commonly asked legal questions. A Helpdesk model ensures enhanced productivity by handling routine queries, allowing the in-house legal staff to concentrate on more strategic matters.
Historically, the transition from one contract management system to another represented months of work to port over legacy agreements. Without this legacy data, new CLM applications are less effective for users. GenAI technologies now allow legal departments to significantly speed up the timeline to complete and reduce the cost of migration to the new CLM system, with a focus on the key data that needs to be captured in the new system.
This is equally true for companies that are acquisitive and inherit the legacy contracts of an acquired company. There is great benefit to port these contracts to a centralized repository for ongoing data analysis and risk management.
GenAI is transforming the field of contract management by providing significant advantages in accuracy, efficiency, and productivity. All signs indicate that genAI capabilities will increasingly become integral to the effective management of contracting portfolios. For organizations looking to not delay and get started today leveraging genAI, Redlining, Contract Data Migration and the rollout of a Legal Helpdesk represent quick and effective wins.
By leveraging an experienced legal services provider who has already embedded genAI into their service offerings for these use cases and others, is a great way to quickly realize the power and benefits of this new technology. Additionally, the service provider approach alleviates the worry of having to deal with change management or complex IT procurement hurdles.
Author: Gabriel Buigas
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