Contract review is both a costly and time-consuming exercise which involves reviewing high volumes of contracts within tight deadlines. It’s a monumental task for legal teams that creates bottlenecks for business transactions. Highly trained lawyers are kept from doing high-value work while they make their way through thousands of contracts.
This problem is increasingly being solved by teams using AI. While it is unlikely that AI will replace lawyers on sophisticated legal matters, there’s plenty of legal work that can be automated. AI is most adept at tackling repetitive tasks making due diligence exercises ideal candidates for automation as contracts use fairly standard language.
Companies that use ‘playbooks’ to negotiate contracts are even better suited to automating the contract review process. A contract playbook is essentially a checklist that breaks down the elements of a contract into its constituent provisions along the lines of what is acceptable for an organization and what is not. The AI is trained on this playbook, over a range of examples accommodating for variance in clause texts. Once trained, the AI can ingest a contract and quickly highlight provisions that are not compliant with the playbook. It can even suggest ideal text where a clause does not match the playbook’s standards. (You can learn more about Playbooks to Automate Contract Review here.)
You can automate your contract review processes using SpotDraft’s award winning AI‒ SpotIQ. SpotIQ increases efficiency in a host of ways:
- While SpotIQ sifts through the contracts, lawyers can focus on high-value and bespoke work.
- With speedy contract review, organizations can close deals much faster and not be bogged down by the due diligence process.
- SpotIQ can provide the lawyers with a bird’s eye view of all the pressing issues that most need their attention.
- SpotIQ gets more accurate the more it gets used.
SpotDraft enables abstraction, review and deviation analysis, and answers questions on LOIs and other transactional agreements in a few seconds per contract using Artificial Intelligence. You can explore our features at Spotdraft.com.