Save up to 85% of your time when checking contracts, whilst avoiding reading lengthy documents and repetitive terms. Sounds appealing? Read on!
The revision of contracts before closing a deal costs legal teams a lot of time, nerves and money. The conventional way to go about it is to read through every single text line to find and understand the key clauses a contract contains. Now imagine doing that for a wave of 50 incoming contracts that all need to be reviewed within a very short timeframe, how would you handle that?
Each contract needs to be checked for compliance and additionally scanned for possible risk clauses. That might sound like an interesting treasure hunt, but when you consider that 7 out of 10 requests to legal teams involve low-value, recurring contracts, it becomes clear that this is actually a pretty repetitive and tiring task.
Why are legal teams often snowed under with work?
On average, the manual review of a single contract takes up to 24 hours of paperwork divided on to three different departments and costs around 800 Euros per contract. Knowing this, it might sound surprising that 80% of contracts are actually still managed using manual processes today, which literally means reading clause after clause to find the hidden terms. With hundreds of new contracts coming in each month, legal teams are often snowed under with work. Additionally considering the back and forth that is needed between the various divisions and delays in their communication, a contract review can easily take several business days to be finished.
Much to the detriment of procurement managers for example, who constantly have to make smart purchase decisions and keep their suppliers happy. Efficient and timely review and negotiation of contracts are crucial for procurement divisions as delays put project timeframes at risk.
How artificial intelligence can majorly improve the process of contract review
Artificial intelligence (AI) is able to read and understand legal language and cannot only identify contracts and provision types, but also key contractual data like penalty clauses, warranty periods and due dates. Just imagine how much effort you could save your legal teams to focus on more important tasks than scanning contracts clause by clause.
With a more efficient contract review and compliance check, deals could be closed faster, the overall-turnover of your business increased and your procurement and legal teams freed of recurrent chores. In the future, intelligent contract review automation could save up to 85% in time and costs spent on this tedious work.
At Legartis, we believe that reviewing contracts can be simple. Legal documents should no longer be a burden but a source of intelligence. Legartis AI understands legal language and enables you to extract key contractual data instantly. Let us show you how to turn contracts into your competitive advantage and make better business decisions, faster. Schedule a non-binding demo now.