Legal Contract Management is one of the most common functions for legal departments and yet may suffer from intractable challenges for several reasons. Gone are the days of Ad hoc approach for creating, drafting, amending, storing, tracking, reviewing of legacy contracts. With the growing business challenges, it has become imperative for companies to align themselves with tech-enabled platforms to not only manage contracts but also gain actionable insights for transactions. This necessitates a deviation from the earlier methods of CLM and involvement of cutting-edge technology, Artificial Intelligence ai based contract management and contract management machine learning, to be specific.
At the outset, AI helps improve tasks and manage end-to-end contract management for the use of in-house counsels. What earlier used to be conducted by human intelligence, is now taken over by Artificial intelligence in the contract lifecycle management. ML algorithms, on the other hand, is about gleaning insights from the data and consumer habits. Put, integration of AI, and ML help reduce operational inefficiencies and transform CLM processes considerably for legal functions. There are a number of ways how ai is changing contracts for legal departments. Read on to known more:
The creation of contracts through standardized contract templates that are more intuitive and responsive, ensures that it delivers a flawless draft. The AI capabilities of the platform can read, interpret, and apply the right concepts to the draft. It then follows the process of automating the review process by identifying predetermined clauses and redefining the contract based on the needs and necessities of the clients.
Vetting of contracts takes place at this stage. Redlining of items, editing of contracts and counseling legal teams appropriately on actionable items brings efficiency in the contract review process.
Once the client approves the contract draft, it heads towards the repository that requires legal teams to monitor and track the terms, deliverables, deadlines, approvals based on the contractual milestones set. The process may involve negotiation, modifications, an extension of commitments, and re-reviewing the obligations as per the present requirements.
While the execution of contracts was primarily manual, the recognition of e-signatures and e-franking under the Information Technology Act of 2000 has made it possible for the e-execution of contracts and agreements (except those documents expressly not recognized under the Act). Further, specifc state stamp duty laws (including Maharashtra) verifies electronic records under their purview of “instruments”. Hence, this explains the validity of the e-franking and e-signatures under Indian laws.
To this end, PracticeLeague Legal Contract Management software aims to reduce several roadblocks in the way to create, manage and execute the contracts.
While intuitive processes augment most of the functions that humans do, it is also about creating a seamless process to manage the CLM efficiently. In-house counsels can now focus on the critical aspects of contracting such as negotiating deals, litigation and mentoring and advisory roles for their organizations
Contract Management software for in-house counsels typically have huge volumes of contracts involving vendors, suppliers, clients, who carry out primary and third-party contractual obligations. Understandably, one of the top priorities here is to reduce and control legal costs, minimize the dependence on external counsels, and improve matter and contract management operations by leveraging the right technology platforms. PracticeLeague’s "Next-gen AI-powered Legal Contract Management Platform" comes to play. With its cognitive and predictive capabilities, ai powered contracts attunes itself to improve outcomes and build efficiency in the existing processes.