AI-based contract management & contract analysis

05/22/2023

Manage business relationships effectively, identify potential risks and opportunities: Structured contract management and contract analysis are crucial for companies. However, analyzing and evaluating contracts is time-consuming and requires corresponding resources. With the latest AI technology, many work steps can now be completely automated - AI-based contract management significantly increases efficiency in companies across a wide range of industries.

AI-based contract management and review

Contract management

Digitalization, automation and process optimization

Natural Language Processing can be used to analyze contracts and transfer the information they contain as structured data into inventory systems. In a very short time, important information - such as contracting parties or deadlines - is evaluated from unstructured, long texts. Even very large volumes of documents can be processed quickly and with very high quality. AI reads texts on a human level, only faster and more precisely. Contract management becomes scalable. Contract management using AI means automation of workflows and more efficient business processes.

Contract Analysis

Automated contract review

Detect relevant content with very high accuracy (> 96%): NLP-based contract analysis enables companies to analyze contracts in a precise and automated way. By identifying potentially critical clauses or contract terms, companies can minimize risks and maximize opportunities. The entire contract portfolio can be reviewed and evaluated quickly and in a structured manner. This enables strategic decisions to be made on the basis of facts.

The technology behind it

Natural Language Processing (NLP)

Natural Language Processing (NLP) is a subfield of artificial intelligence. It involves developing AI software that analyzes (reads) and produces human-level language. The technology is used in a variety of applications - for example, chatbots, speech recognition, machine translation and sentiment analysis. And in particular, automated information extraction from documents using NLP technology is a great lever in the digitization and automation of business processes. At the heart of every NLP solution are AI models.

AI on the contracts

Scalable information exploitation

Scalable utilization of information even from complex contracts: AI reads contracts on a human level - but is faster, more accurate and more structured.

Based on Natural Language Processing (NLP) with Deep Learning methods, even long, complex and/or particularly large numbers of contracts can be processed - regardless of the format, the structure of the documents and the input channel.

Main benefits of automated contract management and contract analysis:

Time saving

One of the biggest advantages of AI-based contract analysis is the time it saves. The fast and efficient evaluation of information from texts saves time and resources. Especially when dealing with a large number of contracts, the analysis is manually very time-consuming or even hardly feasible in a realistic way.

Precision

Contract analysis using NLP technology is precise. The technology can evaluate and analyze contracts in a very accurate way and identify specific clauses or terms. This increases data quality and reduces the error rate.

Automation

Work steps that were previously performed manually can be partially or fully automated using NLP technology. In particular, data entry and time-consuming searches through large amounts of text for specific information are now a thing of the past.

Scalability

Analyzing contracts efficiently is scalable. The technology can be used in different areas of the company and to automate a wide range of process steps. Contract analysis for contracts in different languages or evaluation of the inventory with regard to further legal framework conditions also enables use at international level.

Industries that particularly benefit

Analyzing contracts makes efficient and competitive

The automated reading and analysis of contracts using NLP technology offers great advantages to companies from a wide range of industries, especially those that have to process a large number of contracts on a regular basis.

Legal industry

Law firms and courts benefit from AI-based contract analysis, from shorter processing times for legal cases and more efficient management of contracts. Furthermore, conflicts and risks in contracts can also be identified - lawyers then still check themselves, of course, but the AI selects and evaluates in advance, which significantly speeds up and simplifies the process.

Financial industry

Reduction of compliance risks and shorter document processing time: In the financial industry, the use of NLP technology is a clear competitive advantage. In addition to contract analysis, Natural Language Processing can also support the review of incoming credit applications.

Real estate industry

From process optimization in management to property evaluation and offer optimization to analysis of the entire contract portfolio for a solid basis for decision-making - the use of Natural Language Processing to process complex texts is revolutionizing real estate management and sales.

Blog Article: AI in the real estate industry

Insurance industry

Insurance companies can use contract analytics to quickly and accurately analyze insurance terms and clauses. The technology can also help identify fraud patterns in insurance claims.

Case Study: AI-based analysis of industrial insurance contracts

Trade

Retail companies can analyze contracts to ensure they are operating in compliance with regulations and legal requirements, for example in contracts with suppliers or consumers. In addition, the technology is predestined for use in the automated processing of orders.

Order Management using AI

E-commerce industry

E-commerce companies can use contract analysis to analyze contracts with suppliers and partners and identify and sustainably minimize potential risks. In addition, NLP technology can be used to check data protection guidelines and terms of use in a structured manner for a wide range of factors.

Abteilungen

Process optimization in the business units

Enterprise Contract Administration & Contract Management

Across industries, the use of Natural Language Processing to analyze contracts is a great lever for increasing efficiency in a wide variety of departments within companies.

Legal Department

Every legal department benefits from less manual effort and higher precision when using AI-based contract analysis. In addition, the AI solution facilitates contract review by pre-selecting and initially assessing (“potentially critical”) relevant text passages.

Purchasing

Checking supplier and partner contracts quickly and effectively for specific criteria is no longer a time-consuming, manual task with the help of NLP technology. Potential savings or possible risks can be identified quickly and precisely.

Controlling & Finance

All contracts under control - data transparently available at all times: The finance department can use contract analysis to review credit and leasing contracts, optimize them, and minimize compliance risks.

Human Resources

Employment contracts under control: Deadline management and checking all contracts for included provisions - the HR department can use contract analysis to analyze documents quickly and effectively. In addition to reducing administrative work, NLP technology is a vehicle for ensuring compliance with labor law and data protection regulations.

Sales

Identify upselling potential in customer contracts, evaluate sales agreements - but also process e-mails and inquiries automatically: The use of NLP technology in sales increases efficiency and, not least, sales.

Conclusion

AI in contract administration and management

Until now, the structured management and analysis of contracts - especially in larger companies with many contracts - has been a complex, difficult and time-consuming undertaking.

The use of AI-based contract analysis makes it possible to significantly increase efficiency, improve data quality and not only work faster, but also identify potential, minimize risks and create a basis for important strategic decisions.

Across industries, companies and a wide variety of departments benefit from analyzing and evaluating contracts in a structured manner. The use of NLP technology creates competitive advantages and is scalable - this means sustainable digitization and future orientation.

Systematic analysis of contracts

The AI system for contract analysis

Process automation using Intelligent Document Processing

With our AI system kinisto, information from contracts of any length and complexity can be converted into structured data and quickly processed further - regardless of the input channel, formats or structure of documents.

Basic process for document processing with kinisto:

More about kinisto

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