The 2023 Legal Trends Report shows that 69% of legal practices don’t use AI, but 51% of professionals want to implement it in the future.
Of all the options, AI contract review software stands out the most.
It interprets complex language structures and extracts important information with cutting-edge technologies like machine learning (ML) and natural language processing (NLP).
The tool also suggests sound changes for legal documents and points out risks.
So, if you’re pondering on getting this indispensable tool, here’s everything to know!
Benefits of Implementing AI Contract Review
AI contract review software has several benefits for your legal team and the organization.
Let’s check them here!
1. You Can Focus on More Crucial Tasks
Legal contract review and modification are extremely time-consuming.
If your team receives a large number of contracts, they’ll lose valuable time on this redundant task.
However, with an AI contract review tool, they won’t have to read tedious contracts with repetitive information manually.
They can upload contracts on the tool and let it review and modify them and remove contractual risks.
Meanwhile, they can use their talent and time on other high-impact tasks that help in client retention.
2. It Is a Scalable Solution
AI contract review software can process bulk contracts faster in a shorter period than manual reviews.
It analyzes and extracts vital information quickly, ensuring higher productivity and speedy reviews.
As the overall process is accelerated, your organization can close more deals faster and grow.
3. It Ensures Higher Accuracy
Despite how skilled your team is, mistakes are always possible, especially when working under tight deadlines and with high volumes of contracts.
If you opt for AI review software, you can reduce the chances of human error.
There will be higher precision in your review game.
Reliable AI contract review software from LegalOn especially offers review services that find risks and suggest ways to fix them.
It also has predefined and custom playbooks (guidelines, rules, and templates).
These identify key clauses and risks and ensure compliance with regulatory requirements, ensuring consistent, efficient, and error-free contract reviewing.
4. It Saves You from Greater Expenses
An effective AI review contract software reduces your need for the labor cost of a huge team for contract reviews.
Instead, your organization can use the saved resources in other areas.
Moreover, if you recruit a novice for contract reviewing, there’s a high chance they’ll make mistakes.
If overlooked, this can lead to hefty prices.
With AI contract reviewing, you can accelerate their learning curve and ensure consistent results for every client.
5. It Learns Something from Every Contract
While reviewing contracts, AI software learns something from every little detail.
For instance, it helps you track how often a certain clause is used and its impact on the overall negotiations.
It also helps you find past contract details (from the ones stored within the software).
Thus, you can even refer to older contracts and modify the new ones accordingly based on previous experiences.
Considerations To Integrate AI Contract Review
To successfully integrate the software with your workflow and get the most benefits, remember these essential things.
1. Customize the Software
Get suitable AI contract review software and integrate it into a small part of the review process, such as risk assessment or clause extraction.
Clearly define the software’s needs, goals, and direction.
Customize settings and templates.
Train it on high-quality, clean data for the best results.
2. Evaluate Tool Performance
Schedule tool performance evaluations and seek input from key stakeholders (e.g., legal teams, contract managers, etc.).
Once you get satisfying results, implement the tool in bigger areas and even integrate it into existing tools for a smoother workflow.
AI tools work smoothly with regular updates, so download all updates regularly and update the tool with new laws and regulations for effective results.
3. Train the Team
Your team needs comprehensive triaging to make the best of this software.
Train them on using it effectively, including what customizations are important for the organization.
Offer continuous support throughout the learning phase.
4. Don’t Replace Humans
AI tools can only streamline and enhance the contract review procedure.
It can only help your legal team, not replace it.
So, manually read contracts once more to ensure refined legal language before finalizing it.
Conclusion
Currently, business success depends on embracing digital transformation and the power of AI to streamline tasks.
So, select trustworthy AI contract review software and enjoy improved efficiency.
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