December 6 by Dennis Garcia
The contracting process is about taking smart risks and inspiring trust. Those factors will only grow more important as legal organizations embrace digital transformation. Artificial Intelligence (AI) solutions that get smarter over time, powered by massive amounts of data, can help lawyers earn that credibility and use information more thoughtfully and quickly.
Lawyers using tools for contract analytics can embrace the “growth mindset” and better leverage their past experiences from prior deals and transactions to help their clients take smart risks in subsequent matters. Doing so will also help break down silos as legal and business teams can internally share data and lessons learned.
A contract analytics tool that uses AI could review a finalized set of contracts to identify trends, such as how often a company agreed to a non-standard provision, the total negotiation time of particular deals and the types of contract issues that arose, among other elements. The learnings from such tools can help drive future enhancements to standard contract terms, support smarter decision-making and increase the velocity of closing key contracts.
It has been said that “data is the new oil” and data is often an untapped resource in many legal organizations. Key industries like healthcare, retail, and financial services are increasingly using data and AI tools to enhance their businesses and better serve their customers.
Law firms and legal departments should leverage data and AI to learn more, to provide high impact client service and to stop doing repetitive tasks so they can practice law at a higher level and use their judgement to offer more value-added trusted legal advisor services. Legal organizations that are open to this kind of digital transformation will be better positioned to differentiate their legal services and provide higher valued support to their business clients.