Contracts AI in the Core Contracts Ecosystem
What is Contract Analysis Software? Sometimes, companies (and the professionals who serve them) need to review contracts in bulk. Generally, these projects tend to break down into two broad categories: (1) event-driven contract reviews (i.e., help determine implications of a company sale or financing (e.g., M&A due diligence) or a major change event (e.g., Brexit or the LIBOR transition)), and (2) knowledge management contract reviews (e.g., loading details of legacy contracts into a company’s CLM; a law firm trying to determine “what’s market” in private merger agreements).
What is contract management? Contract management (sometimes known as contract administration) is the process whereby contracts get: created, negotiated, approved, executed, amended (if necessary), and post-execution renewed or terminated, obligations tracked, and intelligence from them gleaned. Not every company does each (or any!) step systematically. Many enterprises appear increasingly focused on contract management. While it is possible to manage contracts without purpose-built software, the Contract Lifecycle Management (CLM) software space is booming, with well over 100 vendors in it (including several unicorns).
What is contract negotiation? Contract negotiation is the process by which parties agree to a contract. It is a regular (and often painful) activity for law firms and in-house teams. How AI can help in contract negotiation In contract negotiation, Contracts AI can help: automate markups (by spotting acceptable and unacceptable language), suggest or automatically make revisions (by knowing fall-back clauses (from playbooks or precedent) or how negotiators have dealt with similar situations in the past), and triage review (by, e.