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.g., sending contracts the AI deems “risky” or “leases” or “Mississippi law” or “French language” to the appropriate place).
AI-enhanced contract negotiation systems can help get contract negotiations done faster, which is highly valuable - saving in-house lawyer time, pulling revenue into earlier periods, and increasing the odds that deals get done (“time kills all deals”). They can also help identify clauses and apply consistent language with respect to the firm or legal department’s official view on an issue or matter.
This is an emerging and thriving subcategory, with both (1) multiple vendors focused solely on building AI-enhanced contract negotiation software and (2) multiple CLM platform vendors including AI-enhanced contract negotiation modules.