Unlock Contract Value: ROI Rules of AI in Legal Tech

In today's fast-paced business environment, contract management is no longer just a legal formality; it's a strategic imperative. Businesses are increasingly seeking ways to unlock the hidden value within their contracts, and Artificial Intelligence (AI) is emerging as a powerful tool. This article delves into how AI is revolutionizing contract lifecycle management, turning static legal documents into dynamic business assets. Discover how companies are leveraging AI to improve efficiency, reduce risk, and drive better business outcomes. Prepare to explore the ROI Rules of AI in the world of legal tech.

What is the Return on Investment with AI Contract Management?

For many companies, contracts are often relegated to a lawyer’s office after they are negotiated and signed, only to be consulted again when renewal time rolls around.

However, modern businesses are realizing that their contracts hold valuable data and insights that can be leveraged to improve operations and drive strategic decision-making. The question then becomes: how can businesses unlock this Hidden value?

Artificial Intelligence (AI) provides the answer. By integrating AI into Contract Lifecycle Management (CLM) software, companies can transform their contracts from static legal documents into dynamic, actionable business assets. This transformation enables businesses to:

• Improve Efficiency: Automate repetitive tasks, such as contract review and Data Extraction, freeing up legal teams to focus on more strategic activities.
• Reduce Risk: Identify potential compliance issues and mitigate risks proactively, ensuring adherence to regulations and minimizing legal exposure.
• Drive Better Business Outcomes: Gain real-time insights into contract performance, enabling data-driven decision-making and improved business outcomes.
• Manage relationships: Improve relationships with suppliers and clients.

This AI-powered revolution is changing how companies view and manage their contracts, driving significant improvements in efficiency, risk management, and overall business performance. The key is understanding how to effectively implement AI to achieve these benefits.

By understanding how to redline a contract with AI we can help businesses to run effectively.

Enter Sirion: A Pioneer in AI-Driven CLM

Sirion is a leading provider of contract lifecycle management (CLM) software designed for in-house legal departments.

For over a decade, Sirion has been helping companies digitize their Universe of contracts into a single, searchable database, extracting key metadata such as clauses and obligations.

The Contract Management software has recently been upgraded with Generative AI functionality, designed to make it a valuable tool for the entire company, not just the legal staff. As Gordon Thompson, Sirion's Executive Vice President of Pre-Sales and Business Strategy, explains, "It gives you real-time information on how to run your business and gives you the insights you need to pivot so that you can make the best decisions with the best data at the right time."

Sirion's contract lifecycle management software is empowering businesses to move beyond traditional contract management and leverage AI to drive strategic decision-making and improve business performance. By providing real-time information and actionable insights, Sirion is helping companies transform their contracts into valuable assets. This is extremely valuable in highly regulated industries and legal intensive industries. You get data and insights when you need them.

Legacy Systems vs. Modern Solutions

Many companies still rely on manual processes and legacy systems for contract management. This can lead to inefficiencies, errors, and missed opportunities. Contracts are often stored in disparate locations, making it difficult to find and access Relevant information. Moreover, manual review processes are time-consuming and prone to human error.

Sirion is transforming these traditional systems by offering a single, digitized platform for contract lifecycle management. This platform leverages AI to automate key tasks, such as:

• Contract Creation: Use AI to generate contract templates and automate the drafting process.
• Contract Review: Automatically review contracts for compliance, risk, and key terms.
• Data Extraction: Extract relevant data from contracts, such as clauses, obligations, and deadlines.
• Performance Monitoring: Track contract performance against predefined metrics and identify potential issues.

By automating these tasks, Sirion is freeing up legal teams to focus on more strategic activities, such as negotiating complex agreements and providing legal advice. Moreover, Sirion's AI-powered insights are enabling businesses to make better-informed decisions and improve overall business performance.

The key to Sirion's success is its ability to Blend AI with human expertise, creating a collaborative environment where technology augments rather than replaces legal professionals. This approach ensures that contracts are not only managed efficiently but also reviewed thoroughly and strategically.

The Generative AI Advantage

While AI has been used in CLM for some time, the emergence of generative AI is taking contract management to a whole new level. Generative AI algorithms are capable of not just analyzing contracts but also rewriting clauses, generating new contracts, and providing intelligent recommendations.

Sirion is leveraging generative AI to enhance its contract review functionality, allowing legal teams to:

• Identify Risky Clauses: Automatically detect clauses that may pose a risk to the business.
• Rewrite Clauses: Generate alternative clauses that better protect the company's interests.
• Generate New Contracts: Create entirely new contracts based on predefined templates and business requirements.
• Provide Intelligent Recommendations: Offer recommendations on how to improve contract terms and conditions.

By utilizing generative AI, Sirion is helping companies to create and manage contracts that are not only compliant and enforceable but also aligned with their overall business strategy.

However, implementing generative AI effectively requires careful planning and expertise. As the Podcast points out, Large Language Models (LLMs), which power generative AI, can be expensive to build and maintain. Therefore, businesses need to carefully consider their options and choose an AI partner that has the experience and resources to deliver a successful solution.

Step 1: Digitize Your Contract Universe

The first step towards leveraging ai in contract management is to digitize all of your existing contracts. This involves scanning paper contracts and converting them into electronic documents. Once digitized, these contracts can be uploaded into a CLM system like Sirion, creating a centralized repository for all of your legal documents.

Step 2: Extract Key Metadata

Once your contracts are digitized, the next step is to extract key metadata, such as clauses, obligations, and deadlines. This can be done manually or automatically using AI-powered data extraction tools. Extracted metadata should be stored in a structured format, such as a database, to facilitate search and analysis.

Step 3: Implement AI-Powered Analytics

With your contracts digitized and key metadata extracted, you can now implement AI-powered analytics to gain insights into contract performance, identify potential risks, and improve decision-making. This may involve using machine learning algorithms to:

• Predict contract outcomes
• Identify compliance issues
• Optimize contract terms and conditions

Step 4: Integrate AI into Business Processes

The final step is to integrate AI into your existing business processes. This involves using AI-powered insights to inform decision-making in areas such as procurement, sales, and risk management. You will want to ensure your contracts are easily accessible to the correct departments within your organisation.

Customized Pricing Models

Sirion understands that every business has unique needs and requirements. Therefore, they offer customized pricing models tailored to your specific circumstances. Several factors contribute to your CLM solution costs:

• Company Size
• Number of Users
• Features Needed
• Level of Customization needed.

To learn more about Sirion pricing, contact them directly through their website.

AI-Powered contract Management

Sirion offers a comprehensive suite of features designed to streamline the entire contract lifecycle, enhanced with cutting edge AI:

• Automated Contract Creation: AI algorithms for efficient template generation and drafting.
• AI-Driven Contract Review: AI automatically detects risks and ensures compliance.
• Intelligent Data Extraction: Key data, such as clauses and obligations, is pulled from the contract.
• Real-Time Performance Monitoring: Constantly monitor metrics to identify potential problems before they arise.

Industry Applications

Sirion’s AI solutions offer something for each industry.

• Financial Services: AI can be used to identify and mitigate financial risks embedded in contracts.
• Healthcare: Ensure compliance with regulations such as HIPAA and protect patient data with enhanced contract review.
• Manufacturing: Optimize supply chain contracts and reduce costs with AI-powered data extraction and analytics.
• Technology: Manage complex licensing agreements and protect intellectual property with automated contract review.

By using automated data extraction and insights Sirion’s AI helps each industry to leverage the value from its contracts.