AI contract analysis software: a buyer's guide

August 23, 2023
Discover what AI contract analysis software is, how it works, and which AI contract analysis platform is right for you.

What is AI contract analysis software?

AI contract analysis software is a technology used to review, comprehend and extract key information from contracts. It's used by in-house legal teams and law firms that manage contracts at scale and need a faster, more efficient way to review and analyze them.

How does AI contract analysis software work?

AI contract analysis software uses artificial intelligence and machine learning to identify patterns and inconsistencies in contracts. This process is also known as contract analysis.

The AI is trained to spot these patterns and inconsistencies by studying large sets of contracts. The AI becomes familiar with the typical components, language, and terms within a contract, and this enables the software to recognize deviations from these norms. 

Using AI in this way enables businesses to automate the contract analysis process, rather than manually reviewing each contract in detail. 

Types of AI contract analysis software

When evaluating AI contract analysis platforms, it’s important to recognize the different types of AI contract tools on the market and how they vary. What works for one business may not work for another. 

Point solutions for contracts

Some AI contract analysis solutions will be point solutions. This means that they focus on AI contract review or contract analysis, but they don’t deliver value in other stages of the contract lifecycle

Kira is a good example of this type of AI contract analysis software. With Kira, contracts live outside of the platform but are imported as static documents for analysis. The AI then creates contract summaries and captures the relevant data points. These can either be exported or kept within the tool. 

All-in-one solutions for contracts

The other type of AI contract analysis software is better known as AI contract management software as it offers features to streamline and automate the entire contract process - not just the analysis phase. 

For example, Juro delivers powerful AI alongside browser-native, end-to-end contract management features. This means that Juro users can create, review, negotiate, approve, sign, store, track, and renew contracts within the platform. But they can also use Juro’s legal AI Assistant to automate the contract analysis process.

If you're looking for an all-in-one AI contracting platform that enables you to agree contracts up to ten times faster than traditional tools, hit the button below.

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Who uses contract analysis software?

Contract analysis software is typically used by contract managers and contract specialists. However, it can also be used by other stakeholders that want to gain insights from their contracts quickly and efficiently.

Usually, it will depend on the size of the business, who owns the contracts, and what the contracts are being analyzed for.

Benefits of using AI contract analysis software

1. Faster contract processes

Automating the contract analysis process with AI makes the entire contract lifecycle faster and more efficient. Commercial teams no longer need to wait around for legal to manually review and analyze contracts from scratch. Instead, they can prompt the AI to do the initial analysis, which speeds up the process.

2. Effective risk mitigation

AI contract analysis software empowers teams to identify and respond to key contractual risks before they materialize.

Juro users can even add their contract playbooks to the platform to instruct the AI on what legal risks and deviations look like for their business in particular. This information is used to flag terms they typically push back on and clauses that deviate from what's usually expected in certain business contracts.

3. Reduced contract admin work

AI contract analysis software automates the routine, repetitive admin tasks associated with contract review and analysis. This frees up legal's time for higher-value projects and the review of more complex contracts with higher risk and reward.

For fast-growing businesses with lean legal teams, these time-savings can be critical to the organization's success.

4. More visibility into contracts

AI contract analysis tools can also improve visibility into contracts across the business. This is because the AI transforms lengthy legal documents into digestable contract abstracts that can be shared with other stakeholders in a matter of seconds.

Juro's Legal AI Assistant can even be prompted to turn these insights into a format that can be shared with specific stakeholders, making it quicker and easier to share this information.

What to consider when choosing an AI contract analysis tool

1. Privacy and data protection

Privacy is a big concern for many businesses considering any type of AI software, and it's often something that the business sees push back from legal on.

But we don't believe that your organization should have to choose between efficiency and privacy. We're confident that you can have both.

That's why we built Juro with privacy in mind. We are offering EEA hosting for our interaction with GPT and have ensured that contracts and prompts are not sent to train LLMs.

Juro is also SOC2 Type 2 compliant and holds the IASME certification for GDPR compliance, so our data processes are already gold standard.

2. Accuracy 

Legal teams are naturally concerned about the accuracy of AI contract analysis software, and they're right to expect a high level of precision when working with legal documents.

However, advances in large language models have totally changed the game. AI contract tools are more accurate now than ever before.

That said, it's still important to opt for an AI contract analysis solution that lets you put the right safeguards in place.

That's why Juro's AI Assistant has an inbuilt guardrails feature that enables legal teams to set the parameters of agreements on a template level in natural language. Juro users can even add their contract playbook to improve the accuracy of the output and mitigate AI risks.


3. Functionality

It sounds obvious, but you also need to consider what you actually need AI contract analysis software to do. If you only want to streamline the analysis process and are happy to use separate tools for other stages of the contract lifecycle then a point solution will work well.

However, if you to streamline the entire contract workflow and manage contracts in one unified workspace, an all-in-one tool like Juro will more suitable.

Analyze contracts in seconds with Juro's AI Assistant

Juro’s AI contract collaboration platform enables your team to create, execute and manage contracts 10x faster than traditional tools. This means increased productivity, lower costs and faster routes to revenue.

To find out more about Juro's rich set of features and how they work for businesses like yours, check out our case studies or fill in the form below to book a personalized demo.

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