AI contract management software: what you need to know

AI
August 3, 2023
6
min
Find out how AI contract management solutions can help your legal team to stay ahead and agree contracts 10x faster.

What is AI contract management?

AI contract management describes the use of artificial intelligence (AI) to streamline, automate and improve the contract lifecycle

Legal teams use AI to automate repetitive and low-value contract admin work, allowing them to focus on the higher-value tasks that require legal expertise. It means less time spent on routine admin work, faster contract lifecycles, and more time to focus on the projects that matter most. 

Some legal AI tools, like Juro, will even empower you to agree contracts 10x faster than traditional tools. To find out more about how this would work for your business, hit the button below. Otherwise, read on.

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What problem does AI contract management solve?

When we surveyed lawyers at high-growth companies, two-thirds said they felt buried in low-value work

We all know the low-value work they’re talking about. It’s the time spent finding and amending contract templates for the hundredth time, or repeating answers to routine questions. 

Legal AI assistants have the potential to transform in-house legal’s workload and automate the manual tasks that distract lawyers from higher-value work. In fact, Goldman Sachs estimate that almost half of legal tasks can be automated with artificial intelligence. 

Contract management is a perfect use case for this automation, with Juro’s AI contract lifecycle management platform empowering businesses to agree contracts 10x faster than traditional tools and processes. This means more time to work on the big projects that matter.

Thanks to Juro, we have more time to spend on corporate governance, as well as ongoing data protection and compliance work - Alicja Kwiatkowski, Head of Legal, Iptor

Before we dive into how AI contract management works, let’s look at where lawyers stand on the use of AI, specifically for contracting. 

The rise of AI-enabled contract management

Our recent Tech GC Report revealed that over half (55 per cent) of the legal professionals surveyed either already use, or intend to use, generative AI in the future.

When asked about potential use cases, many lawyers shared plans to simplify, review or analyze their contracts with AI. 

Some use cases are fairly common, like drafting contracts, inserting provisions, or using AI-enabled tools as an assistant to complete the preliminary work before fine-tuning - Patrick Hicks, General Counsel, Trust & Will

We'll explore each of these potential use cases for AI contract management in more detail shortly. First, let's cover why now is the best time to consider AI for contract management processes, and what's changed in the past few years.

Artificial intelligence in contract lifecycle management: why now?

Legal AI isn't a new topic. The first generation of AI has been around for some time. It just hasn't been widely adopted. There are a few reasons for this:

  1. The first generation of AI couldn't promise the accuracy that the new generation of AI can.
  2. Businesses had to invest a lot of time training the models themselves, which meant it took a long time to receive value from the tools.
  3. The potential use cases for legal teams were relatively limited before the new generation of AI, with most tools focused on extracting unstructured data from static files.

Since then, there's been a step change in AI can do for contract management and other legal processes. It's much more accurate, with many more use cases.

AI platforms have moved beyond an ask-and-answer format; now there are hundreds of use cases that can benefit legal - Caroline Iroegbu, General Counsel, Clarity
Advances in large language models have totally changed the game. Accuracy is much much better and the range of tasks that can be completed broader - Richard Mabey, CEO, Juro

What can AI contract management software do today that it couldn't a few years ago? Let's discuss how AI contract management software works today, and which use cases are most popular among legal teams.

How does AI contract management software work?

Lawyers can leverage AI throughout the contract lifecycle, from automating the contract drafting process to using AI to flag key risks in a contract during the contract review phase. 

What’s possible will depend on which contract AI tool you use, and the functionality available. 

Juro’s all-in-one contract collaboration platform offers the functionality needed to create, review, negotiate, approve, sign, store, and track contracts more efficiently. However, Juro’s AI Legal Assistant feature can add value in a few, more specific ways. 

1. AI drafting

Juro’s AI Legal Assistant enables businesses to generate contract drafts in seconds based on the information you provide in a request. This request will briefly explain the context of the contract and describe your requirements for the contract or clause you’re using AI to generate. 

Drafting contracts can be incredibly time-consuming - so using AI Assistant to support is a no-brainer - Michael Haynes, General Counsel, Juro

Juro users can even set specific guardrails and conditions to minimize risk when automating contracts.

For example, Juro users can set parameters like “we won’t agree to liability caps in excess of $1m” and trust that these will be reflected in the output of the AI when prompted.

This empowers businesses to create contracts quickly and efficiently without losing control of their contents and parameters.

2. AI summarize

Juro’s AI Assistant can also summarize contracts, making the information within them easier for stakeholders to digest. This is also known as contract abstraction

Juro users can either summarize whole contracts or individual clauses. Contract owners can even customize their request to determine the length, nature, tone, and audience for the contract summary

This makes it quick and easy for contract owners to share important contract data with colleagues. It also reduces the time senior stakeholders spend trying to read and understand legal documents in full. 

Here's an example request shared by Juro's General Counsel, Michael Haynes, that can be used when using AI to summarize your contracts:

Summarize this contract, including an overview of the the following bullet points: duration, committed fees, liability caps, and warranty period. Flag any deviations from our playbook.

3. AI review 

Juro users can use AI Assistant to review contracts and identify the risks within them, too. For example, you can request for the AI Assistant to identify and flag all of the key legal risks in a contract.

The AI will then collate the contractual risks in a clear response, giving you instant visibility into what these are and letting you know which clauses you should focus on during negotiations.

This typical of AI contract review software and AI contract analysis software, and it empowers legal teams to speed up the contract review process, resulting in faster sales cycles and fewer blockers for commercial teams.

But that's not all. Juro is an end-to-end solution for contract management, offering features that streamline the contract lifecycle at every stage.

This means that Juro users can create, review, negotiate, review, approve, sign, store, track and renew their contracts within the tool.

This functionality isn't available in point solutions that focus on AI drafting or review alone. Instead, point solution users will rely on several different tools throughout the contract process. Juro, on the other hand, lets you manage your contracts in one unified workspace.

To explore Juro's rich set of features in more detail, book your personalized demo today.

What to consider when choosing AI-based contract management software

It’s easy to get caught up in the hype around AI-based contract management, especially given how it can transform your contract process.

However, it’s also important to remember the risks associated with choosing the wrong AI contract management solution.

The biggest risk is choosing a vendor that doesn't prioritize the privacy of your customers (and their customers).

With so many vendors rushing to the market, few will have doubled down on privacy. This could mean a few things.

  1. It can mean that your contracts and customer data is used to train aggregated models
  2. It could result in a lack of transparency around where sensitive and personal data is stored and how it’s used. 
Many new entrants coming to market seem to have forgotten that contracts are your most sensitive business documents - Richard Mabey, CEO, Juro

Unlike these solutions, Juro’s AI contract management software was built with privacy and security in mind

How does Juro differ from other AI contract management tools?

Your contracts and our legal AI Assistant are EEA-native, operating on highly secure cloud servers operated by AWS and Microsoft. We’ve also committed not to use customer data to train large language models (LLMs).

On top of that, Juro has processed more than one million contracts in its browser-native platform so far, and we’ve maintained a reputation for lawyer-grade, uncompromising security.

With Juro, you don’t have to choose between efficiency and security when managing contracts.

Juro's AI contract management software offers a fast, secure and controlled way to automate routine contract admin, enabling you to focus on higher-value tasks. 

To find out more about Juro’s legal AI Assistant and how it can empower your business to agree contracts up to ten times faster than traditional tools, fill in the form below. 

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