Artificial intelligence (AI) has the potential to revolutionize contract management by automating many of the routine tasks involved in contract management, such as contract drafting, review, and analysis. Some ways that AI can impact contract management include:
- Streamlining contract drafting by identifying relevant clauses and provisions and suggesting language based on past contracts.
- Automating contract review and analysis by flagging potential issues and anomalies.
- Improving contract risk management by identifying potential areas of non-compliance or disputes.
- Enhancing contract performance management by monitoring and tracking key performance metrics and KPIs.
While AI has the potential to improve contract management processes, organizations should be aware of the limitations and potential biases of AI and ensure that humans are involved in critical decision-making processes. By leveraging the benefits of AI in contract management while mitigating potential risks, organizations can improve their contract management capabilities and achieve better outcomes from their contracts.