Why and how to use AI to generate and centralize contracts in companies?

Contract management is one of the challenges associated with the digitalization of businesses. It presents both legal and organizational challenges. It is important for managers to find a solution to deal with the multiplication of documents, versioning, human errors and even the associated loss of time. It is in this context that artificial intelligence is emerging as a solution of choice for automating, making reliable and centralizing corporate contracts. Are you wondering why to integrate AI into your contractual processes or how to do it effectively? Find out the answers to your questions here.

Why use AI to manage contracts?

The integration of artificial intelligence in contract management is beneficial for businesses in many ways.

Save time

La Drafting contracts is a time-consuming task for businesses, especially when done manually. As indicated by the professionals of Tomorro, AI automates this task thanks to smart models. These can be adapted to the realities of each customer, supplier or collaborator.

In a few clicks, you can generate a well-structured contract containing the right legal clauses and in accordance with internal company standards. It will contain the personal information of the various parties, but also dates, amounts, etc. Integrating AI into the process thus offers significant time savings, especially if you deal with large volumes of contract data. Its usefulness has been proven in the commercial and real estate sectors.

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Limit legal risks

Manual contract management creates risks of formulation errors, omissions of clauses or inconsistencies between different versions. This can have serious legal and financial consequences for your business. By relying on validated legal models, AI greatly reduces these risks.

Well configured, the AI can automatically report missing clauses or not in accordance with a contract. You can also use it to compare two versions to identify variances and adjustments that are needed. If necessary, artificial intelligence offers secure and up-to-date formulations for your contracts. Your legal team thus benefits from greater peace of mind, with the assurance that the regulations in force are respected.

Easily find your documents

Traditional contract management involves files scattered in mailboxes, hard drives, or paper folders. By integrating AI into your document management system, you group all your contracts in a single space that you can consult at any time.

Thanks to the semantic recognition, AI can automatically classify contracts by type, date, or signatory. It is even able to extract information such as the duration, the deadline or the conditions for renewing a commitment. AI allows a smart search by keyword or by expression. This allows you to quickly find a file or folder in case of emergency.

How to set up an AI solution for contracts?

Adopting AI for your system contract data management is done in 3 steps.

Evaluate your contractual flows

First and foremost, you need to identify the types of contracts managed by your business. You need to know their frequency, their level of personalization as well as the actors involved. They can be lawyers, salespeople, human resources managers. The important thing here is to map current processes in order to identify:

• friction points;
• the sources of frequent errors;
• the average duration of treatment.

The definition of your needs allows you to choose the AI solution truly adapted to the size and goals of your organization.

Choose an AI solution dedicated to contract management

Today, there are a multitude of solutions for Contract Management Automation. Many specialized platforms integrate AI modules for fast and efficient contract generation.

They make it possible to centralize documents in a secure space, but also to automate reminders or renewal alerts. Above all, they facilitate the electronic signature of documents. It is up to you to opt for a solution that really meets your expectations.

Involve and train your teams

Like everything digital tool, the success of the project depends on the adherence of users. You must then provide a support phase for this change in your processes. It goes through the team training concerned. You can create guides or tutorials to make it easier to get started with the tools.

Then do some tests on standard contracts. The objective is to show your employees that AI does not replace humans. On the contrary, it makes him more efficient, precise and comfortable in his work.