AI is all the rage and contracts appear to be the domain where AI is most applied. Furthermore, the application of AI is centered more on existing material contracts than the creation, review and negotiation of new agreements.
Why is this the case? Simple. A company may spend three months negotiating a complex contract but spend three years living with the obligations. Most companies breathe a sigh of relief after the contract is signed, then move on.
As such, when a company is faced with needing to understand their contract obligations (in the event of a dispute or M&A transaction), amend their contracts to comply with regulatory changes, or determine how to reduce the cycle time for negotiating a contract by comparing the end provisions to the starting point template, they turn to their single source of truth–their high integrity contract repository–for Insights. But wait! Most companies have not put one in place. The natural extension of this is that the adoption of AI has been slower than expected, but we at Elevate believe that this will accelerate over the course of 2020.
This is why we are focusing deliberately on our Contract Insights services, which have led the market for over eight years and have provided Insights to our customers through the analysis and review of almost 10 million contract documents.
To enable thorough obligation management, regulatory compliance, contracting efficiency and the productive application of AI we believe it is imperative companies take a management approach that proactively obtains insights contained in their contracts.