Contracts are the lifeblood of business. Yet managing them remains predominantly manual, time-consuming, and error-prone. Contract lifecycle management (CLM) is ripe for a digital makeover. Artificial intelligence now empowers businesses to transform contract management through intelligent automation.
Â
This creates a paradigm shift – from reactive firefighting to proactive risk management. AI extracts key data points from contracts and structurally organizes them for analysis. This reveals risks, obligations and opportunities at scale, enabling data-driven decisions. The focus moves beyond contract administration to wider strategic impacts.
Â
CLM powered by AI delivers higher ROI through improved compliance, accelerated negotiations, reduced liability, and new revenue streams. Leading this revolution is Kudra – an intelligent document-processing platform. Its versatile AI simplifies contract digitization and structures unorganized data.
The Power Behind Intelligent Contract Management
Artificial intelligence is the driving force in CLM’s digital transformation. Machine learning algorithms can now read and comprehend contracts as well as humans. Natural language processing (NLP) breaks down dense legal prose into structured data.
Â
This enables analysis of entire contract portfolios to reveal trends and derive insights. Risk exposure is minimized as problematic clauses get flagged early. Negotiation positions strengthen with data-backed recommendations.
Â
As AI gets more domain training, it becomes incredibly adept at executing contract management tasks. These include abstracting key terms, detecting risks, providing legal guidance, creating templates and more. This is the concept of contract intelligence.
Â
AI adds brainpower, speed, and scalability to handle high contract volumes cost-efficiently. This frees up legal teams for judgment-intensive tasks like negotiation strategy. Risk analysis is no longer just periodic but continuous, flagged whenever relevant events occur.
The Versatile AI of Kudra
Leading the charge in intelligent contract management is Kudra. This SaaS platform employs advanced AI to simplify and enhance CLM. Its greatest strength lies in its versatility.
Â
Kudra ingests contracts of all types and formats – scanned images, Word docs, and PDFs across languages. Smart OCR technology extracts text accurately. Powerful NLP algorithms parse complex legal terminology with ease.
Users can leverage Kudra’s out-of-the-box AI capabilities or train custom models. Its user-friendly interface allows anyone to build workflows, no coding needed. Workflows automate multi-step document analysis tailored to specific needs.
Kudra’s AI extracts parties, dates, governing laws, limits of liability etc. from contracts. It also detects risks like unlimited liability, adverse change-in-control triggers and unusual termination rights. This data gets exported to databases and BI tools.
What makes Kudra stand out is the ability to enhance workflows with reasoning from ChatGPT. This adds a powerful layer for handling subjective tasks like summarization, classification and anomaly detection.
Kudra also has pre-built AI apps for common CLM use cases – NDA analysis, contract metadata extraction, lease abstraction etc. These deliver quick wins. As requirements grow, workflows can be edited to stay relevant.
Elevating Contract Management with AI
Traditional CLM focuses heavily on contract administration – creation, reviews, approvals, signing, and post-execution obligations. But technology now elevates CLM to a strategic business function.
Â
AI structurally processes contract data at scale to support high-value tasks like portfolio analysis, risk monitoring, and revenue forecasting. This is where the greatest ROI lies but manual approaches fall short.
For example, Kudra’s AI tracks dates and milestones across thousands of contracts. So expiry and renewal timelines, billing cycles, and termination notices never get missed. Data like payment terms, limits of liability, and governing laws get aggregated for analysis.
Â
This prevents revenue leakage from lapsing contracts and minimizes legal exposure from non-compliant suppliers. Businesses gain enterprise-wide visibility into contractual risks and opportunities.
Â
Kudra also enhances the contract creation process. AI reviews templates highlight inconsistent or missing clauses based on past contracts. This reduces rework and accelerates deal closure.
Â
For negotiations, Kudra can benchmark pricing, terms, or warranties against previous deals to formulate strategies. Risks get flagged early before significant exposure. This prevents leaving money on the table or overpaying for liability.
Â
The AI applications are extensive – from lease optimization to evidence discovery and everything in between. Kudra makes contract intelligence accessible to organizations of all sizes.
Transforming Contract Lifecycle Management
Kudra demonstrates how AI can guide better decisions across the entire contract lifecycle – from creation and negotiation to post-execution monitoring and analysis. This transforms contract management.
Â
• Intelligent Creation: AI analyzes past contracts and external data to recommend templates, parties, pricing, etc. tailored to each deal. This prevents rework and builds institutional knowledge.
Â
• Augmented Negotiation: NLP extracts key terms from past deals and external sources to formulate negotiation strategies with data-backed recommendations on trade-offs.
Â
• Continuous Risk Monitoring: Ongoing screening of contract portfolios detects risky terms and milestones. This minimizes liability through early renegotiation or exit.
Â
• Portfolio Insights: Trend analysis of structured contract data reveals performance issues – revenue leakage, liability overages, lapsing renewals, etc. Impact quantification guides decisions.
Â
• Obligation Management: AI tracks deliverables, milestones, and expiration timelines across contract portfolios. Notifications trigger workflows to ensure compliance.
Â
• Optimized Workflows: Intelligent routing of contracts to relevant reviewers and approvers based on deal specifics cut cycle times. This accelerates revenue realization.
Â
This end-to-end integration powered by AI makes contract management proactive, efficient, and impactful. Time and resources get redirected from administrative tasks to high-value analysis.
Conclusion
Contracts underpin revenues and contain risks. AI now unlocks their value through intelligent extraction, structuring, and analysis of critical data at scale. This empowers strategic decisions across the contract lifecycle.
Â
Kudra spearheads this revolution in contract management. Its versatile AI simplifies complex documents like few platforms can. Custom workflows automate multi-step analysis while reasoning from ChatGPT tackles subjective tasks.
Â
Easy to use without coding, Kudra delivers quick wins for common-use cases. As needs grow, workflows adapt to stay relevant. Contract intelligence is now accessible to legal teams of all sizes for optimized outcomes.
Â
Transform contract management with Kudra’s AI today. The future is here.
