How AI Tools Shed Light on Opportunities in your Contracts – A New Downloadable Whitepaper By Kira Systems
Today, legal departments continue to seek ways to be stronger partners of the business, and legal operations leaders are becoming more strategic. As a result, corporate legal departments are increasingly taking advantage of advances in artificial intelligence (AI) technologies to conduct contract review and avoid costly human error.
It’s been estimated that inefficient contracting causes firms to lose between 5% to 40% of the value of any given deal. Furthermore, the sheer number of contracts legal departments need to keep track of often results in a lack of consistency, making it even more difficult for legal departments to efficiently extract relevant data. AI-driven tools like Kira provide context to the information found in large sets of documents, particularly when those documents are varied.
That’s why leading legal departments are leveraging AI-powered contract review software: to mitigate hidden risks in the contract review process (including operational efficiency challenges and human error) and to realize maximum value.
How does the software work?
While the various technologies behind contract analysis software are complex, the underlying concepts can be broken down into two arms of artificial intelligence:
- Systems that apply predetermined rules
- Systems that train themselves, including:
- training themselves without user supervision; and
- training themselves with user supervision
Kira, for example, uses machine learning technology, an application of AI, to extract information from contracts and documents with greater efficiency and accuracy compared to manual review or traditional rules-based systems.
Kira quickly scans thousands of documents and automatically identifies specific concepts or clauses for actionable insights. The software is taught by example; a user uploads sample contracts and highlights the language corresponding to the provisions that the user wants Kira to learn. The software also calculates accuracy statistics for every provision it learns, enabling the user to decide when it is adequately trained for the specific use case.
‘There are almost infinite uses for AI. The power lies in the ability to take large amounts of data and make it actionable.’ – Jennifer Tsai, Manager of Legal Knowledge Engineering at Kira Systems
In addition to mitigating human error, overcoming operational challenges, and uncovering risk and growth opportunities, AI is invaluable when it comes to ensuring regulatory compliance.
Download the whitepaper, Legal Operations & AI: Uncovering Risks & Growth Opportunities in Your Contracts
Super-charge your tech stack
Over the past few years, contract analysis software has become a mainstream solution that clients increasingly expect and request. In fact, in a recent Corporate Legal Operations Consortium (CLOC) 2019 State of the Industry Survey, 72% of legal teams reported having developed a roadmap for planning their technology investments.
As more of these AI-powered tools get adopted, contracting will become faster, better, and easier. Professor Gillian K. Hadfield, a law professor at the University of Southern California who specializes in contract law, believes that AI in contracting will lead to better use of legal talent: “lawyers will shift their focus from routine activities to much more high-value work involved in shaping strategies and navigating complex legal problems.”
However, understanding what AI contracting tools can and cannot do is key to their successful implementation and use. What they can do is shed light on the risks and opportunities hiding within the pages of your contracts. What the can’t do is replace a dedicated team of professionals.
In our latest whitepaper, Legal Operations & AI: Uncovering Risks & Growth Opportunities in Your Contracts, we explore the consequences of inefficient contracting, why building a technology roadmap is important, and where tools like Kira can prove the most impactful to your team and business. Download it today to get a better understanding of why AI and contract review should go hand in hand.
[ Artificial Lawyer is proud to bring you this sponsored article. ]
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