Whether you realize it or not, there is a lot of money and potential hiding in your contracts. The only way to figure it out is with effective contract analysis and management. Contract management isn’t a one-day job, it’s an ongoing process that needs to be monitored and optimized to improve the organization’s bottom line. Are your contact data in inconsistent formats? Do you face a struggle in analyzing and interpreting contract language? Is it easy for you to identify and classify critical information hidden in your contracts? The answers to all these questions hint in only one direction - a strong contract analytics system.

Contract analytics is the practice of examining and extracting metadata from an organization's contracts in order to improve strategic planning and risk management. Contract analytics play a major role in monitoring and managing contract lifecycle management, let us understand how it helps contract managers and other stakeholders.

Why automated contract analytics?

An authoritative legal-industry report on the current state of Artificial Intelligence (AI) in contract analysis and data extraction found that 91% of respondents from Fortune 1000 companies apply contract analytics to risk assessment, sourcing, and contract management.

Collect and analyze contracts data and turn it into actionable insights

If you are managing your contracts traditionally, it gives you a tough time when you have to do bulk analysis. Data is useless without insights to guide your decisions. The right data, in the right format, makes all the difference. The data is there and it's time to take action, which can be done well by any effective CLM solution. Aavenir Contractflow, an AI-enabled contract management solution, helps contract managers to scale and optimize their data-driven decision-making. Provide you with insights to improve your compliance.

According to Aberdeen’s research, the best-in-class organizations achieve up to 80% more savings than others through a clearly defined contract compliance process.

Contract analytics identifies and analyses differently worded terms and clauses. Most of the time these clauses are just playing around with words that almost mean relatively the same concepts. It also redlines the terms and clauses which need your immediate attention. In short, contract analytics help you identify the source of non-compliance and missed opportunities. The features like smart contract authoring, template repository, and clause library not only speed up your time-to-signature but also help you stay compliant with laws and regulations.

Help contract managers to win better negotiations

Contract analytics offers a complete analysis of both historical and current data. It flashes light on what terms hidden in your contacts can expose you to risk, how many of your existing contracts are due for renewal, how many are set for autorenewals, etc With Ai-enabled contract analytics, you can also extract the increase in fees once it gets renewed. So all these elements, you can easily summarize, analyze and determine if you should renegotiate with your suppliers for more favorable terms for future renewals or perhaps negotiate amendments.

Add intelligence to your contract reporting

With contract analytics, by turning your static documents into contract intelligence, you gain knowledge into many areas within your contracts that you may have overlooked before. Contract analytics incorporates insight into customized reports that only provide the most pertinent contract data.

Ai-enabled contract management software uses a combination of OCR and deep learning algorithms to extract metadata like contractual terms, clauses, and provisions. When your contractual volume is high, large amounts of data can be extracted with AI. this extracted data provides a 360-degree real-time view of the entire portfolio of contracts.

A journey from data visualization to data insights is right here right now!

By now, it is clear that companies relying on manual contract creation, manual review, and manual approval put their business in harm’s way. The latest technologies like AI, machine learning, deep learning, and natural language processing can help companies analyze contracts more efficiently and effectively. These intelligent algorithms take apart documents, checking and verifying each area of the contract against other approved templates for contract language to show the user how terms and conditions differ. So, start your journey towards automated contract analytics and accelerate compliance.