Getting More Valuable Insights with Contract Analytics Technologies
Nowadays, in-house corporate counsel and companies need to know what is contained in all of their legal documents. They need to be fully aware of their details — and be able to rely on them for data-related answers. Nevertheless, the sheer volume and complex nature of those documents make it difficult to stay on top of, let alone manage, all of those legal details.
Fortunately, data analytics is being applied to the legal sector at a rapid pace. Using advances in artificial intelligence (AI), machine learning, and cognitive computing, such legal technology draws unique insights from legal document data. It helps legal and other departments keep track of pertinent contract details, like key performance indicators (KPIs), and risks and obligations. It helps them make data-driven decisions and develop all-too-important legal strategies.
Now, here is how advanced contract analytics, within legal automation systems, help legal teams and companies gain more valuable insights, and improve legal operations and the business.
Looking at Analytics Technologies for Legal
These days, the application of advanced analytics is not only vital to legal departments but also entire enterprises. They need to deliver legal services more efficiently and effectively, offer new services and cost savings, and develop data-driven strategies.
Whereas data analytics has long had a significant impact on a variety of sectors and industries, it is increasingly helping legal and other departments meet their own business needs and goals.
When it comes to legal data, augmented analytics go a long way in discovering, interpreting, and communicating valuable, actionable insights. Contract review tools analyze proposed contract terms, determining what proposed terms of a contract are acceptable, and which ones are not. They identify and review potential errors before agreements are finalized. Just think about the amount of time that is spent reviewing and negotiating contracts, which include standard terms and conditions, without this legal tech!
Also, it can be difficult to keep close tabs on contract performance, ensuring agreed-upon terms and obligations are met properly. This is the case for companies that have a number of active agreements with many different parties. But similar to contract review AI tools, those focused on performance easily extract and visualize key contractual terms and conditions. Following this step, they compare these with an organization’s own metrics and figure out whether or not obligations are being met within the company.
At the end of the day, such digital tools help legal teams and companies make true use of their legal document data and deliver full, customized reports.
Improving Analytics Technologies Through AI
To support contract lifecycle management and help analyze legal document data, AI-driven analytics uses machine learning algorithms and natural language processing (NLP). It uncovers important trends and actionable insights and finds previously unseen patterns within rather large data sets.
In the next three years, 50 percent of supply chain organizations will invest in applications that support artificial intelligence and advanced analytics capabilities, according to Gartner. This is expected to improve analytics fivefold, allowing legal departments and companies to better handle legal document data and make important decisions.
Getting the Whole Truth of Legal Documents
As mentioned above, the best legal document-specific analytics help legal teams and companies get ‘the whole truth’ of their legal documents. More specifically, a legal tech solution with deep legal analytics:
- Provides macro and micro visibility into complex metadata across legal document database
- Identifies and analyzes legal document database trends, and helps informs business decisions
- Measures achievements after quantifying and benchmarking legal processes and goals
- Recognizes the gaps in the legal management platform and optimizes legal operations altogether
- Helps reduce risk via insights on main contractual risk drivers
Dynamic analytics dashboards support in-house legal teams and companies even more. They include:
- Contract risk analytics that offers a risk profile of a company’s entire contract portfolio
- Obligation analytics that provides a view of obligations and metadata across all contracts, whether buy-side or sell-side.
- Key indicators that provide insight into the performance of legal teams against their individual team goals and planned business outcomes
Making Data-driven Decisions Based on Advanced Contract Analytics
Indeed, the information age is still relatively new. So, contract intelligence promises to accelerate even further. More and more companies will integrate legal analytics technologies into their workflows by adopting and implementing contract management software and other legal automation systems. Legal departments, in particular, will be able to leverage vast amounts of data to make intelligent, information-based decisions and see far better business outcomes.
ContractPodAi Cloud’s Legal DeepSights expands on the advanced contract analytics and dashboarding that are on the market. The feature is the first metrics-based dashboard that helps legal functions measure their own business achievements. It helps to gauge their alignment with critical business-wide outcomes, too.
Download our Legal DeepSights data sheet today. And see how you can quantify the value you bring to your company.
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