We’ve seen technological advances change the way we work, and change the way we do business. What was at first a slow shift—the launch of legal research engines that allowed for easier research at your fingertips, e-signatures for easy signing of legal documents, cloud solutions for data and document management, the ability to be connected and work whenever, wherever—has now become a rapidly changing environment affecting every industry. As we adapt to these new environments, learning how to work smarter, not harder, as the saying goes, is critical to success, and one tool has been driving this change—generative AI.
Love it or hate it, AI is here to stay, and its applications are seemingly endless. AI technology has advanced to generative AI—machine learning that uses algorithms to create different types of content, including text, images, audio, and more. This shift is both exciting and a challenge for legal teams.
Why AI?
The review process for legal contracts is labor intensive and time consuming. It requires hours of meticulous attention to detail. Every clause, compliance issue, or potential risk is searched for, and one overlooked item can mean anything from wasted staff time to millions of dollars in liability. Though thorough, this manual approach offers a multitude of challenges, including, but not limited to:
- Significant time investment
- The demands of managing large volumes of contracts
- The high risk of human error
Using Generative AI for contract review strips away these issues. Large language models (LLM) are designed to essentially do what a human lawyer would do—but in a fraction of the time, including:
- Automating repetitive tasks
- Flagging non-market and unfavorable provisions
- Ensuring compliance with key requirements
- Maintaining consistency
- Streamlining processes
When legal professionals hand these tasks over to AI, they can concentrate on activities that are more complex, nuanced, and require human judgment.
Why now?
Chances are, your legal team, like so many others, is being asked to do more with less. What’s more, the average lawyer spends upwards of 60 percent of their time drafting and reviewing contracts. Using AI for contract review is a way to free up valuable staff time.
In addition to that, using AI for contract review allows for improved risk management. Early detection is the best detection, and when legal teams can use generative AI as a second set of eyes during contract review, potential issues such as problematic terms, items, or clauses can be caught sooner rather than later, saving time and money, and also providing a streamlined process from the jump.
Do I need AI for contract review?
Like all technologies, AI can provide lawyers with significant leverage. Lawyers who are proficient with AI will discover that they can produce higher-quality work more efficiently and effectively than those who do not. Corporate legal teams in particular will find that they can accelerate critical processes across their company and position themselves as business enablers rather than blockers.
Want to experience AI contract review with Ivo in action? Click here
