The legal industry is experiencing a digital transformation, propelled by the demand for ever-greater efficiency, accuracy, and scalability. One of the most revolutionary technologies pushing this change forward is AI. By automating the analysis of legal documents, this technology performs a rapid risk assessment of legal documents, to the point where human participation is no longer even required. An automating clause extraction is now performed at least 10 times faster than human reviewers can do the same job.
Companies that embrace contract review AI nearly always see great leaps in productivity and cost savings. But to get the most out of it, legal departments need to bring AI capabilities into alignment with their current processes and get everyone using the new system. The following “best practices” are intended to make the transition to an AI-enhanced contract review operation go as smoothly and as effectively as possible.
Assess Existing Workflows
Prior to bringing AI into your legal processes, it is vital to understand the present contract review procedure. Identifying workflows from intake and review to approval and storage illuminates pain points and opportunities where AI can add value. This vital step makes certain that AI tools are integrated into the legal function where they will have the most meaningful impact, rather than just adding technology to inefficient systems.
Choose the Right AI Platform
Not every contract review AI platform is formed alike. When choosing one, you should base the decision on the exacting (and sometimes elusive) needs of your legal team that are specific to them and to the situation at hand.
This would include the contract types themselves, the volume of contracts, and the types of features that your team thinks will be helpful (clause extraction, risk scoring, etc.). These details will help you decide between certain AI platforms over others.
Ensure Data Privacy and Security
The information contained in contracts is often sensitive and confidential. When using an AI solution, it is necessary to comply with data privacy regulations, such as GDPR or HIPAA. To guarantee that no relevant data privacy regulations are violated, the use of encryption, access controls, and audit trails should be standard procedure.
A thorough evaluation of the vendor’s security protocols should be a significant part of the presales process.
Monitor, Measure, and Optimize
Integrating AI is not a one-off task. After implementation, the next step is to conduct frequent checkups on the AI’s health and performance. Patience is a virtue here, as the better the AI gets, the less noticeable its presence becomes.
Contract Review AI Is a Game-Changer for Modern Legal Organizations
Melding AI contract review into legal workflows offers transformational potential, but only if done with strategic intent. By evaluating where you are, choosing the right AI tools, protecting legal data, training users, and managing performance day-to-day, organizations can move contract review to the next level while also enhancing general legal decision-making.
As the legal operations ecosystem evolves, making better and more efficient decisions will be ever more essential; AI will be the next indispensable ally in that quest.
