Contracts are one of the core lifelines of any business. They ensure clarity in business deals and safeguard the interests of all parties involved.
Contract lifecycle management demands greater efficiency and accuracy in studying various clauses and legal terms that are essential to ensuring streamlined business operations and risk mitigation.
According to World Commerce & Contracting research, poor contract management continues to cost companies 9% of their bottom line.
But with the digital landscape changing at an unprecedented level as new Generative AI technologies are getting introduced in the market, this futuristic technology is also changing the dynamics of the entire Contract Lifecycle Management (CLM).
Evolution of Generative AI
One of the core technologies powering Generative AI tools is the large language model (LLM), which leverages complex machine learning algorithms and techniques to identify and learn from patterns in the training content, which can include text, code, voice, videos, and images, to generate a new form of content.
From analyzing medical images and reports to uncovering vital patterns that aid doctors in treating patients to predicting the optimized route in logistics based on the learning derived from imperial data, the applications of Generative AI are immense.
Generative AI tools with underlying LLMs can generate various types of content and hold immense potential to rapidly transform the legacy contract management landscape, from contract drafting to analyzing various complex clauses.
How Generative AI is redefining Contract Lifecycle Management (CLM)?
Leveraging the innate capability to generate contextually coherent legal content, Generative AI can be used across various stages of contract lifecycle management, including contract drafting, editing, review, analysis, negotiations, risk mitigation, and much more.
When integrated with standard playbooks and clause libraries with Retrieval Augmented Generation (RAG), it can expedite and offer users a seamless, engaging experience of the entire CLM.
Read the full article at https://www.knovos.com/blog/role-of-generative-ai-in-contract-lifecycle-management/
