Contracts, by their very nature, are complex documents that often contain multiple pages, even for very small business-to-business agreements. For much more substantial and ongoing business arrangements, contracts can easily expand to dozens of pages, creating a challenge to quickly and easily find relevant information in the contract.
Often, summaries or databases of specific information in contracts are required for ongoing management. Using AI contract extraction instead of traditional methods, any company can take advantage of improved accuracy, faster processing time and decreased costs for this essential service.
The Old School Method
Through traditional methods, someone is hired to read the contracts and extract or record the relevant information from the contract in a database. This typically includes specific issues such as begin and end date of the contract, services to be performed, terms, and other relevant information.
The role of this traditional type of contract extraction service includes finding the relevant information and entering the details from each contract into the pre-set database. This produces a searchable, manageable way to track contracts. It is costly, it can be lengthy, and there is always the risk of human error in transcribing information.
The Better Option
To eliminate human error and to speed up the process, AI or Artificial Intelligence can be used to quickly scan contracts and efficiently locate the required fields for the database. Not all companies offering AI contract extraction provide the same quality service, so it will be important to understand the basics.
The top AI contract extraction systems are able to identify the required information and highlight it for the attorney that will complete the review. At this point, instead of having to read through endless clauses and legal terms and conditions, the attorney can focus only on the required information.