Reduce Costs and Risks by Applying AI and ML to Your Contracts
As the uncertainty around COVID-19 continues, our team at ElectrifAi is looking for new ways to help our customers save costs, mitigate risks, and get back to business as usual. We know that many businesses are trying to find new ways to work lean. This means ensuring all your resources go further and work harder. Efficiency is the North Star of this season.
With that in mind, we wanted to help existing ElectrifAi customers get the most out of our products. In this article, we’ll cover how ContractAi helps your team get more out of your existing contracts. Here are 3 ways to leverage ContractAi to help your business find stability during this global crisis.
What is ContractAi?
ContractAi is our artificial intelligence (AI) and machine learning (ML) powered SaaS solution that translates raw contract data into insights. Businesses use it to expose hidden risks and opportunities across all company-wide contracts.
ContractAi understands inaccessible and complex contractual language and clauses, enabling full contract visibility with unprecedented accuracy. It empowers you to take action in the most business-critical moments like the ones we’re in today.
How ContractAi helps your business during a crisis
1. Reduce costs
Many businesses are looking for ways to find more cash by reducing unnecessary expenses. ContractAi’s built-in transparency keeps your team informed about where and how it is overpaying for software or services.
According to McKinsey & Co, “Suboptimal contract terms and conditions combined with a lack of effective contract management can cause an erosion of value in sourcing equal to 9% of annual revenues.”
ContractAi facilitates supplier consolidation by enabling side by side rate cards and rebate terms between suppliers. Procurement teams can use the seamless comparison to switch to suppliers who offer better pricing, value, or rebates.
2. Make faster, better decisions
ContractAi empowers your team to make faster data-driven decisions. With tools like side-by-side contract clause comparison, you can assess opportunities more quickly across multiple contracts. Pinpoint how each contract fits into your larger business goals and context. Access greater contract clarity to empower faster decision making.
ContractAi also saves your team the time, effort and cost it takes to find and organize internal contracts. For example, you can quickly find third party contracts who are assignable after a merger or acquisition. Without ContractAi, your team would have to comb patiently through each contract to stumble upon those exact contract terms. In ContractAi, the same task could be completed in seconds using the search bar.
Speed is especially necessary when dealing with risky contracts. ContractAi automatically identifies clauses and categories to aggregate all relevant information into one place. Access all of it, in real-time, within your user-friendly ContractAi dashboard to make sure you make sound, timely decisions—even with risky contracts.
Faster decision-making is irrelevant if those decisions turn out poorly. Hand-in-hand with ContractAi’s speed is its accuracy. Since ContractAi accesses all company-wide contracts at once, you have instant access to the best information about your business. As contract deadlines approach and overlooked opportunities get discovered, ContractAi aggregates and highlights this information for your team for easy leverage. This aggregation helps you prioritize urgent decisions to make sure your team doesn’t miss out on important opportunities or procrastinate into bad contract terms.
Most businesses have more data than they know what to do with. Making that data actionable is ContractAi’s key function. This comes into play with understanding where you do and don’t have contracts. By applying artificial intelligence to your entire contract ecosystem, you can quickly visualize where you’re lacking important contracts so that you can fill those gaps.
3. Assess risk
ContractAi can also help your team understand where you have high vs low risk. How do your current contracts safeguard you against the current volatility? Where does your team have room to pivot toward safety or new opportunities?
ContractAi uses risk scoring to evaluate up to 10+ risk factors across your contracts, prioritizing the highest-risk contracts first to help you pinpoint potential challenges. Your team can distill volumes of complex information down to a simple metric that displays your level of risk on a spectrum from 1 to 10.
ContractAi’s pre-trained extraction models—like force majeure, dispute resolution, governing law, termination for convenience, termination for cause—help assess supply chain and termination risks, especially in extraordinary situations such as pandemics. Furthermore, these extractions can enable advance planning in the event of another downturn of the economy. For instance, using Contract Ai you could quickly identify all the supplier agreements that have restrictive termination provisions and amend/renegotiate them.
Legal risk is another important consideration. ContractAi helps you compare current and potential contracts against industry regulations to make sure you maintain compliance. Use the search and compare features within ContractAi to draw risky clauses to the surface for closer consideration.
Contracts can be one of the safest ways to protect your team and business interests during uncertainty. But when you don’t know what’s in your company-wide contracts, it’s easy to make redundant purchases, uninformed decisions, or simply overlook big opportunities within the contracts you’ve already signed.
ContractAi uses industry-leading artificial intelligence and machine learning to give your organization better clarity and transparency, empowering you to make better decisions, faster.
Now is the time to mitigate risks, cut unnecessary expenses, and leverage your best tools and resources. ContractAi is the ultimate contract intelligence tool for mitigating risk, informing compliance, and making the right call when it matters most.
Not a ContractAi user? Learn more about ContractAi and how it can help your business during COVID-19 and beyond.