Companies process a variety of contracts in their business operations. It can be a sales contract, a revenue agreement, a procurement contract, or a legal contract. Authoring a contract with right clauses and obligations is a complex process and requires a lot of manual effort. Many valuable resources are spent in authoring and maintaining these contracts to ensure accuracy and legal compliance. There is contract lifecycle management (CLM) systems available in the market that can streamline the contract processing in an organization. But they cannot address manual touchpoints in the system that span beyond the scope of the system.
Contracts can come from 3rd party sources, external systems, and legacy systems in the form of PDF or word documents. These documents are reviewed by business users and transferred to CLM systems manually. This entire process takes a lot of time and can involve human errors that result in compliance issues and increase the risk. It takes a considerable amount of resources to identify and correct the errors. Many organizations have dedicated resources to manage contracts and handle their complex process. AI and machine learning can learn complex contract processes and rules, and maintain contracts accurately.
The Live Objects platform can read and learn contracts data from unstructured sources like pdf and word documents. The AI algorithms will mine the various components of contracts like clauses, T&C’s and obligations, and maintain a repository of contracts in the CLM system. This will eliminate the manual effort to read, understand, and create contracts. Live objects can create orders, invoices and other related transactions from the contracts and link them to the source. This will help reconcile the transactions, renew contracts and manage mid-term contract changes.
Live Objects can maintain an intelligent clause library in the CLM system based on the learnings from the existing contracts, that can be used to author new contracts or amend existing contracts. Using AI algorithms, the system can extract obligations from unstructured contract data and help to track them during the contract life cycle. The platform can compare new contracts with the existing playbook and help the users to redline the contract based on matching accuracy. It can alert users for possible actions on the contract. This can reduce the cycle time of contracts and the compliance risk.
Live Objects can perform the process mining of an existing CLM process and identify the bottlenecks to optimize the process. This is part of the closed-loop self-optimizing business process transformation strategy of Live Objects that will discover, recommend, and transform the CLM process with process mining using AI and machine learning. Live Objects can work with any CLM product (Apttus, Icertis, SpringCM, and others) and optimize their process.