Imagine being able to make fully informed decisions each time you sign a new contract or encourage your clients to do the same. In an ideal world, contracts would be clear, succinct, and free of complex legal jargon. After all, no one wants to enter into a binding legal agreement with terms that are at best unclear.
In reality, though, these lengthy documents often raise more questions than they answer. For lawyers, line-by-line studies require hours of focused attention, and there's still room for misinterpretation and general human error.
Enter TermScout. In 2018, TermScout arrived on the scene and introduced a powerful AI tool that reviews contracts, streamlines and refines data for in-depth market comparisons, converts complicated terms into easy-to-understand language, and lets users know whether or not their defined criteria are met. Paired with diligent, human quality control measures, TermScout saves users considerable amounts of time and makes comprehensive and effective contract review infinitely easier.
Research has consistently shown that plain language contracts take 60 percent less time to negotiate. That’s why TermScout prioritizes transparency, market data, and reasonableness throughout the contract review process. But how does it all work?
The Problem: Contracting is Broken
Contracting is broken. Reading, evaluating, and comparing contracts takes way too much time and is a frustrating nuisance for everyone involved. Worse still, it's often unfruitful. For most companies, the inability to extract meaningful information from contracts makes them graveyards of lost data, rather than sources of business intelligence.
Billions of contracts are being written and signed each year. Although the volume and legal complexity of contracts have changed, many companies and their legal teams are still relying on old, outdated measures to analyze, interpret, and evaluate these agreements. As increasing amounts of money are at stake and more business operations are governed by contracts, the need for a contracting solution is evident.
The Solution: AI Contract Review
Reading and comprehending contracts is one thing. Being able to accurately assess their value and merit in comparison to similar contracts within an industry is another thing entirely. And that’s not even taking time into consideration.
For lawyers, accurate and thorough contract review is a tedious and incredibly time-consuming task. However, for anyone reviewing these documents, effective comparisons require a level of data mastery and efficiency that only AI can provide. Automated contract benchmarking is the fastest and most effective way to conduct a thorough, word-by-word study of a contract, retrieve its relevant data points, and use these to make accurate comparisons and informed decisions.
Can You Trust AI in the Legal Environment?
Professionals throughout the world have been waiting with bated breath for artificial intelligence for quite some time. But now that AI is here, learning to trust these new and increasingly sophisticated technologies is a challenge of its own. This is especially true in the legal industry where accuracy and understanding are of the utmost importance.
The fact is that AI remains a largely alien presence even as it's being quickly integrated into professional and personal use. How AI works and why it works are two things that are still largely misunderstood.
TermScout has eliminated the uncertainty from this equation by using the best parts of AI and complementing it with HI (human intelligence). TermScout's AI-powered contract review tool does the heavy-lifting, and contract experts ensure that the work is done correctly. This second step in the review process balances the distribution of labor between man and machine, ultimately guaranteeing optimum outcomes at fair prices.
Why AI is an Essential Part of Contract Reviews
Making sure that contracts meet acceptance criteria can be accomplished by wading through the legal jargon and terminology manually. However, making sure that they compare well to market is a Herculean task of its own.
It's estimated that 68 percent of consumers are already using AI without even knowing it and 44 percent of global companies surveyed by Harvard have already integrated AI into their operations as well. Whether legal professionals use online search tools to perform their research or leverage cutting-edge data management systems, machine learning has already found its way into legal processes in various incarnations. Contracting is the next necessary evolution.
A Step-by-Step: What TermScout's AI-Powered Contract Review Tool Does
When using the AI-powered contract review tool from TermScout, users start by defining their expectations or the criteria that they hope to find within the contracts being assessed. The platform then scans the contract text and converts it into structured data that's easy to organize, easy to analyze, and easy to compare. Finally, contract experts review the resulting data to ensure its quality.
The resulting review enables customers to quickly determine how any given contract compares to their specific acceptance criteria, with 99% accuracy. From start to finish, the entire review process has been streamlined for efficiency, efficacy, and security.
Taking TermScout For A Spin
Testing the waters of AI is a must, and giving TermScout a try is a cinch. TermScout’s Free plan enables users to search for one of more than 1,000 public contracts to begin the process (e.g., the standard contracts offered by companies like Microsoft, Salesforce, IBM, and Google). As the contract review tool breaks everything into answers that are essential for making informed signing decisions, you can sit back and let TermScout break contracts into the questions and answers that matter.
When the work is done, you'll have irrefutable data to make confident line-by-line comparisons. TermScout's AI takes every bit of the guesswork and risk out of signing contracts by giving users data that's actually worthwhile.
Efficient and Effective Contract Review
AI contract review is undeniably a time-saver, but the pairing of AI and HI allows for a greater level of overall accuracy, as well. When using TermScout's AI-driven tool, attorneys and their clients have two different forms of specialized intelligence working to make their lives easier. TermScout helps users avoid:
- Disagreeable contract terms
- Hidden clauses
- Hidden costs
- Uncertainty about what’s market for contract terms
TermScout can even help users see through the inefficient wording of contracts that ultimately provide better value by identifying terms and inclusions that might otherwise go overlooked. In short, it cuts through jargon and provides the true meaning of these documents in clear, straightforward terms.
Companies and their representatives can get a clear view of costs, provisions, and more, all without wasting their time wading through unnecessary and potentially misleading terms. Ready to experience the power of automated contract review for yourself? Get started for free today!