Why AI-Driven Contract Benchmarks Matter

The legal world is struggling with the rapid adoption of GenAI, According to a Gartner survey revealing that a striking 70% of legal, compliance, and privacy leaders cited it as a top concern. Amidst this evolving landscape, legal teams continue to face persistent, time-draining inefficiencies, especially around drawn-out negotiations and inconsistent contract expectations. But what if AI, the very technology causing some concern, could offer a powerful antidote to this specific pain?

Enter AI-driven contract benchmarks.

At TermScout, we're transforming the way contracts are negotiated by using data-backed contract standards to establish what’s fair, balanced, and aligned with contract market standards. By leveraging contract benchmarking with AI, companies can finally bypass the endless redlines and get to the real work: closing deals, faster and with greater confidence.

Ready to Skip the Back-and-Forth? Explore AI Benchmarks

Discover how AI-driven contract benchmarks provide data-backed standards for faster, fairer deals and improved negotiation

What Are AI-Driven Contract Benchmarks?

What’s “standard” in a contract? That used to be up for debate. Now, it’s grounded in data. AI-driven contract benchmarks analyze thousands of real-world agreements to identify common terms, such as standard payment timelines (e.g., net 30, net 60), typical intellectual property ownership clauses, and frequently included service level agreements (SLAs). They also assess risk levels associated with various clauses, highlighting deviations from market norms in areas like liability limitations, indemnification obligations, and termination rights. Furthermore, benchmarks define acceptable ranges for key parameters, like the cap on liability (e.g., typically capped at a multiple of fees) or the duration of warranty periods within specific industries. This gives your legal, sales, and procurement teams the confidence to push negotiations forward—armed with facts instead of assumptions. Examples of these types of Deal Breakers include exclusivity, complete disclaimers of liability, etc.

With contract benchmarking with AI, you can:

• Avoid unnecessary concessions by knowing what’s actually negotiable. For instance, if our benchmarks show that unlimited liability disclaimers are rare in your sector, your legal team can confidently push back on such demands, saving valuable time and resources.
• Close faster by aligning on contract market standards upfront. When buyers see your terms are the norm and standard, negotiations can go from weeks to days, accelerating revenue recognition and improving sales cycles.
• Bring data-backed contract standards to every discussion. Equip your teams with clear evidence of market norms for clauses like data security responsibilities or governing law, fostering internal alignment and stronger external negotiations.

This isn’t about removing human judgment—it’s about enhancing it with real-world data.

Why It Matters: Avoiding Negotiation Friction with AI Benchmarks

Nobody enjoys negotiating in circles, a process that can lead to lost deals and strained relationships. Without a clear baseline, every clause becomes a debate. That’s where avoiding negotiation friction with AI benchmarks becomes a fundamental shift in how contracts are approached.

When you walk into negotiations backed by benchmarks, you’re no longer guessing. You know how your terms compare to others in your industry and whether they’re likely to raise objections. That kind of visibility:

• Shortens negotiation cycles, freeing up valuable time for your legal and sales teams.
• Reduces legal review costs by minimizing the back-and-forth on standard clauses.
• Builds trust with customers and partners by demonstrating a commitment to fair, market-aligned terms.

How TermScout Does It

At TermScout, we go beyond theory. We’ve built one of the most comprehensive contract data platforms in the industry, analyzing a vast library of previously evaluated contracts across various sectors. Through Certify™, our AI-driven certification platform, we analyze and score contracts with the help of our experienced legal experts.

By tapping into this rich dataset, Certify™ helps you:

• Benchmark your terms against contract market standards with unparalleled accuracy.
• Present fair, trustworthy agreements to counterparties, building immediate confidence.
• Reduce objections before they even happen, accelerating the negotiation process.