18 months have passed since the launch of ChatGPT, revolutionising how we get things done. A great example of this comes from our contract work, with nearly 6 in 10 businesses already using, or planning to use, AI in contracts.
But what is driving this rapid change? And how is AI being utilised? We take a deep dive into those very questions here.
We’ll cover:
How many businesses are using AI in contracts?
What is driving this change?
How is AI being used in contracts?
What role could AI play going forward?
How many businesses are using AI in contracts?
First and foremost, let’s talk about where we’re getting these numbers from. Here, at Oneflow, we surveyed hundreds of people at companies in 6 European countries and in the US to gather data on AI in contracts. You can read the full report here.
It’s from this survey that we got the data we’re using here. Amongst our respondents, 34.6% stated that they’re already using AI in their contracts, while another 22.7% stated that they plan to adopt it. That makes for a total of 57.3% – or almost 6 in every 10 businesses we surveyed.
But this is only scratching the surface. According to research by EY and the Harvard Law Center, 50% of business development leaders state that friction points in their contract process have caused them to lose out on business.
Given the current economic climate, and the layoffs we’re seeing in some parts of the world, these sorts of problems aren’t sustainable in the short-term, let alone going forward. There also might well be lots of startups and scale-ups, particularly in countries with prominent tech scenes, like Ireland, Poland and Ukraine, that haven’t been surveyed, but are still adopting AI in contracts.
Read also: Oneflow announces a significant expansion of its strategy with a new AI-powered platform
What is driving this change?
In short: smoother, easier signing once everything’s in place. Friction in business workflows causes issues. It can lead to delays in signing, deadlines being missed, and, crucially, even impact your bottom line if a prospect chooses to sign with a competitor. But AI in contracts can also help you save money internally.
Say, for example, you need to revamp your sales contracts. Perhaps you’ve undergone a merger or acquisition, a local law or regulation has changed, or your product or payment terms have. Normally, you’d have to go through your legal team. Your in-house or contracted lawyer would then have to spend hours – or even days – pouring through each and every element of the contract.
That takes precious time when you need the contracts ready-to-go immediately. It’s also an extra strain and additional pressure on your legal team. Using AI in contracts removes a lot of this pressure. It can help identify any issues in your clauses anywhere in the contract, what the issue is, and how to go about fixing it.
Businesses across the world are continuing to steer their way through stormy economic waters. In some parts of the world, dry land isn’t yet in sight. Climate change, conflicts in different parts of the world, and a general economic slowdown are driving this. So, even though there’s an initial investment in AI in contracts, the ROI makes it more than worthwhile.
How is AI being used in contracts?
We’ve established that there is a strong movement towards AI in contracts, but how exactly is it being utilised? Here are three examples;
Creation: Going forward, more and more contracts are likely to be made using features like AI Assist. This means that many different types of contracts can be created in dozens of different languages with just a few clicks. This saves cost surrounding underwriting and translation services.
Archive Search: Even if you use an online archive solution, it can still be difficult to find a specific contract. This is particularly true if it’s been tagged or named incorrectly. Now, instead of having to spend hours searching through potentially thousands of contracts, AI in contracts can help you. Certain AI tools can help you tag, file and catalogue your contracts. As such, you can find your contracts in just a few clicks. It’s never been easier to get control over your contracts.
Reviewing: Mistakes happen. Things slip through the net. But, depending on the size of the slip, it could affect your bottom line. In the worst case, it can even render a contract invalid. Fortunately, AI in contracts can help spot these mistakes before they become problems. In fact, some tools can even make suggestions on how to make the language in your contracts that little bit clearer, to avoid misunderstandings.
In short, say goodbye to human error. Say hello to a frictionless contract experience – from creation to renewal. It’s little wonder that almost 6-in-10 businesses are already using AI in contracts.
Read also: AI contract management: What you need to know
What role could AI play going forward?
How long is a piece of string? We’re only just scratching the surface of what AI could potentially do – and that is very true of AI in contracts. Perhaps, the best way to find out is to dive straight into the change. Fortunately, Oneflow is here to help you. Not only do we offer a complete contract tool sold at a low cost (making for a great ROI), we are also continually launching new AI features, and updating existing ones.
In fact, we’ve just launched AI Review, which can review each of your contracts, and AI Review Plus, that can do so in bulk. If you want to get in one on the action with our new AI features, click here to join the wait list. If you want to find out more about Oneflow and how it all works, click here.
