AI-powered Contract Summary Feature

Manually sifting through pages of contracts to understand its core elements is a time-consuming and error-prone process often requiring significant Lawyer involvement. But what if you could instantly grasp the key points of any contract? Thankfully, the rise of Artificial Intelligence (AI) is bringing a revolutionary solution to contract management. The AI-powered contract summary feature uses the power of Artificial Intelligence (AI) to automatically generate concise summaries of complex contracts, fundamentally changing how businesses handle agreements.

But, let us first understand how this works. Here’s a story:

Sarah, a young and ambitious marketing manager at a bustling tech start-up, stared at the email with a growing sense of dread. It contained the Non-Disclosure Agreement (NDA) for their upcoming partnership with a major social media platform which needed review by tomorrow. The Agreement was dense, filled with clauses that seemed to twist and turn like a legal maze. Hours ticked by as Sarah wrestled with the contract. Every sentence felt like a riddle, leaving her unsure about key details like the duration of the agreement and the limitations on information sharing. Just as frustration peaked she remembered her colleague talking about the new AI-powered contract summary feature. She searched for the AI contract summary feature within her company's contract management system. After a few clicks, she found it. She uploaded the NDA. Moments later, a clear and concise summary appeared on the screen. It highlighted key points like the NDA's duration (one year), the scope of confidential information, and permitted information sharing for marketing purposes. The legalese was replaced with plain English, making the terms crystal clear. The previously confusing clauses now fit neatly into the framework provided by the summary. She decided to run it by the legal team just to be safe. This is exactly why we invested in innovation," she thought, realizing the AI feature would benefit not just her but the entire team.

What is AI-powered contract summary feature?

AI-powered contract summary is a feature that uses machine learning to automatically generate a concise and easy to understand version of a contract, highlighting the key points like clauses and extracting vital information like obligations, deadlines, terminations rights etc.

How does AI Summarize Your Contracts?

• Natural Language Processing (NLP): The AI uses NLP to understand the nuances of legal language within the contract. It can identify important clauses, dates, parties involved, and other critical details.
• Machine Learning (ML): The AI is constantly learning and improving. By analysing vast amounts of contract data, it can recognize patterns and extract crucial information with ever-increasing accuracy.
• Information Extraction: Once the AI understands the contract, it extracts relevant information and organizes it into a clear and concise format. This might include details like contract type, duration, termination clauses, payment terms and risk allocations.
• Summary Generation: The AI then generates a summary that highlights the most important aspects of the contract. This summary can be presented in a user-friendly format making it easy for users to grasp the key points without wading through the entire document.

Data Extracted for a Clearer Picture

So, what specific data does the AI summarize?

Here are some key areas it focuses on:

• Parties Involved: The AI identifies all parties involved in the agreement, including their roles and responsibilities.
• Key Dates: Important dates like commencement, termination and deadlines are pinpointed for easy reference.
• Financial Terms: Financial obligations, compensation details and any potential penalties are highlighted.
• Obligations and Deliverables: The AI summarizes the specific actions each party is required to take under the contract.
• Termination Clauses: Termination conditions and associated consequences are clearly outlined.
• Confidentiality and Intellectual Property: The AI identifies clauses related to the protection of confidential information and intellectual property rights.
• Governing Law and Dispute Resolution: The legal jurisdiction that governs the contract and the process for resolving disputes are summarized.

By extracting and presenting this crucial data, the AI contract summarization feature offers a clear and concise overview of the contract, allowing all stakeholders to grasp its core elements quickly.

Beyond Just Summarizing:

AI contract summarization goes beyond just providing a basic overview. It further:

• Identifies Potential Risks: The AI can highlight clauses that might contain hidden risks, allowing for proactive mitigation strategies.
• Flags Unusual Terms: Deviations from standard contract language can be flagged, prompting a closer look.

Benefits of AI-powered contract summaries:

• By automating the initial analysis and summarization process, AI frees up valuable time for legal professionals to focus on complex issues and negotiations.
• AI can identify inconsistencies and potential risks within the contract that might be missed during a manual review.
• With summaries readily available, stakeholders can quickly understand the essence of a contract and make informed decisions faster.
• AI summaries create a common ground for discussions between legal and non-legal teams involved in the contract review process.