The process of managing contracts entails the creation, negotiation, review, and execution of contracts. Traditional contracting methods are cumbersome and time-consuming, resulting in delays, inefficiencies, and higher contract management expenses.
Contract management has been transformed by AI thanks to its ability to automate procedures, increase accuracy, improve search performance, and produce insightful data.
One is likely to have heard about AI’s new tech in trend, OpenAI’s ChatGPT which comes under the Large Language Model. Contract Management can be enhanced through ChatGPT in areas of reviewing, summarizing, contract generation and compliance, and so on. From basic automation to advanced data analytics, ChatGPT has changed how businesses manage contracts to improve process effectiveness.
In this blog, let’s see what makes AI’s ChatGPT can be of use in enhancing contract management.
How does ChatGPT help in Contract Management?
ChatGPT helps professionals by efficient contract production and summarizing case notes. It reduces the amount of time spent on research and typing up documents. To save time, they can spend it better through meeting with clients directly for other productive tasks.
In contracting, ChatGPT can be used to:
- Enter a clause and request revision suggestions
- Reply to suggestions for revisions
- Explain your revisions.
- Change provisions or sections of an agreement and seek advice on the optimal phrasing to meet your goals.
- Summarize a long paragraph that requires manual parsing to comprehend the point and its significance.
- Recognize what is typical in specific contract types and ask for justifications and evidence.
- Summarize the regulations to identify what is important and explain why a party would wish to leave it out or include it in the contract.
- Get information on how to find data sources or how to find them to support your arguments.
- Recognize the counterarguments and ask for responses on your behalf.
- Determine quickly whether a specific statute or rule applies to our business by researching, finding its definition, and noting it.
- Proofread for spelling and grammar mistakes.
Benefits of integrating ChatGPT with Contract Management
Organizations can gain advantages by integrating ChatGPT with contract management systems, streamlining and improving many facets of contract management. Here are a few significant benefits:
- Reduced expenses
ChatGPT can generate contract provisions, conditions, and templates to help users during the creation of contracts. The time and effort required to compose contracts can be decreased by using required phrases and ensuring that all relevant components are present. Organizations can cut back on the time and resources needed for contract administration, resulting in cost savings by automating repetitive operations like contract preparation, review, and search.
- Decreases human errors
Contracts can be initially reviewed by ChatGPT to find empty sections or conflicting terms. ChatGPT can assist in ensuring that communications with other parties during the contract negotiation process are precise and error-free. ChatGPT makes ensuring that provisions and contract language are consistent across all contracts. By doing this, the chances of mistakes brought on by unclear or contradictory language are decreased.
- Promotes easier search
Advanced searches are made possible by integrating ChatGPT with contract management systems. Users can more easily access information by asking ChatGPT inquiries like, “Look for contracts with the word December 2023” which can swiftly find the relevant documents. Insights like essential dates, duties, or issues can be drawn from contracts managed through ChatGPT. This can help firms make wise judgments, spot patterns, and successfully handle contractual commitments.
With several benefits that can be incurred through using ChatGPT with contract management, a few have been discussed above. Several advantages of using ChatGPT on the whole in contracting are yet to be fully explored. Firms can stay updated and use them to the maximum benefit of their contracting needs.
Every firm has different needs and according to their requirements, organizations should analyze and choose the one which will suit them best. Know the major differences between the top most Generative AIs below.
Differences between the Top Generative AIs
| Features | ChatGPT | Bard |
| Establisher | OpenAI | |
| Model | GPT-3.5 | Pathways Language Model 2 (PaLM 2) |
| Search Engine | No | No |
| Content generation | Generates fluent and creative text | Generates concise and relevant text, can answer questions and summarize text |
| API availability | OpenAI API | No official API |
| Licensing | Open-source | Paid platform |
| Cost | Service is free. There is a paid subscription plan of 20$/month(ChatGPT Plus) | Free |
| Information source | Data feed | Internet |
Firms can choose the chatbot based on their service requirements and preferences.
Conclusion
In conclusion, using ChatGPT has many advantages under contracting. Both developing and developed firms can use ChatGPT for Contract management which could yield the best results that are more effective, user-friendly, and in line with current business demands.