Discover Contracts AI
Learning Objectives
After completing this unit, you’ll be able to:
- Explain the need for generative AI in contract management.
- Describe the features of Contracts AI.
- Explain how Contracts AI helps with contract management.
Before You Start
Before you start this module, make sure you complete the following content. The work you do here builds on the concepts and work you do in that content.
Also, consider completing the following recommended content.
Overcome Challenges with Contracts AI
You've probably heard the buzz about AI—it's the most talked-about technology these days, right? But beyond the hype, how can AI transform the way you manage contracts? Imagine having a smart assistant that makes managing contracts as easy as handling your daily emails. That’s what Einstein generative AI can do for you!
Einstein generative AI is revolutionizing the way businesses handle contracts, clauses, and documents. Traditional contract management processes are often labor-intensive, time-consuming, and prone to human error. Generative AI is a game-changer for contract management as it can automate and enhance various aspects of the contract management lifecycle. Here are the challenges of traditional contract management, which generative AI helps you overcome.
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Time-consuming processes: Traditional contract management is labor-intensive, and often requires lengthy drafting and review periods that can delay business operations.
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Error-prone output: Human error remains a significant risk in manual contract management, and can lead to costly legal disputes and renegotiations.
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Compliance risks: Manually ensuring that every contract complies with the latest laws and regulations is complex and resource-intensive, and increases the risk of non-compliance.
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Inefficient negotiations: Without data-driven insights, negotiations can be slower and less effective.
Contracts AI, a Salesforce Contracts feature, uses generative AI to address these challenges and make contract management a lot easier. How? Time to find out.
Key Features of Contracts AI
Contracts AI has powerful features that enhance the efficiency, accuracy, and compliance of contract processes.
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Automated clause generation: Automates clause drafting and standardizes contract language across documents. This ensures consistency in language across documents, improves legal compliance, enhances overall accuracy, and reduces the risk of costly legal disputes.
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Advanced clause library management: Provides an easily navigable clause library for quick retrieval and reuse of standardized clauses, speeding up the contract creation process. This saves time and promotes best practices and consistency, ensuring all contracts meet company and industry standards.
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Enhanced legacy contract digitization: Streamlines and automates the conversion of traditional paper-based contracts into digital formats. This significantly reduces the time and effort required to identify and extract key data, such as contract fields and clauses. It also minimizes the risk of errors associated with manual data entry.
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Instant clause drafting in Microsoft 365: Integrates directly with Microsoft 365 to enable instant drafting and addition of clauses to document templates and contract documents. This speeds up the drafting process, enables swift creation and modification of multiple clauses, enhances productivity, and simplifies the contract authoring and review process.
How Does Contracts AI Help?
In the Salesforce Contracts Foundations module, you explored the benefits and capabilities of Salesforce Contracts. You also learned how digital contract management simplifies and expedites the sales process. So how does Contracts AI help?
It takes a lot of time and effort to draft clauses for legal agreements and extract contract details and clauses from complex documents. Contracts AI makes these tasks simpler and better. Here’s how.
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Draft legally valid contracts: Generate clauses based on legal precedents, industry best practices, and company policies. This ensures that your contracts are not only legally sound but also aligned with the latest standards and regulations.
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Enhance clause relevance and accuracy: Customize the clause language to your specific needs by providing additional generation parameters. And tailor the clauses to fit the unique requirements of each contract. This helps you enhance the relevance and accuracy of every contract.
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Use clauses from existing contracts: Extract clauses from unstructured legal language and populate your clause library. This feature enables you to reuse and adapt clauses from previous contracts, saving time and ensuring consistency across your legal documents.
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Streamline legacy contracts: Extract data from and convert legacy contracts to digital formats. This speeds up contract extraction and digitization, and makes contract creation more efficient.
Consider the example of Cloud Kicks, a company that makes stylish and comfortable sneakers designed and personalized for customers. Behind every pair of custom sneakers is a series of supplier contracts, partnership agreements, and customer data, which need careful management.
Contracts AI enables Cloud Kicks to focus more on what it does best—designing personalized sneakers—while the technology takes care of the complexities of contract management. Next, explore how Cloud Kicks uses Contracts AI to create clauses.