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Ironclad yesterday unveiled a new version of its contract platform embedded with an AI layer in an effort to improve business flow throughout the lifecycle of a contract.
Organizations can create contracts 60% faster by automating the contract creation process, according to Jason Boehmig, the company’s CEO and co-founder. They will also have the ability to “slice and dice” all operational data in previously executed contracts, he said.
“They have a whole mountain of contracts that existed before they worked with us,” which are static PDF files, Boehmig told VentureBeat. Ironclad Smart Import uses optical character recognition (OCR) to convert PDF files to DOCX when editing documents. The software scans, indexes, tags and stores contract data at scale. The new platform is designed to make full-text contracts searchable, automate data mining and extract keywords – such as renewal dates.
This way, a company’s customer support team can reach out to a customer to see if they’re going to renew a contract, Boehmig explained. “If you miss it, you lose revenue. “Now, [contracts] … are fully living, breathing documents because of the AI analysis used to tag them and make them searchable.”
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The AI functionality also makes it possible to recognize who needs to approve a contract and automatically route it to them, he said.
The new world of contract creation
Also yesterday, Ironclad launched in beta Ironclad Playbooks, which use AI-powered clause recognition to allow customers to review and negotiate contracts. Playbooks are designed to automatically analyze contracts and flag areas that require a thorough review and provide suggestions on how to negotiate based on legally approved guidelines, the company said.
Contract creation in the “old world looks like a human with a checklist reading contracts line by line and checking off boxes and making sure every sentence matches the checklist,” Cai GoGwilt, co-founder and CTO of Ironclad, told VentureBeat. That person would have to negotiate using a redlining process and go back and forth over email or print things out and scan them in, he added. “The new world is accelerating that” by using AI to “intelligently negotiate and review contracts at scale.”
The software scans each part of the contract and matches it with the organization’s preconfigured playbooks, tracking whether each line of the playbook is compliant and suggesting language that can be swapped in, GoGwilt said. “It’s contextual and empowers the user to make better decisions faster.”
“When you’re dealing with 20- to 30-page supplier contracts, the manual review process takes an enormous amount of time — but it’s critical work,” Charles Hurr, assistant general counsel at L’Oréal, said in a statement. “Ironclad AI automatically reviews these contracts, flags language and clauses that don’t work for us, and suggests L’Oréal-approved provisions to replace.”
This cuts the review process from hours to minutes, Hurr said, improving team efficiency, freeing up time for people to focus on more impactful work.
“Our goal is to keep 95% of our contracts legally out of bounds, and Ironclad’s AI-powered workflows, permission checks and analytics are getting us there,” Catherine Choe, Everlaw’s chief legal officer, said in a statement. “Ironclad has helped our team facilitate growth by dramatically speeding up the contract upload and review process while maintaining compliance and reducing risk.”
AI and analytics
Ironclad said the new AI tools come on the heels of the release of Ironclad Insights, a contract analytics and visualization platform. Because Ironclad automatically captures both metadata and process data, Insights is designed to allow users to create visualizations of critical operational and business data to make faster decisions, identify bottlenecks, and present findings in a digestible way to key stakeholders.
Pricing for the new platform is based on the number of users, Ironclad said.
Earlier this year, Ironclad announced that it had raised $150 million in Series E funding from Franklin Templeton, a global investment management firm, bringing its total funding to $333 million.
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