In this blog post, we will explore the benefits of using AI technology for contract review, and how it can save time and streamline processes for attorneys.
Why the legal industry is adopting AI
Changing client expectations and expanding responsibilities both represent significant influences on the legal industry’s adoption of AI. Clients expect legal services to be delivered more efficiently and cost-effectively. Additionally, the role of legal professionals has expanded to include other risk areas like cybersecurity, data privacy, and compliance monitoring. As pressure to drastically improve efficiency and productivity increases, AI tools are rapidly being adopted to help solve these problems. Drafting and reviewing contracts can be one of the most substantial and time-consuming parts of a lawyer’s role. According to Thomson Reuters’ 2024 Report on the State of the US Legal Market, AI completed a contract review task with 94% accuracy in just 26 seconds, far outpacing the 85% accuracy of human lawyers who took up to 156 minutes.
The Advantages of AI Contract Review
Using AI for contract review offers numerous advantages for attorneys who are looking for ways to increase efficiency and productivity. By leveraging AI, attorneys can save a significant amount of time and effort in the review process. AI algorithms can quickly analyze and extract important information from contracts, such as key terms, clauses, and obligations. This reduces the need for manual reading and searching, allowing attorneys to focus on higher-level legal analysis and decision-making. Additionally, AI contract review ensures consistency in the review process, minimizing the risk of overlooking important details or inconsistencies.
Another advantage of AI contract review is the ability to handle large volumes of contracts efficiently. Attorneys often deal with numerous contracts on a daily basis, which can be time-consuming to review manually. AI technology can process and analyze contracts at a much faster rate, enabling attorneys to review a higher number of contracts in a shorter amount of time. This not only improves productivity but also helps attorneys meet tight deadlines and deliver faster results to their clients.
Enhancing Accuracy and Consistency
Using AI for contract review significantly enhances the accuracy and consistency of contract analysis. Human reviewers may unintentionally overlook important details or make errors during the review process. AI algorithms, on the other hand, are designed to meticulously analyze contracts and identify potential issues or risks. They can accurately identify specific clauses, keywords, and obligations, systematically ensuring that nothing is missed or misinterpreted. This level of accuracy helps attorneys provide reliable legal advice and can help ensure contracts are thoroughly reviewed and compliant with legal requirements.
Furthermore, AI contract review ensures consistency in contract analysis. Human reviewers may have varying interpretations or approaches to contract review, which can lead to inconsistencies in the analysis. AI algorithms follow predefined rules and criteria, providing a standardized and consistent approach to contract review. This consistency not only improves the quality of the review but also reduces the chances of legal disputes or misunderstandings arising from inconsistent contract analysis.
Streamlining Contract Review Processes
AI contract review streamlines the entire contract review process, making it more efficient and less time-consuming. Traditional manual contract review involves reading through contracts line by line, searching for specific information, and manually extracting key data. This process can be tedious and prone to errors. AI technology automates these tasks, allowing attorneys to quickly extract relevant information from contracts and generate summaries or reports.
Moreover, AI contract review platforms often come equipped with advanced search and filtering capabilities. Attorneys can easily search for specific clauses, terms, or obligations within contracts, saving valuable time and effort. The ability to navigate through contracts efficiently and access relevant information promptly greatly enhances the overall efficiency of the contract review process.
Looking Towards the Future
The future of AI contract review is promising. As technology continues to advance, AI algorithms will become even more sophisticated and capable of handling complex legal tasks. Machine learning and natural language processing techniques will enable AI systems to better understand and interpret legal language, leading to more accurate and efficient contract review.
AI contract review platforms, like Screens, will continue to incorporate additional features and functionalities to enhance the user experience. Integration with other legal tools and systems, such as Microsoft Word. The future of AI contract review holds immense potential for transforming the legal industry, making contract review faster, more accurate, and more efficient than ever before. 77% of lawyers believe GenAI tools will help increase their efficiency and productivity. While these opinions are often tempered with concerns about ethics, the overall sentiment is optimistic that AI is poised to fundamentally reshape the legal industry by increasing efficiency, meeting evolving clients needs, and enabling lawyers to take on expanded responsibilities.
