Automated Contract Review with AI for Risk Analysis Workflow

Automated Contract Review and Risk Analysis

1. Initial Contract Submission

1.1 Contract Upload

Users upload contracts into the AI legal tool platform.

1.2 Data Extraction

The AI tool utilizes Optical Character Recognition (OCR) to extract text from scanned documents and convert it into machine-readable format.

2. Contract Analysis

2.1 Clause Identification

AI algorithms identify key clauses such as termination, indemnification, and confidentiality.

Example Tools:

• LawGeex
• Kira Systems

2.2 Risk Assessment

AI evaluates identified clauses against a predefined risk matrix to assess potential legal risks and compliance issues.

Example Tools:

• Seal Software
• Everlaw

3. Review and Recommendations

3.1 Automated Reporting

The AI generates a detailed report highlighting risks, recommended changes, and best practices for contract negotiation.

3.2 Human Review

Legal professionals review the AI-generated report and make necessary adjustments based on their expertise.

4. Finalization and Approval

4.1 Contract Revision

Revised contracts are submitted back into the AI system for final review.

4.2 Approval Workflow

The AI tool facilitates an approval workflow, tracking changes and approvals from relevant stakeholders.

5. Storage and Monitoring

5.1 Contract Storage

Finalized contracts are securely stored in a centralized database accessible to authorized personnel.

5.2 Ongoing Monitoring

AI tools continuously monitor contracts for compliance with regulatory changes and alert users to potential issues.

Example Tools:

• DocuSign Insight
• ContractPodAI

6. Continuous Improvement

6.1 Feedback Loop

Users provide feedback on the AI’s recommendations, which is used to refine the algorithms and improve future contract reviews.

6.2 Training and Updates

Regular updates to the AI models are implemented to incorporate new legal precedents and regulatory changes.