Automated Contract Review Workflow with AI Integration

Automated Contract Review and Due Diligence

1. Initiation Phase

1.1. Document Collection

Gather all relevant contracts and legal documents for review. This can include NDAs, service agreements, and partnership contracts.

1.2. Tool Selection

Choose appropriate AI research tools for contract analysis. Recommended tools include:

• Kira Systems: Utilizes machine learning to identify and extract key clauses from contracts.
• Luminance: Employs AI to analyze and review large volumes of documents quickly.
• LawGeex: Compares contracts against predefined legal standards and identifies potential risks.

2. Review Phase

2.1. AI-Driven Analysis

Utilize AI tools to conduct an initial review of the contracts. The tools will:

• Identify standard clauses and deviations.
• Highlight any unusual terms or conditions.
• Provide risk assessments based on historical data.

2.2. Human Oversight

Legal professionals review AI outputs to ensure accuracy and contextual understanding. This step is crucial for:

• Validating AI findings.
• Addressing nuances that AI may overlook.

3. Due Diligence Phase

3.1. Risk Assessment

Conduct a comprehensive risk assessment using AI-driven analytics. Tools such as:

• Everlaw: Provides insights into litigation risks based on contract terms.
• ROSS Intelligence: Offers legal research capabilities to assess case law related to contract terms.

3.2. Compliance Verification

Ensure contracts comply with relevant laws and regulations using AI compliance tools. Examples include:

• Compliance.ai: Monitors regulatory changes and assesses their impact on contracts.
• LexisNexis: Offers compliance tools that integrate legal research with contract analysis.

4. Finalization Phase

4.1. Reporting

Generate a detailed report summarizing findings from the review and due diligence processes. The report should include:

• Identified risks and compliance issues.
• Recommendations for contract modifications.

4.2. Stakeholder Review

Present findings to relevant stakeholders for discussion and decision-making. Utilize AI tools to facilitate:

• Visualizations of risk assessments.
• Comparative analysis of contract terms.

5. Implementation Phase

5.1. Contract Modification

Based on stakeholder feedback, modify contracts as necessary. AI tools can assist by:

• Suggesting alternative clauses based on best practices.
• Ensuring changes do not introduce new risks.

5.2. Final Approval

Obtain final approval from all parties involved before executing the contract. Ensure that:

• All modifications are documented.
• Final contracts are stored in a secure, accessible location.

6. Post-Implementation Review

6.1. Performance Monitoring

Utilize AI tools to monitor contract performance over time. This includes:

• Tracking compliance with terms.
• Assessing outcomes against expectations.

6.2. Continuous Improvement

Gather feedback on the automated contract review process and identify areas for improvement. Implement changes to:

• Enhance the efficiency of the workflow.
• Refine the AI tools used for future reviews.