NTT DATA expedites Contract Lifecycle Management with NLP
Contract Lifecycle Management (CLM) establishes oversight from contract initiation through award, compliance, and renewal. Most enterprises implement CLM to improve the quality and administration of contracts. More competitive businesses use CLM to create cost savings and efficiency. Generative AI (Gen AI) technologies magnify those savings and efficiencies.
At the enterprise level, CLM accounts for a sizable portion of enterprise OpEx. A single contract can demand $6,900 to process; more complex contracts can require as much as $49,000.*1 The average enterprise manages 20,000 to 40,000 contracts.*2 This equates to hundreds of millions of dollars. The average enterprise wastes 9% of revenue on CLM.*3
With technological and servicing advantages resulting from Gen AI, it is estimated that as much as 40% of legal tasks involved in the CLM process can be driven by Gen AI.*4 As applied to CLM, Gen AI uses artificial intelligence to automate and streamline stages in the contract process. Gen AI can help author documents, analyze terms, and extract data.
Using Natural Language Processing (NLP), Gen AI can help author contracts and clauses based on preapproved templates and indicated criteria. Gen AI can manage reviews and approvals. It can extract and summarize data in response to queries. Given the volume of contractual documents in an enterprise, Gen AI also can help assess the totality of information, including among segments. The cognitive load on accuracy levels needed is quite high. Beyond single-document tasks, Gen AI also can be used to intelligently automate aggregate processes, such as information collection from sets of already completed contracts.
NTT DATA Gen AI intelligently automates lifecycle processes to expedite CLM with accuracy. NTT DATA uses NLP in CLM for efficient end-to-end workflows and in accordance with predefined rules. We help our clients save time and money by avoiding manual origination and error. Imagine automated review – whether in original form, collaborative stage, or in amendment modifications – against a set of standards, policies, and requirements. Issues are automatically flagged and can be corrected, saving expensive legal staff for higher-level tasks.
Our services and solutions allow our clients to stay ahead of potential risks and remain aware of obligations and opportunities. Whether it is a matter of assessing the number of parties to a contract or library of contracts, the terms of effectiveness, scopes of financial items, etc., Gen AI creates process and efficiency where it did not exist prior.
NTT DATA clients also can easily be reminded of negotiation and renewal timelines to stay abreast of key milestones. Where sessions with business partners and customers may require legal analysis, Gen AI can provide staff with historical perspective, current trends, and comparative precedents to ensure the enterprise is apprised of optimal terms and conditions.
Gen AI delivers efficiency, accuracy, and risk management to NTT DATA clients. For CLM, businesses can streamline contract management, boost productivity, and use intelligent analysis when making contract-related decisions.
- *1 WCC, 2018.
- *2 PWC, 2022.
- *3 WCC, 2018.
- *4 Deloitte, 2022.
Learn more about
Priya Joseph, Head of AI ML Practice, Senior Director, NTT DATA