NLP for contract analysis: How AI can supercharge contract search

Searching for contracts can be arduous, but we now have AI-powered Natural Language Search (NLS) to lighten the load. In this blog, we will explore the effective utilization of Artificial Intelligence (AI)’s Natural Language Search (NLS) for locating contracts. By employing AI-driven technology, you can effortlessly navigate through vast repositories of legal documents — making contract search much faster and less painful.

Understanding contract full-text search capabilities

According to EY, 90% of contracting professionals say they face challenges trying to locate contracts. NLS can help eliminate this problem.

The concept of NLS is centered around utilizing AI technology to facilitate seamless navigation through extensive information repositories. With this approach, users can effortlessly access and retrieve relevant data, such as key clauses and provisions, by inputting specific keywords or phrases into the search function.

Leading enterprise tools utilize AI technology to break down human language into fragments, aiding in extracting relevant information from contracts. Natural Language Processing (NLP) algorithms analyze the linguistic structure, syntax, and semantics of the text — all of which are important to overcome challenges in processing difficulties surrounding poor contract writing.

Through a comprehensive analysis, accurate and pertinent results are generated, enabling individuals to locate the information they need efficiently and ensuring the process of searching for information becomes streamlined and intuitive. This saves time and reduces the risk of missing critical information.

NLP for contracts — revolutionizing contract management

Boost contract search efficiency with AI and NLP. Here are some ways contracts can now be analyzed efficiently and accurately, simplifying the process of retrieving vital information.

Extraction of key clauses

One significant aspect of the NLP contract analysis process is extracting contract elements like key clauses, payment terms, confidentiality agreements, and termination clauses. All of this can be achieved by utilizing AI models. By automatically identifying and extracting these critical clauses, businesses can swiftly review and comprehend the fundamental elements of a contract.

Named Entity Recognition (NER)

NER is a technique used in NLP to identify and classify named entities in text. These entities can include names of people, organizations, locations, dates, and more. The process involves analyzing the structure and context of the text to extract meaningful information, enabling CLM systems to enhance contract indexing, utilize quick search and retrieval, and facilitate accurate contract analytics.

Contract classification

Contract classification allows for the categorization of contracts based on their content and structure. By analyzing textual patterns and semantic features, NLP enables the identification and organization of contracts into relevant categories without relying on manual intervention or human effort.

Language translation

Do you need conversion of contracts from one language to another? The process of translating languages is made possible through the utilization of advanced algorithms and linguistic models. NLP’s language translation capabilities enable the seamless communication and comprehension of content across diverse linguistic boundaries.

Managing compliance challenges 

What’s more, compliance challenges can be effectively managed by utilizing natural language search technology. With natural language processing algorithms, relevant information can be extracted and analyzed from vast amounts of data, enabling a comprehensive understanding of regulatory requirements.

Through this implementation, valuable insights can be gained, facilitating the development of robust compliance strategies. Compliance challenges are efficiently tackled by employing natural language search technology, ensuring adherence to legal obligations, and mitigating potential risks.

Identifying NLP applications for contract searches

The utilization of NLP applications has led to significant advancements in the field of contract management. Document categorization and search features have been greatly improved, resulting in faster and more accurate results that free up contract managers from tedious, repetitive tasks. Valuable insights into the transformative impact of NLP in contract management can be found within the right AI Platform, provided you know what to look for: 

• Comprehension of questions: How vast is the machine learning comprehension of how you phrase your queries? The NLP system should understand various ways of phrasing the same question or request, handling solutions, different sentence structures, and context so users can query the system naturally without needing to conform to a strict format.
• Clarity and usefulness of responses: How are your search queries answered, and is it easy to understand and process the answers? An ideal solution should provide accurate answers while presenting them in a way that’s easy for users to interpret and use — whether through summaries, highlights, or structured data.
• Flexibility and integration: Is there more than one way to access the NLS function? Users should be able to interact with the system through various methods, such as voice commands, text input, or integration with other tools. Multiple access points enhance usability and accommodate all user preferences and workflows.

Considerations for an ideal NLP solution

There are some things to remember about an ideal NLP solution, especially beyond the main feature of contract summarization. By considering these aspects, you can determine the best NLP applications that enhance contract searches while also offering a comprehensive suite of features to streamline management processes.

Integration with existing systems 

Integration can be a challenge when implementing new technology. You’ll need an NLP application that seamlessly works with your current contract management systems and databases, so you don’t need to make extensive changes to your existing workflows. For instance, Agiloft’s Integration Hub can connect your systems and allow data to flow freely — enhancing the NLP’s usability and effectiveness.

Scalability

You need an NLP solution to handle growing data as your organization evolves, maintaining performance and accuracy over time. A strong implementation partner will set you up for long-term success and help you manage complex transitions smoothly and efficiently.

Customization options

Look for solutions that let you tailor the NLP functionalities to your specific organizational needs, such as a training model with your unique contract language. You can collaborate with your NLP provider to ensure your workflows and training data are built specifically with your organization in mind. That way, you can improve your processes without changing how you do business.

User support and documentation

Choose an NLP solution with comprehensive support and documentation, such as Agiloft. Our implementation team has a 100% Customer Satisfaction (CSAT) rating. We can help you understand your system and troubleshoot issues as they arise, making adoption smoother.

Data security and compliance

Ensure that the NLP solution will protect your data and the confidentiality of sensitive contract information. That way, you can comply with standards and safeguard your private data.

Case studies of AI and NLP in contract management

Numerous organizations have successfully harnessed AI and NLP technologies to revolutionize their contract management processes. Success stories from real Agiloft clients include:

• Klein Tools reduced approval times from 2-3 days to mere minutes.
• Young’s Holdings modernized its contract management — employees report spending less than five minutes doing searches.
• Health Catalyst automated Contract Lifecycle Management (CLM), breaking sales bottlenecks and accelerating revenue flow.
• Balluff drove legal efficiency and improved global contract transparency through enhanced data insights. 
• Bissell increased operational transparency and efficiency, reducing turnaround times to as low as two days.
• Boys Town unified processes under a secure CLM solution, building a custom auditing application within the framework.

These examples show the differences AI and NLP can make in your contract management — particularly in saving time, enhancing efficiency, and allowing your organization to focus on core missions.

The future of AI and NLP in contract management

NLP is constantly evolving, and businesses can continue to learn from it. NLP provides invaluable insights into better payment terms, pricing structures, or ideal service offerings through the analysis of patterns, trends, and user behavior within contracts. These analytical capabilities allow businesses to identify areas for improvement, optimize contract terms, and enhance negotiation strategies. The continuous improvement facilitated by NLP ensures that contract management processes remain agile and effective.

Enhance your contract management with Agiloft’s data-first solutions

Gone are the days of tirelessly searching for contracts. With AI and NLS, you can streamline your contract management and reduce retrieval times. Discover how Agiloft’s innovative solutions can transform your contract search experience. Talk to us today to unlock the potential of AI for your organization!