How AI Contract Property Detection Drives Efficiency

Prioritizing projects is the nature of legal operations—you don’t have time to do it all. However, the right tools can speed up tasks like uploading and reviewing contracts to help you get through tedious projects.

Here’s how contract property detection simplifies document review and analysis so you can finally get to the projects at the bottom of your list.

What is AI contract property detection?

AI contract property detection automatically identifies and tags details in a contract, like party names, contract values, and terms of liability. Instead of reviewing agreements line-by-line and manually adding information to a repository, contact property detection does the busy work for you.

At a high level, here’s how it happens:

Step 1: You upload a contract to your contract lifecycle management (CLM) tool.

Step 2: The tool uses AI to comb through the document to identify and tag contract properties.

Step 3: The contracts and the contract property details are then stored in a searchable repository and made accessible to analytics tools like Ironclad Insights.

Teams can use contract property detection to easily find contract metadata living in legacy contracts, review agreements on third-party paper, build out analytics dashboards, and update contract management processes.

Here’s what contract property detection can identify

Ironclad document importing feature, Ironclad Smart Import, uses AI contract property detection to detect 194 properties in up to 2,000 uploaded contracts simultaneously—right out of the box. You can also create custom clauses for the AI to identify.

The default contract properties exist in two categories: contract fields and clauses.

Contract fields are dates, numbers, and strings like:

• Agreement date
• Agreement term
• Venue
• Contract value
• Auto-renewal
• Payment frequency
• Opt out length

Clauses are sections, phrases, paragraphs, or segments like:

• Adjustments
• Cancellation
• Data privacy
• Breaches
• Assignees
• Arbitration
• Copyrights
• Non-exclusivity

The benefits of automatic contract property detection

If you’re used to doing every legal task by hand, using new technology might initially feel unusual. However, there’s a lot to gain by using AI contract property detection if you’re willing to try:

• Save time: Automatic property detection saves minutes per contract by automatically reviewing and logging details, quickly adding to significant time savings.
• Reduce errors: After your tenth contract in a row, your eyes glaze over. Contract property detection uses AI to find and extract the information correctly every time.
• Standardize tagging: Ironclad AI translates properties across different formats into consistent information in your repository, which makes it easier to find and reference.
• Analyze agreements: Since Ironclad AI tags every detail of your new and legacy contracts, you use Ironclad Insights to pull the data stored in your contracts through to track trends, spot deal cycle inefficiencies, and much more.
• Search past contracts: Optical character recognition (OCR) turns uploaded documents fully text searchable.
• Maintain compliance: Keep meticulous records of past agreements in a secure repository without manual effort.
• Improve collaboration: Quickly find details and answer contract questions across teams.
• Focus on high-impact tasks: You can focus on strategic work instead of busy tasks.

AI-driven contract property detection is one part of your workflow

Ironclad’s Smart Import uses AI to identify and tag contract property details, but that’s just one part of an AI-assisted workflow.

Let’s go through a scenario that uses AI to understand past contracts and improve future agreements. Sales agreements are a vital—but cumbersome—part of your company’s process that’s taking up more legal time than they should.

First, you group your past sales agreements and set the record type to keep everything organized. AI contract property detection adds the details to a searchable repository so it’s easier to reference agreements if the sales team asks about them in the future.

Smart Import creates a visual summary of the uploads, and you see that half of the past agreements are under a particular contract value threshold, making them candidates for a click-to-accept agreement to help sales teams close more deals.

Next, you take what you learn about your past agreements and establish an AI Playbook that dictates your preferred clauses and permissions. This lets sales teams initiate contracts and only bring in legal help for complex negotiations.

But not every contract originates internally, so you also use AI Assist™ to automatically redline contracts based on your established playbooks. Now, you can quickly review and accept suggested redlines based on your preferred details and quickly send the contract back to the counterparty.

Ironclad’s comprehensive suite of AI contract analysis and management tools helps teams complete workflows like this and review contracts up to 60% faster.

For more, watch the power of the Ironclad Repository–and its contract property search configurations–in action.