Key Takeaways
- AI-enabled NDA automation = massive time savings. Demandbase reduced turnaround time for their NDA review process from 2-3 days to just 1-2 hours, with legal team review time typically under 5 minutes. The process focused on flagging problematic clauses like non-solicitation, indemnification, and audit rights, enabling the legal team to focus on more substantive work.
- AI implementation requires smart risk management. It’s crucial to strike the right balance between innovation and risk. When implementing AI in your contract review process, start with NDAs because they’re lower-risk documents compared to revenue-generating contracts.
- Data security is non-negotiable. A critical consideration when implementing AI tools is data security. Customer data should never be used to train commercial AI models. Additionally, look for assurance that data, including outputs in AI services, remains separate and secure when looking at AI tools
- Training is essential for accurate results. The Demandbase team created hundreds of test NDAs using ChatGPT, intentionally including both compliant and non-compliant clauses to train their AI system. This approach helped the AI improve at identifying problematic clauses and continue and learn and correct mistakes.
Ironclad is not a law firm, and this post does not constitute or contain legal advice. To evaluate the accuracy, sufficiency, or reliability of the ideas and guidance reflected here, or the applicability of these materials to your business, you should consult with a licensed attorney. Use of and access to any of the resources contained within Ironclad’s site do not create an attorney-client relationship between the user and Ironclad.
