AI-Powered Business Operations Contract Negotiation
When conducting business operations contract negotiations, legal departments build on past successes. Contract negotiation powered by artificial intelligence (AI) automates this process and ensures contract terms strictly follow a company’s negotiation guidelines. As a company’s contract guidelines, or AI Digital Playbook, are updated, negotiations become more fine-tuned. Likewise, because AI “understands” where boilerplate language will not suffice, it can offer suggestions when clauses need to be revised or adapted to unique partnerships.
With the help of AI, businesses can streamline the process of reviewing and negotiating contracts that affect business operations. By eliminating human error and ensuring contract review and negotiation follows company standards, AI provides a fast and transparent process that makes corporate legal departments more efficient and effective.
How AI Streamlines Business Operations Contract Negotiation
Artificial intelligence addresses several sticking points in business contract negotiation, whether you’re working with MSAs, NDAs, or partnership information agreements.
Master Service Agreements - MSAs clarify payment terms, intellectual property ownership, dispute resolution, termination clauses, and warranties. The AI can review these agreements, compare them with previously negotiated contracts, note any omissions, and redline areas of potential liability. Natural language processing (NLP) technology enables the AI to suggest inline insertions that adhere to company playbook standards and incorporate best practices.
Non-Disclosure Agreements - NDA negotiation can seem like a balancing act. On the one hand, legal departments want to cover all the confidentiality and privacy concerns of a business interaction. On the other hand, however, they are wary of including an overabundance of provisions that could invite risk or slow down the negotiations, ultimately affecting the underlying transaction. AI technology can automate much of this balancing act by making concise revisions, marking up areas that may be omitted, and indicating where language could be clarified or otherwise improved.
Proprietary Information Agreements - PIAs can complement or replace the NDA, covering the scope of intellectual property protection that includes ownership, duties, exceptions, disposal, governing law, waivers, termination, and more. Issues arise when companies rely too much on boilerplate language without considering the context. Ambiguous terms, overly broad provisions, unclear obligations, or uncertain security expectations can all derail a PIA. AI can help legal departments delineate “high risk” aspects of the contract or situations where terms may vary from partner to partner.
LexCheck’s AI-Powered Contract Review and Negotiation for Business Operations
LexCheck is a leading AI-powered contract review and negotiation platform that streamlines business operations contract negotiation from start to finish. The process is simple, a company’s legal department uploads as few as a dozen contracts to the platform. If the company has an internal playbook or style guide, that is uploaded to the platform to increase performance and accuracy.
Once the initial onboarding is complete, intake for new contracts is as simple as emailing an agreement for the AI to review. In some cases, a fully redlined and marked-up version of the agreement can be returning within minutes. Since the AI “learns” as contracts are reviewed and guidelines are updated, recommendations are made based on evolving successful negotiations. Attorneys and legal staff can review suggestions and immediately see where to focus their negotiation efforts to ensure the most favorable agreements.
LexCheck’s AI-powered contract review and negotiation platform marks a breakthrough in legal technology. Learn how LexCheck can innovate your legal department by contacting us at email@example.com. To experience the technology for yourself, request a demo.
Gary Sangha | Founder & CEO
Gary Sangha is the Founder and CEO LexCheck. He's a serial entrepreneur and an academic. Gary previously founded Intelligize, a legal technology company that was acquired by LexisNexis. He's affiliated with the University of Pennsylvania and Stanford University and started his career as an attorney at Shearman & Sterling and White & Case.