While it is acceptable to start with an NDA template, a forward-thinking legal team will customize the agreement to organization-specific needs. Artificial intelligence can provide concise NDA language while helping to eliminate the many pitfalls that can emerge when reviewing and negotiating the agreements. AI-powered contract negotiation that leverages natural language processing, machine learning, and company-specific data can offer:
Enforced playbook standards |
Ambiguity resolution |
Accelerated negotiations |
Most organizations have a set of controls or a playbook for governing negotiations and acceptable contractual terms. Attorneys may not adhere to it, or they may not have the time to compare it to every clause of a contract. AI can automate the enforcement of playbook directives so that it consistently applies to every arrangement. | No one intends to create an ambiguous contract. Terms and phrases that seem clear to an expert may be utterly mystifying for a layperson. AI contract analysis can review these terms and provisions, locate ambiguity, and provide suggestions to resolve this language. | Negotiations account for a significant portion of contract lifecycle management. AI contract review can highlight target areas for negotiations, allowing the attorney to focus on the highest priority clauses. |
Automated revisions |
Rapid contract turnaround |
Improved resource allocation |
Concise contractual language often requires copious revisions and reviews. AI-enabled technology accelerates the review process by applying terms used in previously successful agreements as a guide to enhance the process. | One of the most significant benefits of AI in contract lifecycle management is its ability to help deals close faster. Only minutes after submitting a contract for review, the legal department receives a completed, redlined agreement which they can use to continue negotiations and close deals. | It could take days for an attorney to thoroughly review a potential NDA. AI removes the burden of painstaking review from these attorneys and allows them to focus on other strategic areas of concern. |
By automating the contract review and negotiation process, leading-edge contract platforms can help corporate legal departments solve the problem of protracted negotiations of NDAs due to prolonged back-and-forth revision requests.
Initially, the legal department simply submits sample agreements to develop a contract database. A leading-edge contract negotiation platform like LexCheck can accomplish this with as few as 24 training samples. Once the AI has been trained, legal staff can email or upload contracts for AI review. Within minutes, a fully-reviewed and marked-up contract will be returned—a contract that consistently follows your department’s best practices and successful past negotiations to reliably protect proprietary information.
While there may be hundreds of suggestions on understanding NDA negotiation, the most efficient and effective option can be found in next-generation implementations of AI in legal tech. AI utilizes a legal department’s in-house information such as completed contracts and playbooks to ensure the creation of more robust and secure NDAs.