Machine learning, the foundation of artificial intelligence, plays a crucial role in contract management software. Contract management is seeing a revolution as AI software is learning to scan, create, sort, and search complex contracts more effectively. AI software can extract and clarify the content of contracts. Contracts and the fine print they entail can quickly grow to the size of a War and Peace novel. When people had to create, manage, and search these contracts, it was an exhaustive and time-consuming process. Machine learning, at its most basic definition, refers to a computer’s ability to use algorithms to learn new functions.
Machine learning allows every stage of the lifecycle of a contract to become more and more automated. In contract creation, machine learning can promote the learning of successful language and clauses. In the storage and management of contracts, machine learning increases the effectiveness of tagging documents to ensure they are easily accessed. Machine learning also enables computer algorithms to learn more advanced search features, as it learns from the materials it scans. This ability to learn means
it becomes more customized to each client’s needs over time.
Post Contract Analysis
Analyzing the end result of a contract is perhaps one of the essential roles in contract management. Examining the effect of a contract to improve future outcomes used to be tedious human work. Machine learning can extrapolate data sets to determine the potential for better results. Machine learning can extract insights to drive a more efficient contract creation process.
Machine Learning vs. Artificial Intelligence
In understanding how AI and Machine Learning are distinctly separate, but entwined processes, think of two parts of the same process. Artificial intelligence is the concept of a machine being able to do things that would be considered smart. AI has a broad definition. Machine learning is the narrower concept of being able to give machines access to data and let it learn for itself. The faster machine learning grows, the more significant leaps artificial intelligence can take. Artificial intelligence has been around for some time. Though we have seen rapid growth in the AI sector, people
tend to see it is dated. Think of applications like Siri, Alexa, and Google Home. Machine learning has a shiny new appearance. Although it is the next evolutionary step in AI, it is marketed as almost a separate entity.
The enormous leap in machine learning came with the development of neural networks. A neural network is a computer system designed to categorize information the same way a human brain does. Neural networks, for instance, allow a machine to scan, sort, and classify documents while learning what they mean. In AI-driven contract management software, machine learning allows the algorithm to track results. Tracking results from contracts can will enable the software to eventually be able to identify bad clauses, missed deadlines, and other unwanted results from a contract.
The machine can do this at infinitely faster speeds than the human brain. The speed frees up human beings to focus on less tedious tasks that require human interaction or input. Machine learning does not threaten human jobs. Instead, this freedom allows them more time to focus on the creative aspects of their work. AI and machine learning are concepts that are here to stay. Marketing of machine learning and AI is now on efficiency and streamlining processes. Companies that develop machine learning-driven AI want people to see the benefits of time saved doing tedious tasks. Give those jobs to the machines, allowing the human workforce to focus on the things that need a human touch.