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How Organizations Leverage Automation to Speed Deal Velocity By DAN BRODERICK
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losing deals is a critical part of any business, whether making new technology purchases, signing a lease or establishing a joint venture. Typically, closing contracts requires many hours of legal review — an inefficient, manual process that leaves both parties open to risk and lost profits. In fact, poor contracting approaches can waste hours of time and cost businesses up to nine percent of annual revenue. In some cases, lengthy involvement of the legal department can even result in lost opportunities.
One answer to improving deal velocity (the speed with which a company negotiates and signs a contract to close a transaction) is using AI to more quickly provide the solutions that customers and businesses are looking for. With the effects of Covid continuing to impact sales and transactions, every organization is looking for ways to close more deals faster and with less risk. Automated tools accomplish these goals by eliminating excess negotiation and repetitive markups, and allowing the legal team to streamline the process and be more consistent.
AI allows you to review and mark up contracts instantaneously, far faster than any member of the legal department could. AI also becomes “smarter” the more it
AI allows you to review and mark up contracts instantaneously. is used, through user-enabled machine learning feedback loops. As the tool reviews more of the organization’s deals, the machine learning gains insights into how an organization reviews and marks up contracts to leverage in future contract reviews, while also improving the speed at which it reviews previously unseen contracts. Global 1000 companies and other organizations of all sizes are increasingly turning to these types of automated tools to speed up deal velocity, minimize risk, and make the business a more attractive partner to other organizations. By leveraging AI tools as part of contract review, general counsel will quickly see several benefits: • Improve the bottom line. The costs of poor contracting processes quickly add up. After all, the faster a deal can be closed, the faster the revenue from the agreement can
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