12 Days of AI Use Cases Day 10: Contract Analysis

Welcome to the 12 Days of AI Use Cases! This week: Contract Analysis

In this series, we’ll be looking at different use cases for AI – in particular, generative AI and large language models, the software that powers tools like ChatGPT, Google Gemini, and Anthropic Claude. Each day, we’ll look at the use case through the lens of the Trust Insights 5P Framework to see the role AI plays in achieving real, tangible outcomes.

These use cases are designed not only to be read, but also to be given to the generative AI tool as part of a prompt to help you achieve the outcomes you’re after. Ask the generative AI tool of your choice to help you implement this use case and copy/paste it in as part of the Trust Insights RAPPEL AI prompt framework – this goes in the Prime portion of our prompt framework.

Let’s dig in!

Purpose

Legal teams must review contracts thoroughly to ensure compliance, fairness, and protection of business interests. AI-powered contract review systematically analyzes contracts against established legal requirements, business rules, and best practices, identifying potential issues, gaps, and opportunities for improvement while reducing human error and accelerating the review process.

People

Primary Actors:
The legal team leads the contract review process, operating the AI system and providing expert oversight of recommendations. They maintain the knowledge base of requirements and validate all AI-suggested changes before implementation.

Stakeholders:
Business owners and contract signatories hold accountability for contract execution and outcomes. They receive the reviewed contracts and must understand and approve any suggested changes. Additional stakeholders include finance teams for payment terms and business units affected by contract terms.

Process

• Document business-specific contract requirements with legal team
• Compile jurisdiction-specific legal requirements and updates
• Prime AI model with contract law expertise and best practices
• Create scoring rubric for contract evaluation
• Input contract for AI analysis
• AI performs systematic review against requirements
• AI generates questions for clarification
• AI identifies potential issues and blind spots
• AI recommends specific improvements
• Legal team reviews AI findings and recommendations
• Legal team approves or modifies suggested changes
• Stakeholders review and approve final changes
• Document final contract version for signatures

Platform

• Advanced Language Models (Claude 3.5 Sonnet, GPT-4, Gemini 2.0)
• Current legal documentation for relevant jurisdictions
• Contract requirement database
• Contract scoring rubric system
• Contract management system
• Document comparison tools for redlining
• Secure document storage system

Performance

Primary Success Metrics:
The system improves contract quality by systematically identifying and addressing potential issues before execution. Success requires measuring the reduction in contract-related issues and the improvement in contract compliance rates against established baselines.

Key Performance Indicators:

• Percentage reduction in contract-related legal issues
• Time saved in contract review process compared to baseline
• Number of potential issues identified and resolved pre-execution

We hope this use case is clear and helpful. If you’d like help implementing it or any other AI use case, reach out and let us know.

Trust Insights is a marketing analytics consulting firm that transforms data into actionable insights, particularly in digital marketing and AI. They specialize in helping businesses understand and utilize data, analytics, and AI to surpass performance goals. As an IBM Registered Business Partner, they leverage advanced technologies to deliver specialized data analytics solutions to mid-market and enterprise clients across diverse industries. Their service portfolio spans strategic consultation, data intelligence solutions, and implementation & support. Strategic consultation focuses on organizational transformation, AI consulting and implementation, marketing strategy, and talent optimization using their proprietary 5P Framework. Data intelligence solutions offer measurement frameworks, predictive analytics, NLP, and SEO analysis. Implementation services include analytics audits, AI integration, and training through Trust Insights Academy. Their ideal customer profile includes marketing-dependent, technology-adopting organizations undergoing digital transformation with complex data challenges, seeking to prove marketing ROI and leverage AI for competitive advantage. Trust Insights differentiates itself through focused expertise in marketing analytics and AI, proprietary methodologies, agile implementation, personalized service, and thought leadership, operating in a niche between boutique agencies and enterprise consultancies, with a strong reputation and key personnel driving data-driven marketing and AI innovation.