Revolutionizing Contract Intelligence with Generative AI

Contracts govern 70-80% of business transactions, yet many companies treat these agreements as static documents, failing to account for the constant stream of updates and addenda that make them dynamic instruments. This oversight can be costly. Poor contract management can lead to losses of up to 40% of a contract’s value, according to the IACCM. And while contracts touch nearly every part of a business, influencing systems from CRM to transportation management, the process for managing updates – particularly key terms and conditions – remains stubbornly manual. Teams spend countless hours cutting and pasting, increasing the risk of missed updates, skewed financial forecasts, and operational inefficiencies. What if, instead of this manual struggle, we could leverage generative AI to transform contracts from static liabilities into dynamic intelligence sources?

What is Contract Intelligence?

Contract intelligence leverages AI and machine learning to automate the extraction and analysis of key contract data, including terms, obligations, and clauses. This transforms static documents into actionable insights, driving operational efficiency, mitigating risk, and strengthening compliance.

Generative AI is Changing the Game

Generative AI (GenAI) revolutionizes contract intelligence by delivering unmatched accuracy, scalability, and usability. Traditional contract management systems rely on rigid templates or rule-based approaches, often failing to handle the nuanced and variable language in contracts. GenAI excels at interpreting and extracting terms regardless of phrasing, ensuring no critical detail is overlooked.

Unlike older solutions that require constant manual updates to adapt to new contract formats, GenAI learns and evolves, becoming increasingly effective with every document it processes. This adaptability reduces setup overhead, automating workflows from extraction to actionable insights. While traditional tools struggle with large volumes of contracts, GenAI processes them quickly and accurately, making it ideal for scaling contract management.

Another key advantage is GenAI’s contextual awareness. Contracts frequently span multiple documents, including amendments and emails, which can modify or supersede earlier terms. GenAI analyzes these documents holistically, ensuring the extracted terms reflect the most accurate and current agreements. This capability, combined with seamless integration into ERP, CRM, and compliance tools, eliminates manual effort and minimizes errors.

GenAI’s user-friendly design makes it accessible to non-technical users, empowering legal teams, procurement specialists, and business leaders to harness its capabilities without extensive training. By transforming a traditionally cumbersome process into a streamlined and strategic advantage, GenAI is not just improving contract management—it is redefining what’s possible.

Sway AI’s Approach: A Comprehensive Process

Sway AI’s contract intelligence solution follows a streamlined, step-by-step process to deliver accurate and actionable insights:

1. Connect to Document Repositories: The process begins by integrating with the customer’s existing document storage systems, such as a file system or an S3 bucket. This ensures seamless access to all necessary contract files without lengthy or expensive integration into existing systems.
2. Tailored Prompt Creation: Sway’s experienced team creates a chain of prompts designed to extract specific attributes from the documents. These focused prompts ensure that the application accurately identifies the right content.
3. Data Extraction: The tailored prompts are run against the documents to efficiently extract the required terms, clauses, and other key information.
4. Human-in-the-Loop (HITL) Review: Once data is extracted, users review the outputs and provide feedback using intuitive tools like thumbs-up or thumbs-down ratings. They can also override outputs directly to ensure accuracy. This feedback trains the AI system, improving its performance over time.
5. Integration with Systems of Choice: The structured output data is delivered into the customer’s system of choice, such as a cloud data warehouse like Snowflake.
6. Scheduled Updates: Once deployed, the solution runs periodically, such as daily or weekly, to process new or updated contracts. This ensures that the data warehouse always contains the latest and most accurate information.
7. Access for Downstream Applications: As soon as the latest contract data is updated in the warehouse, it becomes readily available for downstream systems, including ERP, CRM, and compliance tools, ensuring up-to-date information is accessible across the organization.

By automating this comprehensive process, Sway AI ensures accuracy and efficiency and frees up valuable resources, allowing teams to focus on strategic, high-value tasks.

The Value Delivered by Contract Intelligence Solutions

A comprehensive contract intelligence solution provides significant value to organizations, making a strong case for adoption:

• Time Savings: Automates repetitive, manual tasks, allowing teams to focus on strategic, high-value work.
• Improved Accuracy: Virtually eliminates errors in extracting and interpreting contract terms, reducing risks and ensuring compliance.
• Financial Benefits: Ensures accurate billing, identifies missed discounts, and optimizes payment terms for better financial outcomes.
• Scalability: Handles large volumes of contracts efficiently, enabling faster processing and decision-making.
• Proactive Risk Management: Ensures contracts are monitored and executed accurately, reducing the likelihood of missed obligations or outdated terms.

With these advantages, contract intelligence solutions powered by GenAI transform contracts from static resources into dynamic, strategic assets for the organization.

The Future of Contract Management

At Sway AI, we’re not just automating contract management; we’re transforming it. By combining the precision of prompt engineering with the power of Generative AI, we empower organizations to unlock the full potential of their contracts, turning them from static documents into dynamic sources of business value. Sway AI’s contract intelligence solution simplifies the management of complex, multi-document agreements, ensuring compliance and informed decision-making. 

Ready to transform your contracts into strategic assets? Request a demo today.