In today’s complex legal landscape, administrative burden can often hamper efficiency and divert resources and attention away from strategic tasks. This is particularly true in the area of contract management, where the complexities of onboarding, renewals, and updates can overwhelm legal teams.
Let’s look at the challenges of manual contract management systems and how AI-driven solutions, like those offered by Felix Solutions, can eliminate them and enhance the process to drive operational excellence and reduce administrative burden.
Challenges in Manual Contract Management
Legal departments are flooded with contracts from various stakeholders every day, each with unique requirements and frequent updates. It is no surprise that this tedious, time-consuming work is prone to human error in the absence of a proper contract lifecycle management system. 90% of contracting professionals feel like finding a specific document is a challenge.
According to market research, 68 percent of contract professionals search for completed contracts at least once a week. A survey found that most contract professionals spend between 1 and 6 hours tracking obligations in a contract, while 1 in 4 spend more than a full workday doing the same. This is time that could be spent in more productive ways by administrative staff.
The survey further shows that the average time of locating a contract is about 45 minutes, while the time spent on finding the relevant section or language is 84 minutes. In total, that’s over two hours wasted just locating a contract, without even accounting for the time taken to analyze or apply the information. And if this is just the time taken for 1 contact, imagine the time cost involved in managing over 6,000 contracts that an average company generates in a year!
Another study revealed that reviewing and processing a low-complexity agreement can cost as much as $6,900!
With manual contracting processes leading to missed deadlines, revenue delays, and costly disputes, it is no wonder that it puts a strain on the administrative staff. Looking at the statistics above, the urgency of adopting AI-driven solutions is clearer than ever.
Contract Management Revolution: AI Takes Over
AI contract management systems play a pivotal role in alleviating administrative burdens through a multifaceted approach by automating repetitive tasks such as contract drafting, reviewing, and renewal, minimizing administrative delay, and accelerating time-to-signature. AI ensures administrators stay organized and proactive without extensive manual oversight or strain by streamlining document management and compliance processes.
Felix Solution steps in as a game-changer, focusing on the challenges of contract ingestion and digitization.
Felix’s Contract Ingestion solutions, powered by AI and machine learning, enhance existing contract management processes by automating the process, reducing the risk of errors, improving contract management, and providing a comprehensive view of contract terms.
By helping legal service providers, digitized pages within seconds, the tool frees up valuable resources for more critical tasks.
In the same vein, Felix’s Document Digitization Solution enables organizations to efficiently capture data from various documents, facilitating a seamless integration into core systems for enhanced operational efficiency.
By letting cutting-edge AI technology take care of the heavy lifting, manual teams can focus on client interactions, strategic tasks, and maintaining business continuity without interruptions.
Reducing Administrative Burden With AI Contract Management
Let’s look at some ways AI-powered contract management offers a comprehensive approach to reducing administrative burden, enabling administrators to focus on strategic initiatives and higher-value tasks.
- Automated Processes: By automating repetitive tasks such as contract drafting, reviewing, and renewal, AI minimizes the need for manual intervention and frees up administrative resources for more strategic activities.
- Reduced Errors & Increased Compliance: By leveraging machine learning algorithms, AI can detect errors or discrepancies in contracts more effectively than humans, minimizing the risk of costly mistakes. AI can identify potential risks within contracts by analyzing language, terms, and clauses, helping organizations mitigate legal and financial liabilities. AI systems can ensure that contracts adhere to relevant laws, regulations, and internal policies, reducing the likelihood of non-compliance and associated penalties.
- Time and Cost Saving: Research found that AI-powered contract management tools result inlegal departments spending 75% less time reviewing each contract. With AI, organizations can turn 3 hours of contract review into 45 minutes, saving up valuable time and reducing administrative strain. Felix Solutions boasts an impressive track record, with clients experiencing up to a 250% increase in processing speed.
- Improved Efficiency & Accuracy: AI automation also brings about a transformative enhancement in efficiency and accuracy. By streamlining tasks, reducing the time and effort required for these processes, and minimizing the potential for human error, AI-driven insights allow organizations to continually refine their contract management strategies, optimizing efficiency and accuracy over time. All in all, when operational efficiency is enhanced, it allows human teams to focus on strategic initiatives and improve business continuity.
Conclusion
Poor management reduces contract value by 40 percent. The adoption of AI-powered solutions, such as Felix Solutions’ Contract Ingestion and Document Digitization offerings, is essential for legal organizations seeking to reduce administrative burden and enhance operational efficiency.
To witness the transformative power of AI in legal contract management and unlock new opportunities for administrative efficiency and revenue growth, partner with Felix Solutions today. Schedule a demo and experience how our innovative solutions can streamline your operations and drive measurable results.
Your journey to enhanced efficiency starts here!