Ironclad’s new contracting platform incorporates artificial intelligence to improve business workflows

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Ironclad yesterday unveiled a new version of its contract platform integrated with a layer of AI in an effort to improve business workflows throughout a contract’s lifecycle.

Organizations can create contracts 60% faster by automating the contract creation process, according to Jason Boehmig, the company’s CEO and co-founder. They will also have the ability to “slice and dice” all operational data on previously executed contracts, he said.

“They have a whole mountain of contracts that existed before they worked with us” that are static PDFs, Boehmig told VentureBeat. Ironclad Smart Import uses optical character recognition (OCR) to convert PDF files to DOCX during document processing. The software scans, indexes, tags and stores contract data at scale. The new platform is designed to make contracts full-text searchable, automate data extraction and extract key terms — such as renewal dates.

That way, a company’s customer support team can contact a customer to see if they’re going to renew a contract, Boehmig explained. “If you lose that, you lose revenue. “Now, [contracts] … they are fully live documents because of the AI ​​analysis that went into tagging them and making them searchable.”

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The AI ​​functionality also makes it possible to identify who needs to approve a contract and automatically route it to them, he said.

The new world of contract creation

Also yesterday, Ironclad released Ironclad Playbooks in beta, which uses AI-powered clause detection so customers can review and negotiate contracts. Playbooks is designed to automatically analyze contracts and highlight areas that require scrutiny and provide suggestions on how to negotiate based on legally approved guidelines, the company said.

Contract creation in the “old world is like a person with a checklist who reads the contracts line by line and checks the boxes and makes sure they comply with the checklist,” Cai GoGwilt, co-founder and CTO of Ironclad, told VentureBeat. That person would have to negotiate using a red-line process and go back and forth via email or write things down and scan them, he added. “The new world is accelerating this” by using artificial intelligence to “negotiate intelligently and renegotiate contracts at scale.”

The software scans each part of the contract and matches it against the organization’s preset playbooks, and monitors whether each line in the playbook is compliant and suggests language that can be replaced, GoGwilt said. “It’s contextual and enables the user to make better decisions faster.”

“When you’re dealing with 20- to 30-page vendor contracts, the manual review process takes an enormous amount of time – but it’s critical work,” Charles Hurr, L’Oréal’s deputy general counsel, said in a statement. “Ironclad AI automatically reviews these contracts, highlights language and clauses that don’t work for us, and suggests L’Oréal-approved provisions for exchange.”

This cuts the review process from hours to minutes, Hurr said, and improves his team’s efficiency, freeing up people’s time to focus on higher-impact tasks.

“Our goal is to keep 95% of our contracts legal, and Ironclad’s AI-powered workflows, license checks and analytics are getting us there,” said Catherine Choe, director of legal at Everlaw. “Ironclad has helped our team facilitate development by dramatically speeding up the contract shipping and review process while maintaining compliance and mitigating risk.”

AI and analytics

Ironclad said the new AI tools come on the heels of the launch of Ironclad Insights, a contract analytics and visualization platform. Because Ironclad automatically captures both metadata and process data, Insights is designed to enable users to create visualizations of critical operational and business data to make faster decisions, identify bottlenecks and present findings in a digestible way for key stakeholders.

Pricing for the new platform is based on the number of users, Ironclad said.
Earlier this year, Ironclad announced that it had raised $150 million in Series E funding from Franklin Templeton, a global investment management firm, bringing its total funding to $333 million.

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