About the client
A leading US based IT solutions company specializes in managed IT services, cloud solutions, cybersecurity, and strategic IT consulting. Their solutions are crafted with care and are designed with customer satisfaction as the goal. They offer tailored solutions that enhance efficiency and security through digital transformation initiatives for healthcare, medical and education industry.
Business Challenges
The client had to deal with frequent contractual agreements with its vendors and customers. It spent a considerable portion of its time on manually analyzing contracts. Often the contract clauses did not align with the customers’ standards, demanding meticulous and repetitive adjustments.
Redlining those contracts and standardizing them was a huge challenge as it involved parties from various backgrounds that resulted in cultural barriers. Legal jargons used in the contracts led to complex interpretation and disagreements within the parties, leading to complications in the contract negotiation process.
Search and retrieval of contracts was highly time-consuming affecting client’s decision making and resource management. They did not have the right mix of tools and technologies to perform contract redlining, affecting both the quality of services and their relations with the vendors and customers.
Business complexity due to the challenges
- The length and complexity of contract clauses made the review process difficult.
- Back-and-forth negotiations between multiple parties resulted in a delay in execution.
- Inefficient internal review processes hampered the redlining process.
- Limitation of legal resources and the volume of workload affected turnaround times.
Cognida.ai Solution
Digitization of contract documents like ICAs, COIs, MSAs using Zuno.Lens led to extraction of 45 key information points across these documents. It significantly improved the efficiency and speed of the contract redlining process. Cognida.ai was able to fine-tune its AI models based on the contract language understandable by the customer.
Zunō.Lens could assist the end-users in redlining of contract documents against a set of ‘compliance-rules’ templates, making the documents legally compliant. The redlining suggestions provided by Zunō.Lens enhanced the contract review process by 100%.
The client teams could now effectively assess and review the contract docs through collaboration and external sharing. Contract documents are seamlessly integrated with the client’s mailbox and repositories for instant access. Zunō.Lens could streamline their approval workflows for validation and approval of contracts. This solution could also be extended for non-contractual documents like ‘certificate of insurance’.
Why the Cognida.ai approach works
- The discrepancy detection feature quickly helped the legal teams to overlook all critical terms and inconsistencies across the contracts.
- The review teams could enhance their processes as the risk assessment feature helped them flag all risky terms in the contracts.
- The legal teams could easily keep track of contract versions using the version tracking feature. They could improve the accuracy and consistency of their contract documents with Zuno.Lens’ redline suggestions like edits and revisions.
- Intelligent contract management using Zunō.Lens enabled stakeholders and partners to communicate effectively with regular updates and notifications on contract terms and clauses. The client made huge cost savings by reducing the risks of costly errors and disputes.
Business Impact
- 70% time saved by legal teams on analysis of contracts
- 5 min time taken to analyze each contract and only 60s digitization time per contract
- 80% accuracy in evaluating 36 compliance rules and key value extraction across 800 contracts in four document types.
