AI Co-Pilot for Smarter Contract Management

Executive Summary

In a business world where precision and compliance are key to success, managing complex processes like contract management becomes a significant challenge. A global corporation specializing in complex vendor management across diverse regions, struggling with oversight of numerous contracts while complying with data sovereignty laws, sought an innovative solution.

Factspan introduced an AI-driven Contract Management Co-Pilot, powered by Large Language Models (LLMs), to automate contract analysis and entity recognition. This advanced solution improved data accuracy, reduced manual effort, and ensured compliance with regional regulations, ultimately enhancing decision making and boosting operational efficiency. The novel approach significantly overhauled the client’s contract management process, automating data extraction and providing real-time insights, which enabled the client to maintain a competitive edge in their industry.

About the Client

The client is a prominent multinational enterprise engaged in complex vendor and contract management across various regions, requiring strict adherence to regional data sovereignty laws and robust access controls. Their focus on maintaining data integrity and operational efficiency drives their need for advanced contract management solutions.

Business Challenge

The organization faced significant challenges in managing and summarizing a large volume of contracts spread across different geographies and entities. The traditional process required extensive manual effort to extract and analyze key data points, resulting in delays and a high risk of non-compliance with local regulations. This inefficiency led to slow decision-making, increased operational costs, and potential legal risks. The challenge was to develop a sophisticated, automated contract management solution that could efficiently handle large datasets, ensure compliance, and provide accurate insights to enhance operational efficiency.

Our Solution

Factspan developed a Contract Management Co-Pilot using advanced Generative AI and LLM technologies to automate the contract management process. The solution comprised the following key components:

• Contract Entity Extractor: Automated extraction of critical data entities from contract documents,
  which are then organized and stored in a document database for easy access and retrieval.
• AI-Driven Summarization: Utilized LLMs to generate concise summaries of contracts, reducing the
  time and effort needed for manual review and analysis.
• Data Sovereignty Compliance: Ensured all contract data processing and storage adhered to regional
  data residency laws, incorporating robust authentication and access control measures to maintain
  security.
• Scalable Architecture: The solution’s modular design allows for easy scaling across additional entities
  and geographies, supporting the client’s growth and evolving regulatory requirements.

By implementing this solution, the client achieved significant improvements in their contract management processes, leading to better compliance, enhanced data accuracy, and reduced operational costs.

Business Impact

• Automation: Anticipated to cut manual effort by 60%
• Scalability: Forecasted to boost contract processing capacity by 40%
• Data Accuracy: Expected to enhance data accuracy in contract summaries by 35%
• Compliance: Set to ensure 100% compliance with regional data sovereignty law 40%