SEATTLE, WA / ACCESSWIRE / July 5, 2019 / Enterprise clients are essentially very large companies with usually at least 1,000 employees or more. The requirements of these large firms are far more complicated, demanding and far-reaching than those of small businesses. When it comes to technology, they're often at the cutting edge, not always because they want to but because they have to in order to keep up with their industry.
It's no different when it comes to contract management, artificial intelligence (AI) and Software as a Service (SaaS). SaaS is basically a software distribution model that involves a third-party provider hosting applications and making them available on the Internet. It's one of three main categories of cloud computing. As opposed to on-premise software, SaaS allows data to be accessed from any device with an Internet connection and web browser.
AI-first SaaS companies use data and machine learning algorithms to build their product experiences. The SaaS industry has been evolving fast over the years, with the most noticeable change in SaaS development being the concept of ensuring that the customer satisfaction and the user experience both involve simpler tasks with a reduction in manual labor. Add AI to that when it comes to contract management and you have a revolution in technology.
Enforcing Compliance in SaaS Environments
As the use of the SaaS delivery model continues to grow, enterprise clients who are migrating to cloud solutions are finding out how important it is to closely examine the contract terms of their SaaS vendors.
Before signing a SaaS vendor contract, enterprises must first clarify the needs and objectives that they intend for that SaaS to help them meet. Then they can search for a vendor who offers specific contract terms that will meet those needs and objectives. Or, they could attempt to negotiate the terms they want with another vendor.
But even after an enterprise has secured the best contract terms possible, the challenge of SaaS implementation is far from being over. In order to achieve the full potential of SaaS, enterprises must have a contract management system in place for their vendor contracts. That's where AI for contract management comes in.
The Cost of Failing to Manage Contracts
Contracts with SaaS vendors must consistently be monitored for performance and security compliance. Often times, enterprises fail to live up to contract terms related to performance, which can result in poor customer service and inefficient processes. On top of that, security lapses can leave a large company vulnerable. An enterprise contract management software system will flag non-compliance right away so the enterprise can address the issue directly with the vendor.
Contract Management for Maximum Benefit
The paper-based method of enterprise contract management is incredibly inefficient, especially in very large companies with hundreds of contracts going on simultaneously. The chance is high for human error, lost documents, varying "silos" of contract data, the difficulty of compiling and analyzing data, the cost of storing all that paper, and the cost of labor that is being used for redundant paperwork.
The automated processes offered by contract management software does a far better job of keeping enterprises on top of the level of service they are getting from SaaS vendors at a lower long-term cost.
The management of AI SaaS contracts is imperative for any enterprise to embrace. If not, the chance is high that the company could leave money on the table, and even face disastrous compliance penalties.
Understanding Expectations
Knowing what IA technology does and how it will deliver the results you need is of critical importance.
There are two stages of AI in contract management:
Prescriptive analytics that guide enterprises in decision-making, i.e., side-by-side comparisons of the clauses of a drafted contract against those of previous contracts. AI software can go between the two documents and determine discrepancies in seconds.
Predictive analytics: The AI system applies specific contract management rules in order to make decisions. This is called "machine learning" and can actually make intelligent decisions as to whether to include a particular clause in a contract, for example.
As it stands now, most enterprise companies are offering services in prescriptive analytics only. The concept of machine learning is still associated with robots reading your contracts, and it's still far off for most. It doesn't have to be.
Right now, only large organizations have the large budgets to implement AI in contract management, and even then, they are starting off with small samples of contracts or limited ranges of contract management processes.
Is Your Organization Ready for AI Contracting?
Before your enterprise organization can seriously start to think about AI contracting, you need to have the basics down, including contract visibility, data centralization and a library of standardized language.
In order to realize the cost savings of AI SaaS contracting, you need to be comfortable with storing data in the cloud. Having this versatile mindset is important before moving your contract management to AI.
Contact Evisort
Evisort caters to enterprise clients who want to move their contract management systems to AI SaaS. Contact us or request a demo online.
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SOURCE: Press Works
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https://www.accesswire.com/551008/Enterprise-Clients-Move-Contract-Management-to-AI-SAAS
