When you’re building a startup the key to growth is usually doing more with as little as humanly possible. Time and money are precious during your sales cycle when you’re trying to get your tool in people’s hands. AI tools for contract creation have emerged to speed up the annoying part of your sales process—contract negotiations. There are a lot of new tools out there that will create or edit contracts for you. As you’re growing and seeking faster, cheaper solutions, we want to highlight the benefits and potential red flags of using AI for contract creation.
1. Swift Negotiations:
For startups in the competitive B2B software space, especially selling to enterprises, closing deals quickly is crucial for growth. Extended contract negotiations can slow ARR growth and lengthen sales cycles, threatening growth opportunities. AI expedites contract negotiation by drafting customer-specific contracts, starting closer to the desired contract for both parties.
This is a great use case for using AI for contract creation. But is has a lot of downside too. The more custom contracts become, the harder it is to track differences over time. A software as a service company derives a core advantage from its ability to replicate and scale processes. Customization becomes a hidden enemy for companies looking to grow rapidly. Although using AI for contract creation reduces manual drafting time it also increases complexity exponentially as the company grows.
2. Efficient Team Management:
Effectively managing legal teams can be a formidable task, particularly when looming deadlines add to the pressure. Using AI for contract creation will decrease the amount of time that your team is spending on each and every contract negotiation. This coupled with a tool like Contract Sent’s task management system, ensure legal teams prioritize tasks efficiently. Automating routine processes allows legal professionals to focus on high-value aspects of their work and high value contracts, amplifying overall productivity and ensuring the timely completion of critical tasks.
3. Transparent Progress Overview:
A common challenge for senior leaders lies in the lack of insight into ongoing negotiation progress and the changes that have been made to contracts. Using AI to extract data from contracts and store this in a dashboard provides real-time overviews, shedding light on current stages and the individuals responsible for each phase. This transparency empowers leaders to make informed decisions, allocate resources effectively, and maintain control over negotiations, eliminating the common frustration of being in the dark about critical contract statuses.
The downside of this is ensuring that you have a strong contract versioning process in place. As the negotiation process is going back and forth it’s common for the versions of the contract to change. Using AI to extract data only works if you’re extracting it from the right contract!
Contract Metrics Tracking for Decision-Making:
Strategic decision-making necessitates a deep understanding of contract metrics. Keeping track of your overall contract metrics helps you shape your negotiation strategy. If you’re using AI for contract creation this is extremely important. Without keeping an eye on your overall metrics it’s very easy to have your contracts start to stray from the original context and to start giving up too much in your ongoing contract negotiations. Contract Sent addresses this need with a dedicated metrics tracking dashboard, enabling leaders to gain insights into negotiation trends, success rates, and potential bottlenecks. This data-driven approach refines contract strategies, optimizes workflows, and enhances efficiency, positioning Contract Sent as an indispensable tool for informed decision-making in the dynamic world of tech startups.
Contract Management Made for Startups
Set Tasks, Negotiate Faster
Seamless Access and Version Control:
Post-negotiation challenges often revolve around contract accessibility and management. Contract Sent mitigates these issues with a user-friendly Kanban board designed for efficient version control. The advanced contract comparison tool ensures systematic tracking of changes, minimizing the risk of errors and discrepancies. This streamlined post-signing process ensures that contracts are easily accessible and well-managed, contributing to a hassle-free workflow.
AI for Contract Creation Clause Writing for Risk Mitigation:
Identifying potential risks within contracts is extremely important for tech startups. Using AI for contract creation is something that needs to be very carefully monitored to ensure that the contracts being created are not creating clauses that will cause risk rather than mitigate it. The AI you’re using needs to be trained specifically for your businesses contract risks. Keep a look out for contract management software like Contract Sent with capabilities like clause tracking, to allow legal teams to analyze and highlight areas needing attention. This proactive approach ensures contracts align with legal guidelines, reducing the likelihood of disputes and legal complications down the line.
Enhanced Collaboration and User-Friendly Interface
Beyond the advanced features of AI for contract creation you need to make sure you’re putting in the stop gap measures to ensure your team is using these new tools safely. Contract Sent promotes enhanced collaboration while having these stop gap measures in place. Using AI-powered contract creation just doesn’t allow for the proper review of documents that are the cornerstone for your business. The user-friendly interface ensures that while you’re building a AI contract generation machine you still have control over what’s being created. Even individuals without extensive legal expertise can navigate effortlessly, promoting widespread adoption within the organization.
The benefits of using AI for contract creation, especially for tech startups, resonate strongly with the strategy of fast growth. But a lot of tools don’t effectively address the challenges that can be created by letting this creation go unchecked. Contract Sent empowers startups to navigate the back and forth of contract management with efficiency and it looks to de-risk your contracts.