Building out a legal team that is efficient and can quickly turnaround legal review for startups is difficult. The speed of review can influence the speed of your sales cycle which helps you grow and scale faster. ChatGPT for legal teams has become a hot topic as of late. Can a legal team rely on AI to be producing and vetting contracts? Whether you like it or not technology has become an invaluable ally for legal teams. But it’s not replacing them entirely. So what’s the best use of ChatGPT for legal teams?
The are two ways that ChatGPT for legal teams can make a difference. The first is for raw contract creation or editing. The second is for contract data management. For small to medium-sized tech startups navigating B2B software sales, there are a lot of pain points in the contract negotiation process and contract storage process that can be time-consuming. Data often becomes trapped in undesired locations. ChatGPT can help with this. Streamlining these legal ops processes will help grow your business faster and scale your ARR. That’s the core advantage of ChatGPT that will focus on today.
- The Challenge of Legal Ops:
- Key Features You Should Use AI Data Extraction For:
- ChatGPT Integration for Enhanced Productivity:
The Challenge of Legal Ops:
Tech startups often have to deal with extended contract negotiations, making sales cycles longer than desired. Managing legal teams amid tight deadlines, ensuring progress visibility for senior leaders, and dealing with post-signing complexities compound the challenge. Communication and data frequently become stuck in lengthy contracts, posing a core issue.
ChatGPT for Legal Teams – Data Extraction:
At the heart of ChatGPT’s usefulness for legal teams is the ability to extract and organize data from long form contracts. This is invaluable and saves people an exponential amount of time having to refer back to old contracts. Contract Sent is designed to present this information in a user-friendly dashboard, offering an at-a-glance overview of ongoing contract negotiations, their current stages, and the responsible parties. This feature alone significantly reduces the ambiguity surrounding the progress of legal negotiations. The ability to track and manage contract metrics further empowers senior leaders by providing them with real-time insights into negotiation trends, success rates, and potential bottlenecks.
Key Features You Should Use AI Data Extraction For:
1. Tracking your liability levels:
- Startups are constantly negotiating contracts for different levels of liability. These need to be tracked to make sure when you are agreeing to large levels of liability your doing this regularly. These should be the accessed on a deal by deal basis.
2. Extraction of Contract Changes:
- With the advanced contract comparison tool, legal professionals can easily track changes between contract versions. This not only expedites the review process but also ensures that all stakeholders are aware of modifications made during negotiations.
3. Termination for Convenience Tracking:
- The tracking of any and all termination for convenience clauses is very important for your startup. Knowing when a customer can termination helps you understand which customers are at risk and how you should deal with this risk.
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4. Clause Extraction for Informed Decision-Making:
- ChatGPT can help a lot to dig into the nuances of contracts. It can be used to identify important clauses. This feature ensures that senior leaders, including founders and heads of sales or finance, can easily review contract redlines, decide on approvals, and maintain control over negotiations.
ChatGPT Integration for Enhanced Productivity:
Now, let’s delve into the other side of the question, what’s the best use of ChatGPT for legal teams?
1. Legal Document Drafting Assistance:
- ChatGPT can assist legal professionals in drafting initial versions of legal documents. By leveraging the power of natural language processing, it can provide suggestions and even generate coherent drafts based on the input provided.
2. Contract Review and Analysis:
- Incorporating ChatGPT into Contract Sent enhances the platform’s capabilities for document review and analysis. The AI can quickly scan through contracts, identifying potential issues, inconsistencies, and offering insights that may be overlooked by human reviewers.
3. Knowledge Base and Training:
- Legal teams can use ChatGPT to create comprehensive knowledge bases and training materials. This can be particularly helpful for onboarding new team members or ensuring consistent understanding of legal processes and best practices.
In the changing landscape of legal tech, ChatGPT emerges as a powerful tool for legal teams that a lot of them love and a lot of them hate. When seamlessly integrated with your legal team, it enhances the turnaround time of your sales motion, providing a holistic solution for tech startups engaged in B2B software sales. With a focus on efficiency, transparency, and productivity, this combined approach ensures that legal teams can navigate the intricacies of contract management with unparalleled ease.
As the legal tech landscape continues to evolve, the synergy between Contract Sent and ChatGPT stands as a testament to the transformative power of innovative solutions in streamlining legal processes for tech startups.