LegalSifter

Artificial intelligence for your contract pain

"Nothing is more simple than greatness; indeed, to be simple is to be great."

 

- Ralph Waldo Emerson

ContractSifter Service Case Study

legalsifter

Data Sifted to Populate New Software System

967

22,241

94

15

Total Contracts Sifted

Data Fields Cleaned

Duplicate Contracts Cut

Project Duration (Days)

LegalSifter Delivers Full Solution for Extracting and Uploading Relevant Data from Active and Legacy Contracts into New Contract Management Software

 

After purchasing a new contract management software solution, Digital First Media, a media company with 66M+ readers, needed to quickly organize data from 1,061 active and legacy contracts so they could use their new system effectively. Given the volume of documents and the capacity constraints of their team to review and extract the information required in a reasonable timeframe, Digital First Media engaged LegalSifter’s ContractSifter Service to deliver a solution that would provide accurate, clean and organized data.

 

LegalSifter’s team worked with Digital First Media to identify 23 fields of data such as parties, addresses, renewal dates, termination for convenience clauses, and governing law, among others. With the help of one of its partners, Wint & Kidd, LegalSifter delivered the project in 15 business days, supplying all requested information. LegalSifter also de-duplicated 94 contracts in the sample.

"Everything should be as simple as it can be,

but not simpler."

 

- Albert Einstein

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Uses

legalsifter

Contract

Management

Contract

Negotiation

Due

Diligence

Lease Accounting

Changes

Legal Process

Outsourcing

Regulatory

Compliance

Sales

Leadership

Supply Chain

Management

Contract Management

Turn electronic contract libraries into competitive advantages.

Who needs our help?

Many have developed, sold, bought, and implemented contract management software. Many have struggled to use the asset to its fullest potential. All effective software requires consistent, high quality data input in order to remain effective. Contract management software often struggles with this most basic requirement.

Solve the "legacy contract load" problem

Whether developed internally or purchased externally, on premise or in the cloud, contract management software implementations all require the loading of existing contracts. It does not matter if those contracts are on paper, in electronic format, or stored in another contract management software system, customers and providers alike waste effort and dollars migrating legacy contracts into the new system.

 

LegalSifter resolves the "legacy contract load" problem with ContractSifter Service. We take on the one of the ugliest parts of the contract management process - data migration - with speed, efficiency, and quality. ContractSifter combines the latest in natural language processing and machine learning algorithms to extract the terms and conditions that you need, all under the guidance of living, breathing humans.

 

Ensure that contracts signed outside your system or on 3rd party paper make it into your contract management software

The most successful contract life-cycle management software implementations often do not address the reality that contracts are executed beyond the reach of the system. Sometimes, your team signs contracts on 3rd party paper.

 

Ensuring that those agreements make it into the software is a challenge.  Contracts are seldom owned by one person in an organization. They are the responsibility of many people, teams, and functions.

 

With ContractSifter Plus, team members only have to email their 3rd party contracts to one place at the end of each day, week, month, or quarter. The LegalSifter team and its service partners will ensure that those 3rd party contracts make their way into your organization's contact life-cycle management software system in short order.

Contract Negotiation

A second set of eyes to avoid missing hidden terms.

Who needs our help?

General Counsels and their teams never have the time they need.  Under constant pressure, underfunded, and out of time, they are constantly concerned about missing key terms and conditions in contracts. ContractSifter gives them another set of eyes in the form of our Sifters.

Double-checking your contracts

Our Sifters use natural language processing and machine learning to find language that may be buried in the details that an overworked general counsel may gloss over, no matter how experienced. Our general counsel customers use ContractSifter as a checklist, crisscrossing a contract for anything related to indemnification, damages, most favored nation pricing, and other key terms they are worried about on a daily basis. Our customers negotiate contracts faster and with higher quality with ContractSifter.

Due Diligence

Understand contractual obligations in a short period of time in any due diligence situation.

Who needs our help?

Buyers must know what they are buying and what obligations they are assuming before completing a transaction. They must grasp the full nature of the seller's intellectual property issues, contingent liabilities,  contracts, and much more. Due diligence teams are under tremendous time and fiduciary pressure to search through massive amounts of information to discern risk.

Identify the core elements of material contracts with

computer-aided, people-driven data extraction and analysis

Assessing contracts during due diligence inquiry is one of the most time-consuming, critical phases of a merger or acquisition. Much of the energy and cost expended during this phase of due diligence is on the extraction of the terms and conditions of contracts. Diligence teams do this work manually; they have to read all those contracts. The result is often inconsistent quality, incomplete information, and low labor productivity. Frankly, the work is drudgery for most humans.

 

LegalSifter uses machine learning algorithms to sift terms and conditions out of the mountains of contracts to stop paperwork fatigue. When compared to your team reading the contracts on their own, humans empowered with artificial intelligence deliver higher quality results, faster and at a lower cost.

Understand the assignability and change of control

provisions of a target’s contracts

Generally, contracts are freely assignable from one entity to another.  In real life, the opposite is true. Frequently, commercial clauses come with anti-assignability clauses that require the other party’s written consent.

 

M&A deal structures determine the pain or ease of contract assignment.  In an asset purchase, all contracts with an anti-assignment clause will require the consent of the counterparty before the target may assign the contract to the buyer.  Stock purchases or mergers do not require such consent, unless the contract has a change of control clause.

 

The algorithms of ContractSifter will successfully pull the assignment and change of control clauses from target contracts, as well as effective dates, parties, people to whom notices are sent, notice addresses, and a number of other clauses needed to support due diligence.

ContractSifter helps diligence teams digest contracts quickly – 25% faster by our estimates. It helps them zip around contracts in time-compressed projects, saving time and uncovering risk.

Lease Accounting Changes

Prepare for the upcoming FASB and IASB Lease Accounting Changes.

Who needs our help?

After more than a decade of debate, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued new lease accounting standards. Millions of leases have to migrate to balance sheets over the next three years.

Prepare for the new FASB and IASB Lease Accounting Standards

According to the IASB, over 85% of lease commitments held by listed companies using IFRS Standards or US GAAP do not appear on balance sheets. They all have to migrate there in the next three years. Tens of thousands of companies will be reviewing all of their lease commitments, extracting and creating structured data tables to support new look financial statements. Most organizations are woefully unprepared for this massive shift in financial accounting.

 

ContractSifter Plus offers a solution.  Give us access to your contracts, and we will use the latest technology to extract the terms and conditions that you need under the guidance of living, breathing humans.

Lease abstraction data will never be so important

Lease commencement date, lease expiration date, renewal options, termination options, purchase options, lease payment options, assessment date, lease classification, discount rate, initial direct costs, lease incentives, residual value guarantee, and prepaid / accrued lease-related balance represent much of the data required to navigate lease accounting standard changes.

ContractSifter Service will help customers get a handle on their lease commencement dates, lease expiration dates, renewal options, termination options, purchase options, lease payment options, assessment dates, and everything they need to navigate the new lease accounting standard changes.

Legal Process Outsourcing

Speed up your contract reviews and abstraction work by 25%+

Who needs our help?

Outsourced legal work includes contract drafting, compliance assistance, e-discovery, and litigation support, among many other functions. The market is dominated by labor-only solutions, often from low-cost country workers trained in the buyer’s host jurisdiction.

Lower your costs, speed up your engagements, improve your quality, and win more business

The Global Legal Process Outsourcing market is as competitive as any in the world. Cost reduction is the primary driver for buyers; price is the primary point of differentiation for suppliers. Today, few of these suppliers have access to the latest in artificial intelligence. ContractSifter offers a connection to the latest technology. Those that integrate machine learning into their operations will take a step forward towards more business, faster turnaround times (25%+), and higher margins.

Improve your quality

Human data entry error rates are hard to pin down, but most believe that it ranges somewhere around 1%. That's an average of many averages. Intuition and experience would tell most people that 1% is often low. People are, after all, human.

 

The Sifters of ContractSifter are not infallible, but they do improve with time and volume. Our software requires that a person is involved in every sift, improving the quality of any output in a labor-only approach. A human by herself is not as consistent as a human plus a learning machine. She has to sleep, eat, and relax; our software does not.

Regulatory Compliance

Satisfy record-keeping regulatory requirements in financial services.

Who needs our help?

Faced with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the Sarbanes–Oxley Act (SOX), and the Bank Recovery and Resolution Directive (BRRD) from the European Union, global financial service institutions have never faced as much regulation around the details of their contractual obligations as they do today. Compliance is at a premium, and contractual record-keeping in the market is a consistent challenge.

Eliminate regulatory audit risk in your contract record-keeping

The central banking systems of the United States and the European Union have taken proactive steps to protect the world financial system from another crisis. Among other things, companies must maintain detailed records of their contracts. Financial services firms are faced with documenting everything from governing law to termination rights inside millions of pieces of paper.

 

ContractSifter Service offers a comprehensive approach to financial services firms seeking to stay compliant and eliminate audit risk without undue expense.

Sales Leadership

Know what you sold, when you sold it, and when to renew.

Who needs our help?

Deploying people, segmenting the market, knowing when to specialize teams, and managing renewals are a few of the responsibilities of a sales leader. All of that work requires information. Contracts trap much of the data needed to support the most strategic of sales decisions.

Save sales support and contract administration cost and time

Signing scores of contracts, amendments and order forms each quarter is normal for the smallest of organizations. Processing those agreements is a manual exercise for customer service and contract administrators. They read and type in the minimum amount of information to trigger the follow-up needed to meet customer expectations.

 

ContractSifter speeds up the contract administration process, improves quality, and allows sales leaders to redeploy inside team members to more important elements of the sales process. We use machine learning algorithms to sift terms and conditions out of the mountains of contracts to prevent paperwork fatigue.

 

When compared to a team reading contracts without assistance, people armed with artificial intelligence deliver higher quality results faster and at a lower cost.

Look deeper into your results for revenue growth

Contracts hide obligations, opportunities and liabilities. Most organizations track their value, effective dates, what was sold, who closed the deal, and other straightforward lagging indicators inside of their contracts. ContractSifter offers the chance to look deeper to answer questions like the following:

 

  • How are our master agreements changing over time?
  • Are we signing deals that leave us open to consequential damages?
  • What trends are we seeing in payment terms?
  • Do opportunities with shorter sales cycle have early termination clauses?
  • Which contracts will yield the most revenue in the coming quarter?

Supply Chain Management

Ensure compliance with your playbook, identify your liabilities, and take advantage of cost savings.

Who needs our help?

Global supply chain leaders face ever increasing complexity in their roles. Knowing that risk, opportunity, and obligations exist trapped somewhere on pieces of paper is not a sustainable strategy in the 21st century.

Ensure your team plays by your sourcing playbook

Keeping a global supply chain team aligned with common sourcing strategies often requires a category strategy playbook. A playbook includes the rationale, processes and benefits of a category approach. It ensures consistency.

 

It also includes an outline of key terms and conditions to negotiate in supplier contracts. When executed well, a playbook ensures that all team members understand the rationale behind payment term objectives, termination clause flexibility, and liability limitation requirements. Supply chain teams optimize contracts globally and locally with sourcing playbooks.

 

LegalSifter helps supply chain leaders ensure that their teams are executing to the playbook. For example, insight into damages, payment terms, and right of audit, rarely captured manually, become commonplace with our algorithms.

Assess your vulnerabilities

Contracts hide obligations, opportunities and liabilities. Most organizations track their value, effective dates, what was sold, who closed the deal, and other straightforward lagging indicators inside of their contracts. ContractSifter offers visibility deep into contracts to answer questions like the following:

 

  • How are our master agreements changing over time?
  • Are we signing deals that leave us open to consequential damages?
  • What trends are we seeing in payment terms?
  • Do early termination clause requirements drive longer purchasing cycles?
  • Do we understand the opportunities for cost reduction inside of our contracts?

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Whether to schedule a ContractSifter demo or scope a ContractSifter Service project, we are happy to help. Please complete the form below, give us a call or send us an email.

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