Getting Started with Contract Review Software Securely

Getting Started with Contract Review Software Securely

May 21, 2021 Off By Glespynorson

Contract review is not quite the swash-buckling legal performance that inspires those choosing to study law. However, it is no less crucial. Billions of cases have been won and lost on minor contractual details.

JP Morgan settled a case for $231 million because of a clerical error in a loan to General Motors, and they are only one cautionary tale of many. That doesn’t mean that the contract review process has been streamlined. Anything but. It is tedious and mind-numbing, so it is a good thing that pioneering AI tools are addressing it.

Let’s look at what contract review software does, how to deal with security issues, and which benefits and challenges it presents.

What Is Contract Review Software?

Contract review software leverages advanced AI and machine learning technology to analyze, review, highlight, and edit contracts. AI augments the efforts of the reviewing lawyer by examining contracts not only for line edits but also key terms and clauses.

The magic of contract review software is the ability of the AI to understand various structures and components of a contract and highlight anomalies or issues to avoid mistakes efficiently.

How Long Does It Take to Install Contract Review Software?

Replacing legacy software is the stuff of nightmares. It can take up to 2 years and still not be exactly what you wanted. However, that isn’t the case for contract review software.

Most contract review applications have free, easily downloadable Microsoft plug-ins. You set up a free account, download the plug-in, restart word, and you are good to go. There are no significant challenges to getting started as you see with other software. Up and running in a matter of minutes.

What Are the Benefits of Contract Review Software?

Contract review is vital and takes a blend of legal, linguistic, analytical expertise, and patience. The attention to detail requires unwavering focus because every word, figure, and comma matters. If you disagree, ask Roger’s Communications who lost a $2.3 million case over a misplaced contractual comma.

Reduces the Time and Costs of Review

Review software reduces costs associated with contracts. The traditional review process includes a junior associate reviewing and analyzing a contract before handing it to a senior firm member for a second look. Exceptional use of resources for a slow-moving necessity.

Contract review software scans documents for typographical and numerical errors including a clause-by-clause analysis in seconds saving time for more profitable work.

Peace of Mind Cybersecurity

Cybersecurity continues to be a major concern for all, especially in the legal sector. With the sensitivity of legal information, firms need to take extra precautions with digital security.

For most contract review software, there are several layers of security to safeguard information.

At the first layer, users sign up for the applications by creating password-protected accounts and downloading a Microsoft Word plugin. When they open Word, the plugin starts. Information within the contract is then run through an AI module that can only be accessed through the internal API server of the software. During the transition, all data is encrypted through TLS 1.2, the industry-approved best standards.

Furthermore, users don’t download updates. Updates are made by the application and applied whenever Word is opened. Finally, the software frequently faces strict, internal audits for infrastructure or code vulnerabilities. At all stages, data encryption, privacy policies, secured servers, US and EU data protection law are upheld to the highest standards ensuring cybersecurity.

Improve Contract Accuracy and Suggested Edits or Amendments

Contract review software improves accuracy by automatically highlighting line errors, typos, key facts, and figures throughout the document. This means the reader is not inclined to skip over important details.

When errors are caught, the software suggests one-click, logical type edits to enhance the flow of the document. On occasion, the software will raise ‘scope of work’ or clause-related errors that require you to amend contract terms. Software that fixes small problems and raises big ones is invaluable to prevent costly missteps.

Final Thoughts

Legal firms waited so long before infusing innovative technologies into laborious processes. Once digital service delivery became a client expectation, the pressure was on as tolerance for delays reduced.

With contract reviews being one of the slowest processes, firms without advanced software throw away extreme amounts of time. It is time to update the system and switch to AI-assisted legal practice.