Case Study: Icertis and the AI Evolution in Enterprise Contracting

Background

Icertis, a renowned contract management software company, has significantly advanced in integrating AI into enterprise contracting. Launching its generative AI tools in July 2023 as part of an early adopter program, Icertis has collaborated with notable customers like Johnson & Johnson, AmerisourceBergen, and Boston Consulting Group. These AI tools, combining Icertis’s proprietary AI models with OpenAI’s large language models, aim to revolutionize how contracts are managed, making it easier for clients to ensure their contracts align with company standards.

Key Takeaways

  • Icertis has pioneered the integration of generative AI in contract management, introducing groundbreaking applications for the first time in this industry.
  • The company has established strategic partnerships with global leaders, such as Johnson & Johnson and Boston Consulting Group, to facilitate the early adoption of its AI technologies.
  • Icertis’s AI tools significantly streamline the process of contract analysis and standardization, making it more efficient for clients to ensure compliance with company standards.
  • One notable financial benefit achieved through the use of Icertis’s AI tools includes a significant increase in cash reserves, with one client adding $30 million through optimized contract terms.
  • Icertis is expanding its reach by developing specialized AI tools for various sectors, including a notable focus on solutions for government contractors.

Approach

Icertis’s approach involved developing ICI Contract Intelligence (ICI) Copilots, based on its Icertis ExploreAI™ Service. This entailed utilizing Azure OpenAI Service and Icertis’s AI models, leveraging rich data from contracts, enterprise systems, and the Icertis Data Lake. The solution was aimed at turning commercial agreements into strategic assets, thereby enhancing contract efficiency and insights.

Implementation

The implementation of Icertis’s AI-powered tools involved a strategic and multi-faceted approach. At the core were the ICI Contract Intelligence (ICI) Copilots, built on the Icertis ExploreAI™ Service. This advanced setup utilized a combination of Azure OpenAI Service and Icertis’s proprietary AI models. The tools leveraged rich data sources, including a company’s existing contract portfolio, integrated business systems, and the expansive Icertis Data Lake. The goal was to transform traditional contract management into a more dynamic and intelligent process.

For instance, the ICI Interactive Insights Copilot was designed to facilitate deeper engagement with contracts, allowing decision-makers to rapidly uncover insights through both pre-defined hierarchical prompts and free-form queries. This tool was particularly adept at highlighting key contract provisions and relating them to other pertinent contract information, thereby elevating the negotiation process and providing instant answers to critical business questions.

In parallel, the ICI Risk Assessment Copilot was implemented to automate and expedite the review of large volumes of contracts. This application compared the attributes of contracts against a company’s standard playbook and practices. Its primary function was to enhance risk management by ensuring that each agreement contained the required clauses and approved language. Beyond providing a risk score, this tool employed guided prompts that enabled legal teams to swiftly pinpoint and address instances of non-compliance or missing attributes.

This not only eliminated time-consuming and error-prone manual reviews but also identified agreements that did not necessitate further scrutiny. The seamless integration of these AI tools into clients’ existing systems was crucial, ensuring that the transition to AI-enhanced contract management was both efficient and effective, with minimal disruption to ongoing business operations.

Results

The results were transformative. One client significantly increased their cash reserves by $30 million through optimized contract terms. These tools provided comprehensive insights into contract management, leading to more efficient negotiations, risk management, and overall improved contract compliance.

Challenges and Barriers

The primary challenges included ensuring the confidentiality and security of contracts, a critical concern given the sensitive nature of the data. Moreover, integrating AI into complex and varied enterprise systems presented technical challenges.

Future Outlook

Looking ahead, Icertis aims to continue leading the market in generative AI innovation for contract management. The company plans to expand its AI capabilities across multiple industries, ensuring that the full potential of contracts as strategic assets is realized. With its commitment to innovation and strong partnerships with industry leaders, Icertis is well-positioned to redefine contract management in the digital age.

Sources:
Legal tech teams turn to AI to advance business goals
Icertis Brings Generative AI to Enterprise Contracting with Delivery of First Contract Intelligence Copilots
Icertis introduces AI-powered contract intelligence solution for government contractors
PwC launches AI collaboration with Microsoft and Icertis


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