When a legal team runs contracts through ContractPodAi’s Contract Risk & Compliance solution, the technology assesses the documents a score from zero to five indicating whether they are high risk, low risk or compliant.
The AI-powered platform makes risk determinations by reviewing whether the agreements contain key legal obligations based on the contract type.
Company officials said ContractPodAi’s recent addition of roughly 30 built-in playbook templates covering a wide span of common agreements has further enhanced the ability of legal teams to use the platform’s Risk and Compliance solution for high-volume contract types.
“I can run potentially thousands of those contracts through that program in a day or less, and see which ones are high risk, which are the ones that lower risk and which need my attention,” ContractPodAi President and Chief Technology Officer Anurag Malik told Legal Dive.” So it’s a great tool to save attorney time, which is very precious, and direct them in the right direction.”
ContractPodAi officials are hopeful the pre-built playbooks and other new offerings will help the company stand out in a very competitive CLM marketplace that includes companies such as Evisort, Malbek and Ironclad.
Previously, ContractPodAi users could create their own playbooks, but Malik and his team noticed it would typically take legal departments several months and a lot of heavy lifting to set them up.
This was antithetical to the primary reason many legal teams seek out CLM solutions: to boost efficiency in order to better serve their business partners.
Malik said the new out-of-the box playbooks provide users “value on day one” and cover both buy-side and sell-side agreements. It took ContractPodAi about a year to develop the playbooks for customers.
“We wanted them to quickly get the benefits so we've invested the time to do the research,” Malik said.
Malik also highlighted the pre-built contract templates can be customized by users to make clear which language they want to see in particular agreements so the technology can alert them if it is missing.
For example, the software can flag if a limitation of liability clause is absent. It can also spotlight language in a contract that the user flagged it did not want to see.
“Since the new feature is designed to be a “self-service” function, we’ll be working with customers to ensure that the functionality is configured for their businesses and their needs with direct, actionable information (and suggested changes or actions) provided through the “digital playbook,”” said Jerry Levine, ContractPodAi’s general counsel and chief evangelist, in a prepared statement.
Major use cases
Malik anticipates common use cases for the Contract Risk & Compliance solution will be master service agreements (MSAs), license agreements and facilities agreements. He also expects non-disclosure agreements (NDAs) to be reviewed for compliance.
Overall, ContractPodAi has made the most traction in the high-tech, consumer goods and health-care industries. Malik noted high-tech and consumer goods both handle very high volumes of sales contracts.
Meanwhile, the healthcare industry is “very cautious in what they do and how they handle information” and appreciates compliance features that help them cut down on outside counsel spending, he said.
The platform’s promised AI accuracy is in the 75-85% range, Malik said, so he recommends attorneys closely review complex contracts that are higher risk.
The ContractPodAi platform also provides an ability for users to track compliance metrics. This includes monitoring risk data broken down by contract type or region, as well as by vendor.
“If you have a vendor whose performance has not been great in the past, then you can add a metadata tag to tag that,” Malik said.
Users can also closely track contract information such as effective dates, contract value and governing laws.
Meanwhile, the platform’s Visual Snapshot feature aids users in viewing important data about their contracts and taking necessary actions in response, Malik said.
Additionally, ContractPodAi’s next-generation Smart Repository should make it easier for legal teams to find key contract information, he said.