Effective access and use of data have changed the way companies are operating their business in this highly competitive and challenging environment. This ever-increasing amount of dynamic data is becoming too much for human processing and analysis. There is so much data being produced that without the help of an automated system this scattered information may not mean anything and cannot be put to good use. Because of increasing competition coupled with demands from their clients, using software to automate tasks is quickly transferring from “nice to have” to “must-have” enhancements. Automation has been helping companies save on their operational costs and improve quality, accuracy, and client satisfaction.
Analyzing this data can help companies and management uncover hidden patterns and identify new opportunities, but they need to be able to access it. Data extraction from unstructured text is perhaps the most challenging issue that information processing faces. Because the implications of missing critical information, such as risk factors, expiry dates, penalty clauses, and opportunities are so much greater in complex contracts, the quality and reliability of data are paramount.
AI promises to do a lot, but it won’t do everything
We hear about Artificial Intelligence (AI), we hear about Machine Learning software systems and other new technologies for data extraction from contracts. But when we dig into the details, the accuracy is not at the standard for the company to make reliable business decisions.
AI software can extract data from contracts easily, but the accuracy cannot be of a six-sigma level. AI promises to do a lot, but it won’t do everything. It sadly lacks the knowledge that humans gain from various unrelated experiences, which at times are useful for analyzing different situations and scenarios. Therefore, human vigilance is quite essential in the process of contract management for stringent quality control to ensure accuracy.