Contract Intelligence

Anand Nerurkar
Nov 17
2 min read

What is Contract Intelligence?

Contract Intelligence is the capability to automatically read, understand, analyze, and extract insights from legal and procurement contracts using AI.

It converts static PDF/Word contracts into machine-understandable, structured, risk-aware data — enabling automation across S2C, Supplier Management, Risk, and P2P workflows.

In short, it turns contracts from documents into data + insights.

⭐ How does AI help in Contract Intelligence?

1. Clause Extraction & Classification

AI reads the entire contract and automatically identifies:

payment terms
delivery terms
indemnity
liability caps
termination
SLA obligations
data protection clauses
ESG clauses
confidentiality
audit rights

Benefit: Faster review, fewer manual hours.

2. Risk Detection & Risk Scoring

AI detects risky or non-standard language based on:

enterprise procurement guidelines
legal policies
compliance baseline (GDPR, SOC2, ISO)
past dispute patterns
financial risk signals

Benefit: Reduced legal & commercial risk.

3. Automatic Redline Suggestions (AI-Generated)

AI proposes:

safer clause alternatives
compliant language
missing mandatory clauses
negotiation options
vendor-biased text

Benefit: Contract cycle time reduces 30–40%.

4. Policy Alignment Check (0–100 Score)

AI compares contract content with your internal policy, producing:

clause-level scores
risk heatmaps
governance gaps
mandatory clause checklist

Benefit: 95%+ compliance accuracy.

5. Contract Summarization for Non-Legal Users

AI converts complex contracts into:

1-page summaries
key risks
obligations & SLAs
renewal terms
financial exposure

Benefit: Better business decisions.

6. Cross-Contract Analytics (Spend, Supplier, Risk)

AI extracts structured data from thousands of contracts:

pricing deviations
supplier performance risks
discount leakage
renewal alerts
duplicate obligations

Benefit: 35–45% spend savings.

7. Smart Search: “Find clauses like this”

With vector search + RAG, users can ask:

“Show me all contracts with auto-renewal.”
“Find all contracts with liability cap above 1X.”

Benefit: Audit and compliance in minutes, not weeks.

8. Workflow Automation

AI triggers downstream processes:

automatic creation of supplier record
SLAs and KPIs auto-populated into SRM
auto-creation of renewal workflows
risk scoring pushed to Supplier 360

Benefit: Faster onboarding and operational automation.

“Contract Intelligence is AI that reads and understands contracts like a human, automates risk detection and redlining, and converts contracts into structured, actionable data — reducing cycle time, risk, and cost across the procurement lifecycle.”

Business Impact:

Supplier onboarding reduced from weeks → days
Contract review time reduced by 40–60%
Compliance accuracy above 95%
40% reduction in manual legal effort
35–45% spend savings through leakage detection