Here at Seal, we talk about our contract analytics capabilities, but what does “analytics” mean? A quick Internet search reveals a myriad of different definitions:
- The patterns and other meaningful information gathered from the analysis of data
- The analysis of data by the use of mathematics, statistics, and computer software
- The science of drawing insights from raw information sources
And so, the list of definitions goes. But here is the thing, they are all correct!
At its core, the goal of any analytical effort is to harvest and analyze information and identify patterns that allow judgments to be made as to whether or not a better (quicker, cheaper, more accurate, etc.) result is possible. But the method by which a better result is achieved is always the same, a change in behavior. Analytics merely tells you that a change in behavior is more likely to achieve an enhanced result. Now, determining what change needs to be made, coupled with how the change is enacted is the challenge.
Analytics touch nearly every single activity that we perform on a daily basis: Which stocks to buy, sell, or hold on to, the reason more three-pointers are being taken this year than any prior year in the history of professional basketball, the words people choose to use in a blog post (hint hint).
Given all of the above, why would analytics not be used to enhance contract drafting or amending? Are contracts so unique that they would not apply to analytics? Of course, they’re not.
At Seal, we use Advanced Analytics to drive actionable contract insights by gathering contractual information, separating the relevant from the irrelevant, and presenting the themes and patterns that exist, all in an automated fashion. Our Analytics Production Group (APG), comprised of more than 20 legal AI literate lawyers, actively develops advanced contract analytics sets, or Accelerators, to solve a variety of highly complex use cases including Brexit, Procurement contracts, and our newly released Financial Services Suite solution. These contract analytics speed up time to value for enterprise customers, allowing them to access information faster and review information and patterns that may not have been spotted without the use of Seal analytics.
The contract insights that we provide empower users to manage their legal exposure and regulatory exposure and make better business decisions regarding complex documents such as vendor contracts and qualified financial contracts (QFCs). When it comes to these complex legal documents, business users oftentimes have certain expectations. The contract analytics employed can confirm expectations, refute those expectations, and frequently, introduce new considerations.
While Seal employs many attorneys, the job of the APG team is not to draft contracts for our clients, but rather critical data extraction from the documents to identify and protect against risk. This extracted information is quickly generated, easily accessible, and neatly presented, allowing business users to then draft better (less risky, more favorable, etc.) contracts for themselves. Or as we would say, change behavior.
So, although there are many definitions for “analytics”, we’ve found that our contract analysis is the best at achieving actionable results for our customers.