PwC collaborates to launch AI-powered contract scanner
PwC, Microsoft, and software firm Icertis have joined forces to create an AI-powered platform that scans contracts to expediate decision-making.
Icertis, the makers of the Contract Intelligence platform, claims that its product uses AI to scan lengthy contracts to help C-suite execs make informed decisions without any need for a human to review them.
According to PwC, manual contract management often consists of “exhaustive and disjointed processes” which means a lot of the data isn’t truly accessed.
The accounting giant added that ineffective contract management can cost companies anywhere between five and 40% of the contract value, as important entitlements such as rebates, volume-based discounts, and inflation-triggered price adjustments are often forgotten.
Decision makers can protect themselves from legal issues by deploying the platform – powered by Microsoft Azure – which uses AI trained on millions of contracts which then connects the relevant data to the systems and processes.
The Big Four firm claims the platform will result in significant cost savings and reduced revenue leakage, enhanced visibility into the delivery of ESG commitments and better compliance and risk management.
Nicole Dezen, chief partner officer at Microsoft added: “As Icertis and Microsoft further integrate generative AI into contracting, customers will realise even more increased productivity, improve bottom-line performance and drive growth.”
PwC, which is serving as the transformation partner, plans to integrate Icertis into Microsoft Azure powered solutions, “to help clients achieve enterprise-wide transformational value”.
The announcement follows a number of strategic acquisitions and alliances by PwC including an initiative with OpenAI-backed firm, Harvey.
Built on ChatGPT technology, Harvey uses natural language processing, machine learning and data analytics to enhance various aspects of legal work. PwC will also be developing use cases for tax.
There are a range of Contract Management platforms and software tools out there, including JP Morgan’s tool, which uses machine learning and AI to interpret the wording of a contract and offer the contract’s outcomes and risks – work that’s usually conducted manually by lawyers.
Other solutions include ones from established players such as PandaDoc, Docusign and Concord as well as from start ups such as SpotDraft – an AI engine personalised for legal teams.
Garner predicts that legal tech spending – which includes contract management platforms – will increase threefold by 2025.
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