Obligation and compliance management within Contract Life cycle Management (CLM) encompasses the systematic process of identifying, monitoring, and ensuring strict adherence to contractual obligations and regulatory compliance mandates throughout the entire contract life cycle. This encompasses the effective management of contractual commitments, diligent oversight of adherence to relevant laws and regulations, and proactive mitigation of risks arising from potential non-compliance.

The key stages include:

Data Extraction: In this phase, AI-based Optical Character Recognition (OCR) technology is used to extract content from various document types, including images and document files. By leveraging advanced AI algorithms, the system can accurately identify and extract text from these documents making it available for further analysis.

Clause Extraction: Once the content is extracted, an AI model is trained to identify specific clauses and obligations within the agreement. These clauses represent legally binding commitments made by the parties involved. The AI model analyzes the extracted content, searching for predefined patterns and keywords to identify relevant clauses.

Identify Obligations: Using the trained AI model, the system can identify and categorize the extracted obligations. This categorization allows for better organization and understanding of the obligations contained within the contract. The identified obligations, along with their corresponding types, are then stored in a contract summary or database, enabling easy access and reference.

Obligation Management: The contract summary or database provides users with the ability to manage and update obligations based on set parameters. Users can review and modify the obligations, ensuring that they accurately reflect the requirements and commitments stated in the contract.

Type of the users that benefit from the offer:

Procurement, Sales, Legal, Human resource.

Industries that benefit from the offer:

Automobile,Insurance,Manufacturing, Pharmaceutical.

Obligations & Compliance Management

by The Legal Capsule