What is generative AI for contracts?
AI has endowed us with limitless possibilities. There’s hardly an industry or process that hasn’t been improved with the right AI technology. From intelligent marketing to product improvement, and customer support, AI has transformed every aspect of businesses and everyday lives.
What is Gen AI and how does it relate to contract management?
Over the last 10 years, AI has learned to read content, including text and image files. The outcome has been so successful that it has revolutionized document and knowledge management by automatically extracting, classifying, and summarizing data. There have, however, been shortcomings when it comes to asking AI to write content instead of just analyzing it.
Today, AI has evolved from just automating routine data tasks to now helping machines leverage textual or visual data to create new variations of content from a prompt. This is referred to as Gen AI.
What is Gen AI?
Gen AI uses AI algorithms to study existing elements of content such as text, audio, or images; identify underlying patterns related to those original inputs; and create completely new content that is similar. Large language models such as GPT-3 and image synthesis such as Dall-E are starting to integrate themselves into many industries due to the value they offer across a wide variety of applications.
Gartner states that by 2025, Gen AI will account for 10% of all data produced, up from less than 1% today. MIT recently came out and described generative AI as “one of the most promising advances in the world of AI in the past decade.”
Gen AI offers many benefits such as:
Higher-quality outputs due to self-learning from all datasets
Lowered risks
Less-biased machine learning models
Depth prediction without sensors
Localization and regionalization of content
Comprehension of more abstract concepts both in simulation and the real world
Due to these benefits, there are several fun applications of Gen AI such as:
Image-to-image conversion: translates an image to another (for example, black-and-white photos to color photos, photos taken in the day to look like photos taken in the night)
Text-to-image translation: produces realistic photographs from textual descriptions of simple objects such as birds and flowers
Photos-to-emojis: changes real photos to emojis or small cartoon faces
Face aging: generates an older version of faces from a young photo
Image processing: upgrades images from low resolution to high
Film restoration: enhances old movies by upscaling them to 4K and beyond
Audio synthesis: renders any computer-generated voice into one that truly sounds like a human
These benefits of Gen AI are already being used to help the following:
Identity protection
Fraud detection
Trend analysis
Healthcare
In addition to the visual AI creative applications mentioned above, Gen AI’s large language models (LLMs) have helped businesses become more efficient by:
Automating sales and marketing emails
Writing business memos
Drafting marketing copy
Calendaring
Content creator roles in fields such as journalism or marketing are starting to shift to make room for bots taking the first pass, and writers or editors focusing on reviewing and improving the language. It goes beyond that: Gen AI has the potential to impact business more broadly, from generating email exchanges to drafting and editing documents—and legal contracts are no exception.
“We have customers who are interested in using AI to draft completely new contract templates, to comply with regulations like data privacy, and to manage their supply chains. We are at the beginning of the real commercialization of AI.”
—Amine Anoun, Senior Director of Machine Learning Engineering, Workday
Elevating Strategy with Workday Contract Management
The true value of Gen AI is realized when it is embedded directly into your core business processes. Workday Contract Management leverages next-generation AI to transform how legal and procurement teams operate. Rather than just storing documents, the platform acts as an intelligent partner, helping you review, negotiate, and edit contracts with speed and precision.
“By implementing a modern CLM platform powered by AI, we have broken volume records on contracts reviewed while reducing average contract execution time by 65% and increasing our contract volume by 40% YoY”
— Legal Counsel, Global Real Estate and Procurement, Western Union
By delivering transparent, explainable recommendations, Workday allows organizations in India to accelerate decision-making and ensure better adherence to evolving data privacy and employment regulations. This AI-first approach reshapes workflows by automating the standard drafting and redlining phases, freeing legal professionals to focus on nuanced negotiations and strategic vendor relationships.
Managing Complex Compliance and Operational Risk
As compliance mandates and local data regulations shift, generative AI moves beyond simple speed to become a critical shield against corporate liability. True AI-driven contract management allows legal departments to instantly evaluate hidden legal risks across historical agreements, standardizing language variables on a massive scale without draining manual review hours.
“You can't be a best-in-class legal department without introducing and becoming comfortable with AI technology. You just can't do it.”
— VP of Law, Technology, and Operations, NetApp
To see how an intelligent, unified platform can remove bottlenecks and streamline your deal execution, explore our full Contract Management solutions for Indian enterprises.