How Contract Review Automation Can Accelerate Your Workflows

What Is Contract Review Automation?

Contract review automation is using software to handle the time-consuming task of reviewing contracts.

Instead of combing through every contract by hand, the software takes care of the hard work for you. It scans the document, picks out key details like clauses or terms, and flags anything that might be an issue or doesn’t match your requirements.

It’s a simple way to save time and avoid mistakes, all while making sure your contracts are clear and compliant. This kind of solution is a great fit for businesses or law firms dealing with lots of agreements and needing a faster, more reliable way to get things done without sacrificing quality.

Streamline your contract review with Percipient!

How Does It Work?

Contract review automation typically follows a straightforward process, but different tools may include additional steps depending on their features. Here’s how it usually works:

1. Upload the Contract

The first step is uploading your contract into the software. This can include various types of agreements like vendor contracts, NDAs, employment agreements, or leases.

Most tools are designed to handle commonly used file formats like Word, PDF, or even scanned documents, so the process is straightforward. Simply drag and drop the file or use the upload feature, and the software gets to work immediately.

Here’s a quick list of what can be automated during this step:

• Vendor contracts
• Non-disclosure agreements (NDAs)
• Employment agreements
• Lease agreements
• Sales agreements
• Partnership contracts

2. The Software Analyzes the Document

Once the document is uploaded, the software scans it for key details. It breaks down the text into sections, identifying clauses, terms, and conditions.

The software then compares these elements against pre-defined rules, templates, or legal requirements, depending on how you’ve configured it.

3. Flags Issues or Risks

After scanning your contract, the software points out anything that doesn’t look right or might cause problems. This could include missing clauses, unclear wording, or terms that don’t match your company’s policies or legal standards.

It highlights these sections so you can quickly find and review them. Some tools even organize issues by risk level, which makes it easier to decide what to fix first.

4. Suggests Improvements

Some tools don’t just show you what’s wrong—they also give ideas on how to fix it. For example, if a clause is unclear, the software might suggest better wording to make it more specific. If something important is missing, like a confidentiality clause, it can recommend adding one.

Let’s say the payment terms are too vague. The tool might suggest rewriting it to say, “Payment is due within 30 days of the invoice date.” 

These suggestions make it easier to clean up your contract and ensure everything is clear and up to standard without spending extra time figuring it out yourself.

5. You Review and Finalize

While the software does most of the heavy lifting, the final review is up to you. After the flagged sections are identified and suggestions are provided, you can go through the document and make any necessary adjustments before approving or sharing it.

How Can Automation Benefit The Contract Review Process?

Reviewing contracts can take a lot of time, especially when you’re dealing with long documents or large numbers of agreements. Manually checking for errors, ensuring compliance, and fixing issues can slow things down and use up valuable resources.

Contract automation software helps by handling the repetitive work and makes way for these advantages:

Saves Time

One of the biggest benefits of automation is how much time it saves. Reviewing contracts manually can take hours, especially when dealing with long documents or large volumes.

The software spots key clauses, flags potential issues, and organizes everything so it’s easy to review.

This lets your team focus on higher-value tasks, like negotiating contracts or planning strategy, instead of getting bogged down in the details.

Reduces Errors

No matter how skilled someone is, it’s easy to miss small but important details when reviewing contracts manually. 

Automation helps by catching issues that might otherwise slip through. The software scans for inconsistencies, missing clauses, and risky terms, giving you a clearer picture of what needs fixing.

Here are some examples of errors automation can catch:

• Missing key clauses, like confidentiality or termination terms
• Inconsistent terminology, such as different names for the same party
• Risky language, like unclear payment deadlines or vague responsibilities
• Formatting issues, including misplaced signatures or missing dates

By reducing errors, automation makes sure your contracts are reliable and ready to go.

Improves Compliance

Making sure your contracts meet legal and regulatory requirements can be tricky, but automation makes it much easier.

The software checks for specific clauses, terms, and standards to help you stay compliant. It flags anything that’s missing, outdated, or doesn’t follow the rules so you don’t have to worry about potential legal headaches later.

Maximizes Productivity

Automation takes care of the boring, repetitive parts of reviewing contracts. Your team can stop wasting time on routine checks and focus on more valuable work, like contract negotiation and strategizing.

This change not only frees up time but also helps your team work smarter. With the tedious tasks handled, they’re more productive and able to make a bigger impact on your business goals.

Enhances Collaboration

Automation tools often come with features that make teamwork a breeze. With built-in collaboration options, your team can review contracts together, leave comments, suggest edits, and track changes in real time.

Everyone stays on the same page without endless email chains or version confusion. These tools simplify the process of gathering input, which helps make approvals and finalizing contracts much quicker.

No matter if your team works in the same office or remotely, automation keeps everything organized and ensures everyone’s feedback is included efficiently.

How Can You Automate Contract Review?

Automating contract review doesn’t have to be complicated. With the right tools and strategies, you can make contract review faster, more accurate, and a whole lot easier. Here are a few practical steps to help you get started:

1. Use an Automated Contract Review Software

If you’re ready to automate contract reviews, Percipient is a great option that offers more than just software. 

Managing a ton of contracts can feel overwhelming, but Percipient combines AI-powered contract review solutions with human expertise to make the whole process faster and more accurate.

Here’s how it works: their artificial intelligence scans your contracts, compares them to your predefined standards, flags any potential issues, and suggests edits based on your company’s preferences.

Then, their legal experts step in to review the AI’s findings, double-check the edits, and handle any tricky or complicated parts. This way, you get a well-reviewed contract that’s customized to your needs.

Percipient also takes the time to set everything up just right. During onboarding, they’ll work with your team to understand your preferred clauses and legal standards so their system is tailored to your organization.

After reviewing, they’ll send back a detailed, easy-to-follow version with clear explanations and redlines.

Unlike self-service tools, Percipient’s approach gives you the best of both worlds—smart AI tools paired with human expertise. If you’ve got a high volume of contracts to manage, this service can save you time, reduce risks, and help you move things along smoothly. 

Book a discovery call today!

2. Set Up Standard Templates and Guidelines

One of the easiest ways to make your contract review software work better is by creating templates and checklists.

Think of templates as your contract blueprint—they include all the key sections you want, like confidentiality clauses, payment terms, or dispute resolution. Checklists are your safety net, making sure nothing important gets missed.

When you have these in place, the software knows exactly what to look for and can flag anything that’s missing or doesn’t match your standards. It saves you time, keeps your contracts consistent, and makes the whole process a lot smoother for everyone involved.

3. Train Your Team

No matter how good the software is, your team needs to know how to use it effectively. Train them to understand the tool’s features, interpret flagged issues, and apply suggested edits. 

With the right training, your team can confidently use the software to speed up and improve contract reviews.

4. Integrate Automation Into Your Workflow

Make automation a part of your everyday workflow by connecting it with other tools your team already uses.

For example, some software integrates with e-signature tools, document storage systems, or legal databases, making the process seamless.

5. Regularly Update Your Software and Templates

To keep your contract review process running smoothly, it’s important to regularly update your software and templates. Laws, industry regulations, and company policies can change over time, and outdated templates or tools might miss important details.

Make it a habit to review and adjust your templates to match the latest standards, such as new compliance requirements or updated preferred clauses.

Similarly, make sure your software is running the latest version to take advantage of new features or fixes. Staying proactive with updates helps keep your automation process accurate, compliant, and aligned with your organization’s evolving needs.

Are There Any Limitations?

While contract review automation offers plenty of benefits, it’s not without its limitations.

One of the main challenges is that AI tools can lack context. They’re great at flagging missing clauses or risky contract terms, but they might not fully understand the nuances of complex agreements. This is where human oversight becomes essential to catch subtleties that the software might miss.

Another limitation is the initial setup. Setting up templates, configuring preferences, and training your team takes time and effort. Once it’s done, though, it pays off in the long run with faster and more accurate reviews.

Automation tools can also struggle with highly customized contracts or those with unusual formatting, such as scanned legal documents with poor image quality. These may require more manual intervention to maintain accuracy.

Lastly, automation doesn’t completely eliminate the need for human involvement. While it speeds up repetitive tasks and highlights issues, legal expertise is still needed to make final decisions, especially for high-stakes contracts.

Despite these limitations, combining automation with human input helps you strike the right balance, saving time on routine tasks while ensuring quality and compliance for the details that matter most.

Combine AI and Human Expertise With Percipient

When it comes to contract review, automation alone isn’t always enough. Combining the speed and precision of AI with the insight and judgment of experienced legal professionals is the best way to handle contracts effectively.

That’s exactly what Percipient offers: a smart blend of AI-powered tools and human expertise to deliver accurate, reliable results.

With Percipient, you’re not just getting a tool—you’re getting a service tailored to your organization’s unique needs. From custom onboarding to expert legal review and detailed feedback, they provide a complete solution that saves time, reduces risks, and ensures every contract meets your standards.

If you’re looking for a way to simplify your contract review process while maintaining accuracy and compliance, it’s time to explore Percipient.

Get in touch with Percipient today and take the first step toward smarter contract management!

FAQs About Contract Review Automation

Is there an AI to review contracts?

Yes, there are AI-powered tools that can review contracts quickly and accurately. These platforms are built to help legal and commercial teams scan and analyze large volumes of contract data without getting stuck in the fine print. Tools like Percipient do more than just detect issues—they flag unclear or outdated terms, recommend changes, and even bring in human legal experts when needed.

If you’re handling multiple third-party contracts, AI can cut down the manual work while helping you stay compliant.

What is the contract review process?

The contract review process involves reading and analyzing agreements to ensure all terms are accurate, compliant, and in line with your goals. When using a contract review tool, this process becomes more streamlined. You upload the file, the software scans it for key clauses, flags risks, and suggests edits. For in-house legal teams, this saves hours of manual review and helps catch mistakes before they turn into problems.

How much do contract reviewers make?

The salary for contract reviewers varies depending on experience, location, and industry. On average, legal professionals handling contract review tasks in the U.S. can expect to earn between $60,000 and $100,000 per year. Freelancers or those working with legal tech platforms may charge hourly rates, typically ranging from $30 to $75 per hour.

How much does Kira AI cost?

Kira AI is a popular contract review tool, known for helping law firms and businesses review legal documents quickly. Its pricing isn’t publicly listed and typically depends on the number of users, volume of contracts, and specific use cases.