Intelligent automation are being adopted across all industries and functions. Seeking to improve operational efficiencies and reduce costs, leading companies are already beginning to apply machine learning (ML) and advanced analytics to contract life cycle management (CLM). Are you ready to capture this value?
Address the challenges of contract management with leading technologies
Contracts define business relationships: they formalize purchase and production arrangements—including prices, quantities, and time periods—and outline conditions for when things go wrong. The more your business grows, goes online, or globalizes, the larger the role of contracts in your organization. Therefore, the ability to systematically manage contract creation, execution, and analysis is central to risk management, financial performance, and operational efficiency.
Yet, organizations across all industries typically face two challenges related to CLM; ineffective processes and costly support.
Companies with ineffective processes will execute a large number of agreements globally, but impose little standardization. They are unable to manage the use of templates or enforce standard terms and conditions, and then have limited visibility into the variability of the resulting contracts. Even when contracts are stored in a single repository, manual effort is required to identify noncompliant and nonstandard terms. Further, contracts are typically text based documents, so the data is difficult to leverage for driving insights.
Because the personnel involved in negotiating, supporting, and managing effective contracts are often expensive to train and retain, CLM can be costly to support. Large legal organizations are needed to support procurement activity, manage contract redlines, and help enable compliance with changing regulations. As a result, overburdened legal resources are tasked with administrative roles, instead of strategic, value-added contributions.
Fortunately, modern artificial intelligence (AI)/ML techniques can help provide solutions to both problems. Going well beyond the basics
of repositories, workflows, and Web-based contract authoring, KPMG’s Cognitive Contract Management (CCM) solution—built on Google Cloud and using Google’s ML APIs, tools, and technologies—can ingest contracts, interpret language, extract data elements, analyze content, and support enhanced decision-making during the contract life cycle. With CCM, your company may improve processes and reduce costs associated with contracts.
KPMG: Uniting contract management experience with artificial intelligence
With cross-industry experience in areas such as royalties, licensing, distribution agreements, advertising, digital content, and more, KPMG’s Contract Compliance Services (CCS) professionals can help you assess your relationships and contracts with vendors, distributors, and licensees. KPMG professionals understand the complexities and nuances of a range of business contracts, processes, and procedures and have been able to help companies recover revenue while maintaining and improving relationships with their business partners.
This experience and knowledge is an integral part of KPMG Ignite, a portfolio of AI capabilities. The Ignite portfolio includes KPMG-developed technology, leading open source tools and secure, scalable services from our partners like Google Cloud. The portfolio also includes frameworks, design patterns, research, experimentation, and highly skilled data scientists and engineers. When applied to contract management in KPMG’s CCM solution, KPMG Ignite unlocks the value of AI so your company can:
Google Cloud: The platform behind Cognitive Contract Management
Google Cloud brings valuable cloud and ML technology for powering next-generation contract management. Built for large-scale elasticity and stability, Google Cloud is secure, high-performing, and cost-effective. With evolving ML technology, Google Cloud is also constantly improving. Because KPMG’s CCM solution leverages this technology, CCM will adapt, change, and improve as it is used. Google Cloud’s powerful ML capabilities enable you to tap into your contract database to find leakages, compare pricing, and enforce clauses.
As part of its alliance with Google Cloud, KPMG leverages a broad suite of ML-powered tools and cognitive services that speed up integration, development, and deployment. Because Google Cloud is open by design, its APIs enable integrations to almost limitless platforms and channels.
The capabilities and benefits of Cognitive Contract Management
Leveraging the ML capabilities of Google Cloud, KPMG’s CCM solution can be trained to handle any type of contract and can be customized to your specific objectives for extraction, comparison, and compliance. In fact, CCM has already been used to support leasing agreements, investment management agreements, commercial credit agreements, securities prospectus documents, services contracts, supplier contracts, and more. Its abilities include:
CCM can be applied to both long- and short-term contract management challenges. For example, CCM can help you realize these benefits:
Extracting the value due from contracts is a chief concern of many executives. Today’s leading companies are already leveraging AI/ML and advanced analytics to automate or augment contract management and strengthen compliance. With KPMG’s CCM solution and Google Cloud, you too can improve the contract management process—reducing operational costs and freeing your talented legal team to work on strategic, not administrative, projects.
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