Author: Onit

Harness the Power of AI for Smarter Contract Extraction

Manual contract tagging is time-consuming, error-prone, and inefficient.  AI Contract Extract for ContractWorks automates this process using generative AI to identify and tag critical data elements and clauses. This functionality ensures greater accuracy, and improved compliance—helping legal and procurement teams focus on strategic tasks.

From tagging payment terms to tracking force majeure provisions, traditional contract management methods often introduce inconsistencies and blind spots—leading to missed renewal deadlines, costly compliance violations, or even disputes over unclear obligations. A single overlooked clause can mean significant financial and legal consequences, making accuracy and efficiency in contract tagging more crucial than ever. AI Contract Extract eliminates these inefficiencies, offering an intelligent auto-tagging solution that brings contract management into the future.

Why Contract Management Needs Innovation

Organizations today face growing pressure to optimize workflows while avoiding costly errors. Conventional methods for reviewing and tagging large volumes of contracts are not only labor-intensive but also prone to oversight. As businesses expand, the risk of missing critical obligations or mismanaging renewals increases exponentially.

AI Contract Extract addresses these pain points head-on by leveraging generative AI. It’s built to handle the heavy lifting of identifying and tagging key data—such as governing law or payment terms—so legal, procurement, and risk management teams can reclaim time and reduce compliance risks.

How AI Contract Extract Transforms Your Workflow

• Automated Clause Tagging
  Automatically identifies and tags crucial contract elements—like confidentiality, force majeure, and governing law—drastically reducing manual inputs and potential errors.
• Customizable AI Prompts
  Tailor the solution to your organization’s specific needs by defining unlimited custom prompts for AI-driven tagging, ensuring complete alignment with your business requirements.
• Enhanced Searchability
  A centralized tag library, combined with precise auto-tagging, makes it easy to locate and organize key clauses across vast contract repositories.
• Improved Compliance Tracking
  By consistently capturing obligations and risk clauses, AI Contract Extract mitigates compliance errors and promotes more reliable contract oversight.

Efficiency Meets Innovation

Beyond streamlining manual tasks, AI Contract Extract is designed to elevate your legal and procurement operations:

• Speed and Accuracy: Eliminate time-consuming reviews and reduce errors.
• Better Compliance: Gain a transparent view of critical obligations, reducing risk.
• Greater Visibility: Centralize and structure data to make faster, more informed decisions.

The Future of Contract Management Starts Now

AI Contract Extract provides a sophisticated, automated approach to organizing and analyzing contract data, allowing teams to focus on strategic tasks rather than routine administrative work.

Ready to see AI Contract Extract in action?

Already a ContractWorks customer? Contact your CSM to learn more about how AI Contract Extract can transform your workflow.

New to ContractWorks? Book a demo today to discover how generative AI can revolutionize your processes—and learn about Onit’s full suite of AI-driven solutions designed to streamline every aspect of legal operations.

In-house legal departments are turning increasingly to generative AI (genAI) powered solutions to address the increasing complexity of legal operations. No longer confined to repetitive task automation, genAI enables legal teams to enhance decision-making, streamline workflows, and demonstrate strategic value to the broader organization.

As generative AI becomes integral to legal tech, it is helping in-house teams overcome challenges such as managing legal spend, accelerating contract reviews, and optimizing document workflows. Here’s how this game-changing technology is reshaping legal operations.

1. Generative AI for Legal Spend Analysis

Managing and analyzing legal spend has always been a critical but time-intensive task for legal departments. Generative AI can reduce the time spent on this process by not only automating spend data analysis but also generating insights and recommendations to optimize budget use.

GenAI tools can identify trends in vendor billing, flag anomalies, and forecast future spending based on historical data. These capabilities allow in-house legal teams to make proactive adjustments, ensuring they stay on budget and align with organizational financial goals. Additionally, genAI enables teams to quickly generate detailed reports for finance departments, fostering greater collaboration and transparency.

2. Accelerating Contract Review

In the fast-paced world of enterprise business, slow contract review processes can hinder sales, procurement, and compliance. Generative AI eliminates these bottlenecks by automating the most time-consuming aspects of contract management.

With genAI, legal teams can auto-generate first drafts, review clauses against pre-approved standards, and flag missing or high-risk terms. This reduces contract turnaround times, enhances accuracy, and ensures compliance with internal policies. By integrating genAI-powered tools, enterprise legal departments can streamline negotiations and improve collaboration with other business units.

3. Enhancing Document Management

Enterprise legal departments handle vast amounts of documents, from contracts and compliance materials to litigation records. Generative AI can reduce the stress of manual document management by automating categorization, tagging, and retrieval processes.

GenAI systems analyze document content to generate metadata and organize files into logical groupings. As the system learns from user interactions, it becomes increasingly adept at predicting search needs, saving significant time for legal teams. Additionally, these systems can generate summaries and insights from stored documents, making it easier to identify key information for decision-making.

4. Generative AI for Legal Service Requests

The volume of legal service requests in enterprise settings can be overwhelming. Generative AI simplifies request intake by analyzing incoming queries and automating responses to routine questions. For more complex requests, genAI-powered platforms help prioritize tasks and route them to the appropriate team members.

This automation ensures faster response times, reduces administrative burden, and enables legal professionals to focus on high-value tasks. By improving the efficiency of handling service requests, legal departments can better meet the needs of internal clients while maintaining consistent service quality.

5. Using Predictive Analytics for Risk Management

Generative AI’s ability to analyze large datasets makes it a powerful tool for risk management. Legal departments can use genAI to predict litigation outcomes, assess contract risks, and identify compliance gaps before they become critical issues.

By leveraging historical data, genAI platforms generate actionable insights that empower legal teams to take proactive steps. This not only mitigates risks but also positions the legal department as a strategic advisor within the enterprise.

Why Generative AI is Critical for Legal Teams in 2025

Generative AI is not just an enhancement to existing workflows—it is a transformative force that allows legal departments to operate with greater efficiency, accuracy, and strategic impact. By adopting genAI tools, enterprise legal teams can:

• Gain deeper insights into legal spend
• Reduce contract review times and improve collaboration
• Enhance document organization and accessibility
• Respond faster to legal service requests
• Predict and mitigate risks proactively

In 2025, in-house legal departments at enterprise-level companies must leverage generative AI to keep pace with evolving business demands and position themselves as indispensable strategic partners.

Gartner projects that enterprise spending on legal software will triple between 2021 and 2025, with venture capital investments in legal tech surpassing $1 billion in 2022. These trends underscore a significant shift in how enterprises view legal operations—no longer as a cost center but as a strategic driver of business growth.

To meet growing demands, legal teams are embracing generative AI (genAI) solutions that elevate efficiency and unlock creative problem-solving capabilities. GenAI tools do more than automate tasks– they analyze patterns and enhance collaboration, helping enterprise legal departments optimize spend analysis, accelerate contract reviews, and streamline document management.

As the market gets flooded with buzzy AI products, it’s important to select a solution that can meet your legal team’s unique needs. Look at how generative AI is transforming the legal tech landscape for enterprise companies in these 3 key functions.

1. Optimize Legal Spend Analysis

Managing and analyzing legal spend is a critical but often time-consuming task for enterprise legal teams. Standard e-billing tools provide raw data but distilling that data into actionable insights often requires significant manual effort. Generative AI speeds this process up by not only analyzing past spend data but also generating clear reports, summaries, and suggestions tailored to enterprise needs.

With genAI-powered legal spend management tools, legal teams can automatically flag unusual billing patterns, such as vendors exceeding approved budgets or inconsistent use of alternative fee arrangements. These tools generate detailed, user-friendly insights, enabling legal professionals to uncover inefficiencies, negotiate better rates, and make data-driven decisions that reduce costs.

GenAI also offers predictive analytics, generating forecasts for future spending based on historical data and real-time trends. These forecasts help enterprises proactively adjust budgets and align with financial goals. Sharing these forecasts with finance departments fosters collaboration, ensures accurate budgeting, and demonstrates the strategic value of legal operations.

2. Accelerated Contract Review

For enterprise companies, timely contract review is essential to closing deals and maintaining compliance. However, traditional review processes often slow down due to manual inefficiencies. Generative AI can transform contract workflows by creating tailored drafts, automating redlining, and suggesting improvements based on previous data and predefined parameters.

Generative AI contract management tools like Onit’s ReviewAI analyze contract templates, clause libraries, and negotiation histories to produce pre-reviewed drafts, highlight missing terms, and flag potential risks. For example, genAI can automatically insert appropriate jurisdictional clauses or suggest redlines to align with a company’s standard playbook.  This minimizes delays in the sales cycle and improves legal accuracy.

Beyond expediting the process, generative AI fosters better collaboration between legal and sales teams. By reducing back-and-forth communication and eliminating bottlenecks, enterprise companies using genAI tools report faster deal closures (51% in this instance) and improved working relationships between departments. According to Onit’s Enterprise Legal Reputation Report, genAI not only accelerates contract turnaround times but also enhances the perception of legal teams as proactive, value-driven business partners.

3. Streamlined Document Management

Companies generate vast amounts of legal documents, from contracts and compliance reports to intellectual property filings. Managing and organizing these documents efficiently is crucial, and generative AI provides an innovative solution by automating categorization, tagging, and file organization while enhancing search and retrieval capabilities.

GenAI-powered document management systems (DMS) use natural language understanding to scan and analyze content within legal files, then generate metadata and labels that make locating documents intuitive and fast. The system improves over time, learning from user behavior and new uploads to create increasingly relevant organizational structures. 

In addition, generative AI enhances knowledge sharing across departments without compromising security. By creating access-restricted document views and summaries, genAI allows teams to access critical information quickly while keeping sensitive details protected. This seamless approach not only reduces the administrative burden on legal teams but also supports collaboration across the enterprise.

Why Enterprises Need Generative AI in Legal Operations

As enterprise legal departments face growing responsibilities, generative AI provides the scalability and creativity needed to meet these challenges head-on. Unlike traditional AI, genAI enhances workflows by creating new workflow options, offering tailored insights, and improving collaboration.

By optimizing legal spend, accelerating contract workflows, and transforming document management, generative AI positions legal teams as strategic business partners capable of driving growth. Embracing generative AI is no longer optional for enterprises aiming to stay competitive—it’s a necessity for sustainable growth in the modern legal landscape.

Generative AI (genAI) is redefining the way the legal industry operates, moving beyond traditional AI capabilities. While AI has been used to analyze data and automate repetitive tasks, genAI introduces the ability to create content, such as drafting legal documents, generating case summaries, and even assisting in contract negotiations. This technology enables a shift from process automation to creative problem-solving in legal operations.

Unlike traditional AI, generative AI utilizes advanced algorithms to generate human-like text based on input prompts. It’s not about replacing legal professionals but enhancing their capabilities to deliver precise, efficient, and innovative solutions.

Core Components of Generative AI in Legal

1. Natural Language Processing (NLP) and GenAI

Natural language processing, or NLP, is how software makes sense of written words. While you and I learned language by example, computers take a more algorithmic approach.

Take this sentence, for instance, “On safari, I took a picture of a giraffe in my pajamas.” Although the word order and structure is a little ambiguous, people can parse out the intended meaning. A human will correctly interpret that the speaker is the one on safari taking pictures and will also understand that the speaker, not the giraffe, is the one wearing pajamas. A human makes this correct interpretation of the sentence based on their knowledge about giraffes and pajamas.

Natural language processing, on the other hand, breaks the sentence into nouns, verbs, and other parts of speech. Then, NLP technology transforms the imprecise text in documents, contracts, spoken language, and silly sentences about giraffes into a precise hierarchy of related and labeled components. These sentence structures can be used on their own, but they are often used as inputs into machine learning algorithms to predict outcomes.

NLP is at the heart of generative AI’s ability to understand and create legal text. By analyzing the structure and semantics of language, genAI applications can:

• Draft contracts, legal briefs, and memos based on specific criteria
• Summarize lengthy case law, speeding up legal research
• Identify and flag problematic clauses in contracts

For example, a legal team might use genAI to review hundreds of contracts, extracting key clauses or generating summaries of liability terms, reducing review time dramatically.

2. Machine Learning in GenAI: Supervised and Unsupervised Approaches

Machine learning is broadly broken down into two major categories: supervised and unsupervised. Generative AI leverages both supervised and unsupervised machine learning techniques:

• Supervised Learning: Involves training the AI on annotated datasets to perform specific tasks, like identifying enforceable clauses in NDAs or predicting outcomes of litigation based on historical data.
• Unsupervised Learning: Enables clustering of similar clauses or identifying patterns across case law, providing new insights into legal strategies or compliance risks.

When combined with generative models, these algorithms enable not just analysis but the creation of new, tailored legal documents and predictions that align with a firm’s unique needs.

3. Generative Capabilities for Complex Tasks

Generative AI extends beyond task automation, which what traditional AI does, by addressing complex, creative legal challenges. Applications can include:

• Drafting detailed M&A agreements tailored to jurisdictional requirements
• Generating negotiation-ready redlines for contracts based on historical data and client preferences
• Providing AI-assisted legal advice for routine queries, improving client interactions

How GenAI Transforms Legal Workflows

Generative AI is revolutionizing legal workflows by enhancing efficiency and enabling professionals to focus on higher-value tasks. By automating time-consuming processes like document drafting, legal research, and client interactions, genAI not only accelerates operations but also improves the precision and consistency of legal outputs. Here are a few areas genAI is transforming how legal teams operate in a fast-paced and competitive industry.

Drafting and Reviewing Contracts

With genAI, legal professionals can quickly generate first drafts of contracts and analyze documents for compliance. For instance, genAI tools might highlight missing clauses, flag inconsistencies, or suggest alternative language based on predefined playbooks.

Legal Research and Knowledge Management

GenAI accelerates legal research by summarizing precedents, providing case insights, and even suggesting arguments based on past litigation outcomes. Its ability to parse vast legal datasets ensures faster and more comprehensive research outcomes.

Client Interaction and Engagement

GenAI-powered chatbots can handle initial client consultations, providing answers to frequently asked legal questions or guiding clients through onboarding processes. This allows lawyers to focus on high-value tasks while ensuring clients receive timely responses.

Challenges of GenAI in Legal

Like all tools, genAI isn’t without its risks. In addition to the challenges genAI poses, the legal industry itself also introduces unique problems to handling all the data needed to train and use genAI:

1. Data Privacy and Security: Handling sensitive legal information requires robust data governance practices to maintain client confidentiality.
2. Accuracy and Oversight: While genAI generates content, human review is crucial to ensure compliance and mitigate errors.
3. Bias in Algorithms: Ensuring fairness and objectivity in AI-generated outputs is essential, especially in areas like litigation where impartiality is critical.

The Future of Generative AI in Legal

Generative AI is poised to become an integral part of legal operations. According to industry analysts, the adoption of genAI in legal workflows is expected to double within the next five years. Its potential to enhance efficiency, reduce costs, and improve accuracy makes it a valuable tool for modern legal teams.

While genAI is not a replacement for human expertise, it is a powerful ally. By taking over routine tasks and generating valuable insights, it enables legal professionals to focus on complex, high-impact work.

In conclusion, generative AI in legal is not about replacing lawyers but empowering them to work smarter and more efficiently. By harnessing its capabilities, legal teams can deliver better outcomes, faster responses, and more consistent service to their clients.

Generative AI is more than just a trend; it’s a transformative force that’s here to stay.

A New Era of Contract Lifecycle Management (CLM): Quickly and Accurately Draft, Review, Redline, and Edit All Types of Contracts in Minutes 

The legal landscape is rapidly evolving, with technology at the forefront of this transformation. At Onit, we understand that the demands on legal teams are higher than ever before. Efficiency, accuracy, and speed are no longer just nice-to-haves—they are essential. That’s why we are excited to introduce the enhanced ReviewAI, now powered by Onit’s industry-leading generative AI capabilities. 

Pioneering AI in Contract Management 

For over three years, ReviewAI has set the standard in automated contract review as the first software that truly reads, writes, and reasons like a lawyer. But we didn’t stop there. We’ve continuously innovated to ensure that ReviewAI not only meets but exceeds the needs of modern legal departments. Today, we are proud to announce that ReviewAI is even more powerful, thanks to its integration with the latest in generative AI and large language models (LLMs). 

Jean Yang, Onit’s VP of GTM Strategy and AI Transformation, shares, “We’re extremely proud to offer ReviewAI as a standalone product for organizations everywhere. By deploying the game-changing technology of generative AI, we are providing intelligent contract review that is intuitive, collaborative, and user-friendly.” 

Why Generative AI Matters for Legal Teams 

Generative AI is not just another buzzword—it’s a transformative force that is reshaping how legal teams operate. With ReviewAI, you can draft, review, redline, and edit all types of contracts in minutes. The result? Legal teams can focus on strategic priorities rather than getting bogged down in routine tasks. 

ReviewAI delivers: 

• 4x faster contract audit and migration projects 

• 70% faster contract negotiations 

• 400% accelerated data entry and validation projects when connected with Onit CLM, reducing human effort by 60% 

This isn’t just about speed—it’s about enhancing accuracy and boosting overall organizational performance. By leveraging Generative AI-powered chat and virtual assistants, ReviewAI allows users to ask questions and receive answers on the fly, making contract reviews more efficient and precise. 

Reimagining Contract Playbooks 

One of the standout features of ReviewAI is its library of playbook templates, pre-configured with legal concepts, fallbacks, and approved clauses. These templates are ready to be used out-of-the-box, accelerating the review process and ensuring consistency across your legal documents. Legal and business leaders can also configure these playbooks to align with their unique business standards, providing a tailored approach to contract management. 

Natural Language Processing (NLP) further enhances ReviewAI’s capabilities by providing AI-powered legal text processing. ReviewAI meets you where you work, whether it is in Word, via email or a multilingual environment, making it easy for legal professionals or business users to adopt and utilize these tools.  

Moreover, Onit’s commitment to ethics and privacy is paramount. Our detailed Ethics & Privacy / Zero Data Retention policy, coupled with robust support for EU customers, ensures that your data is secure and managed responsibly. 

The Future of Contract Management is Here 

As Jean Yang eloquently states, “ReviewAI represents the future of contract review, delivering precision, speed, and an AI virtual assistant that speaks your language. It’s the adaptable, AI-powered solution for tailored contract workflows that agile organizations need to scale and adapt in an ever-changing, fast-paced business environment.” 

In a world where business agility is key, ReviewAI offers the tools that legal teams need to stay ahead. Whether you’re looking to streamline your workflows, improve accuracy, or simply keep up with the pace of business, ReviewAI with Generative AI technology is your answer. 

Take the Next Step 

Ready to experience the future of contract management? Schedule your demo of ReviewAI today and discover how generative AI can transform your legal operations.