Whether you’re managing invoices or reviewing contracts, efficient document management is foundational to business success. But it’s typically a time-consuming and error-prone job. 47% of business owners say their chosen online filing system is confusing, while the average employee spends around 28% of the workweek looking for information. Here’s where AI document analysis can help. It’s an automation technology that organizes, extracts, and summarizes data stored within documents of all sorts, so you can streamline, speed up, and optimize your operations. By understanding how this technology can help you handle contracts and invoices, in particular, you’ll be ready to use it to transform your document management strategy.
Simplify contract review
If you have a lengthy contract to read through, AI document analysis can decipher the legalese, save you time, and spare you headaches. This tool can automatically extract, organize, and highlight the most important contractual information that you can’t afford to miss (like clauses, dates, key responsibilities, and relevant parties). You’ll therefore be able to make an informed decision that’s in line with your business interests faster. In fact, even the most basic AI-based extraction technology can save businesses around 30-40% of the hours they usually spend on alternative manual processes, research by PwC reveals. That said, you’re still not off the hook entirely. You should still give the contract a read-through yourself rather than leave it completely in the hands of AI. Just to be on the safe side.
Accurate invoice processing
Invoice processing is another area AI document analysis can help with. Although accurately recording and cataloging invoice data is essential to keep on top of payments, errors are easy to make — almost 40% of invoices contain inaccuracies like typos, missing data, and wrong payment amounts. These errors (especially if they’re frequent) inevitably put a strain on your vendor relationships. Fortunately, AI document analysis can extract key information (like invoice numbers, vendor names, payment amounts, and itemized costs) and convert into an organized format that can be used to create accurate invoices. Creating invoices, therefore, becomes a much smoother process, with far less room for human error.
Notably, AI-powered document analysis even has the capability to decipher additional, free-flowing invoice comments. So that means that any extra information provided that may need human oversight will be flagged as such. For example, a vendor may add special instructions or clarify certain actions taken on the invoice. Either way, AI won’t let important information fall through the cracks.
AI and data security: what you need to know
Data security is of course a hot topic when it comes to mixing AI and business, and particularly so for law firms who need to maintain client confidentiality at all times. Nearly 75% of lawyers say they already use AI in their legal work, while, at the same time, 29% of firms also reported experiencing a data security breach in 2023. That means lawyers should be extra careful to retain client confidentiality while using AI tools. If a tool doesn’t have strong security protocols designed to prevent data breaches and unauthorized access in place, then it shouldn’t ever be used. And that’s a rule to always follow whatever industry you’re in. This way, you can still benefit from the improved efficiency and accuracy these tools provide, without opening your business up to risk of data breaches, data loss, and resulting inevitable reputational damage.
You don’t always automatically get this from all AI providers. Many actually take the data you feed them and use it to improve and train their models, which essentially throws client/customer confidentiality out the window. So, always read the fine print carefully and know what you’re signing up for before going with a certain AI tool. The most confidential solutions will use your data to train your model, and only your model, so that means your data stays private.
AI document analysis tools have the power to streamline your operations and improve accuracy and efficiency. By implementing this technology into your operations, you can successfully get more done in less time, which ultimately has a positive impact on your bottom line.
