Uncategorized Archives - Legitt Blog - CLM, Electronic signature & Smart Contract News

Most teams don’t struggle to create contracts - they struggle to keep up with them. After signature, contracts scatter across email, shared drives, CRM attachments, and legacy folders. Sales wants to know what they actually sold. Legal wants to know what was actually agreed. Finance wants to know what to invoice. Compliance wants to know what to update. And everyone assumes someone else is “tracking it.” This is where an AI-native platform like Legitt AI changes the game. Instead of hiring more people to read, extract, compare, and chase contracts, you plug in a system that is always on - watching for new documents, extracting key clauses, comparing against your standards, surfacing risks, nudging approvers, and feeding insights back into your daily workspace. Think of it as having a full-time contract analyst who never sleeps, never forgets a renewal date, never misses a non-standard indemnity clause, and can explain what’s in a 45-page MSA in normal language. This article explains how Legitt AI plays that role, what “always-on” actually means in contract operations, and why AI-native contract analysis is becoming a must-have for legal, sales, procurement, and revenue teams. 1. The Problem with Human-Only Contract Analysis Contract analysis today is still largely manual: A customer sends their paper. Legal reads through to find deviations. Someone copies key terms into a tracker. Someone else checks if data protection terms match current policy. After signature, no one updates the central system. This works when you have 20 contracts a month. It quietly breaks when you have 200. And it completely collapses when you have thousands of legacy documents plus new SOWs, renewals, vendor agreements, and partner contracts coming in every week. The result is familiar: No single source of truth Missed renewals Inconsistent clauses across customers Hidden risk in older agreements Slow reporting (“we’ll have to pull all the contracts and check”) An always-on contract analyst solves exactly this class of problems. 2. What “Always-On” Actually Means When we say always-on, we don’t just mean “AI that can read a contract.” We mean a system that: Monitors all incoming or updated contracts (customer, vendor, partner, SOW, MSA). Extracts key data - parties, dates, amounts, terms, jurisdictions, renewal conditions. Compares against your clause library or company standards. Flags variations or risky provisions automatically. Surfaces relevant insights where people work (My Work, inbox, CRM, approval screen). Learns from corrections and standardizes over time. So instead of, “Send this to legal to check,” the workflow becomes: “Legitt AI has already read this and here’s what’s different.” That is the difference between an AI feature and an AI analyst. 3. Legitt AI’s Core Value: Contracts as Structured Knowledge At the heart of Legitt AI is the idea that contracts should not live as dead PDFs. They should live as structured knowledge: “This MSA has a 36-month term” “This NDA has mutual confidentiality” “This SOW references MSA #4321” “This customer has non-standard audit rights” “This vendor auto-renews unless canceled 30 days before term end” “This contract uses an older DPA than current policy” Legitt AI ingests the contract, breaks it down into clauses, maps those clauses to your internal library, and stores the result in a way that can be searched, compared, and automated. Once that happens, you can do things human teams can’t do at scale - like asking across all your documents: “Show me every active contract that has unlimited liability or no cap.”or“Which customers are still on the 2023 data-processing terms?” That is contract intelligence at the repository level, not at the single-document level. 4. AI-Led Clause Comparison and Deviation Detection One of the most time-consuming parts of contract review is spotting what’s different. Your company has a preferred indemnity clause, but the counterparty sent theirs. Your template has a 30-day payment term, but theirs says 60. Your standard escalation is 5% annually; theirs is CPI-linked. Legitt AI can: Identify the clause type (indemnity, limitation of liability, data protection, IP, governing law, termination). Compare it with your standard or latest library entry. Highlight the deviation (“Counterparty proposes unlimited liability for data breach. Standard is 12 months of fees.”) Suggest actions or negotiation notes. This turns a 45-minute human scan into a 2-minute AI-assisted decision: approve, edit, or send to legal. 5. Continuous Renewal and Obligation Awareness Because Legitt AI has structured the contract, it also knows: When it starts and ends Whether it renews automatically What the notice period is Who the internal owner is What obligations exist (service levels, reporting, penalties) This enables continuous tracking - not a one-time review. The system can nudge: “Your non-renewal deadline for Vendor X is in 10 days.” “This customer contract is due for renewal; pricing review recommended.” “This agreement is still using the older SLA; consider sending updated terms.” An always-on analyst doesn’t wait for you to ask - it tells you what’s coming. 6. AI for Post-Signature Contract Operations Most CLM projects get stuck because they focus too much on authoring and too little on living contracts. The real work begins after signature: Are we billing what we signed? Are we complying with what we signed? Are they complying with what they signed? Are we renewing on the right terms? Are there dependencies with SOWs or addendums? Legitt AI can connect post-signature events (renewals, amendments, addendums, updated policies) to the original agreement and show you a consolidated view: “This relationship currently runs on MSA v2 + DPA v3 + SOW #7 + Security Addendum 2025.” That’s what a human analyst would do - only this one can do it for every customer or vendor at once. 7. Alignment with Legal, Sales, Procurement, and Finance Another reason an AI contract analyst is useful is that different teams look at the same contract from different angles: Legal cares about risk, deviation, jurisdiction, IP, data, audit. Sales/CS cares about renewal date, pricing, upsell/add-on rights. Procurement cares about auto-renewal, SLAs, penalties, termination. Finance cares about payment terms, billing frequency, total value. Legitt AI can present the same contract with role-based insights. So the sales rep opening the deal sees: “Renews in 30 days, current ARR 12,000 USD, expansion rights available.” Legal sees: “Customer on old DPA; limitation of liability is non-standard.” Procurement sees: “Auto-renews; 30-day termination window.” That’s what “always-on” looks like in practice - the system doesn’t just read; it contextualizes. 8. Learning from Your Own Library Because you can maintain a clause library inside Legitt AI (your standard confidentiality, your preferred indemnity, your company’s latest DPA, your industry-specific addenda), the AI always has a benchmark. That means: New contracts can be checked against latest standards. Legacy contracts can be scored for alignment. Re-papering campaigns (e.g. when privacy rules change) can be targeted. Risk can be quantified: “15% of active contracts below current security threshold.” Without AI, these campaigns take months. With an always-on analyst, you can detect, group, and act quickly. 9. Making Contract Intelligence Actionable: Nudges and “My Work” An AI that just says “here’s what I found” is helpful. An AI that says “here’s what you need to do today” is transformational. Legitt AI can push nudges into the user’s workspace: “3 contracts pending customer signature.” “2 contracts renewed without updated terms - review.” “5 EU customers missing 2025 DPA - start outreach.” “Vendor Z auto-renews next week - confirm continuation.” This is how you make sure insights don’t die in reports. The AI analyst becomes part of your daily rhythm, not a tool you remember only at quarter-end. 10. Auditability and Institutional Memory People leave. Mailboxes get archived. Spreadsheets get lost. But your obligation to know what you signed does not go away. An always-on contract analyst like Legitt AI creates institutional memory: It stores the extracted fields. It stores which version was analyzed. It stores the decisions taken (“approved deviation,” “sent addendum,” “renewed on old terms”). It creates a trail you can show to auditors, boards, or donors: we knew, we acted, here’s when. That’s especially important for organizations working in regulated sectors, public sector, development, or with large enterprises that expect contract discipline.Try Legitt AI's Contract Management Software to automate your contracts.