AI Contract Performance Monitoring Cuts Penalties by 90%

Problem:

● A software development company signed numerous contracts but lacked a mechanism to oversee the performance of all their terms (invoice dispute notification, early termination notice, late payment interest, annual adjustment reconciliation, etc.).

● This resulted in late fees and customer dissatisfaction.

Solution:

● The company implemented an automated process for extracting actions from contracts using BestAgreement.AI’s “Actions Extraction” feature.

● A dedicated individual was appointed to monitor the fulfillment of all contractual obligations.

Result:

● Late fees were reduced by 90%.
● The company improved its reputation among clients.

Demo: Extracting Actions and Deadlines from a Contract

Detailed Case:

During an internal audit, the software development company discovered that no one was overseeing the performance of all contractual obligations after the contracts were signed. While payments were made on time, critical tasks such as sending termination notices to prevent automatic renewal were not completed. Additionally, the audit revealed substantial penalties incurred due to untimely client reporting.

The company empowered a COO assistant to ensure full contract compliance. Using BestAgreement.AI’s “Actions Extraction” feature, he efficiently analyzed all contracts within 24 hours, extracting deadlines and creating a centralized calendar for tracking.

By automating the process of extracting actions from contracts using the “Actions Extraction” feature, the company reduced the risk of late reporting, subsequently decreased penalties by 90%, and significantly enhanced its reputation by fulfilling all contractual obligations.

Reference:

Industry: Information Technology

Vendor: bestAgreement.ai

Client: SaaS company