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Contract Review, Risk Flagging & Compliance Tracking

An SME's legal team reviews 40+ contracts per month — vendor agreements, client MSAs, NDAs, and lease renewals. Each review takes 2–3 hours of manual reading, clause checking, and deadline tracking. This RAG-powered AI system reads contracts against your company's policies and flags what matters.

~10 hrs

Saved per week

98%

Clause detection

40+

Contracts per month

Zero

Missed deadlines

How the Automation Works

Three parallel lanes — document ingestion, RAG-powered contract analysis, and compliance tracking — working together.

DOCUMENT SOURCESRAG + AGENTCOMPLIANCE TRACKINGEmail AttachmentsSharePointDocuSignManual UploadIngest & ParseExtract TermsAI AgentQuery PoliciesRAG + KBNon-standardClauses?NOAuto-ApproveUpdate ContractRegistryYESFlag & ClassifyRiskGenerate RiskSummaryLegal TeamReviewApproved?YESUpdate RegistryNODraft RevisionNotesDeadline Tracker30-day Alert7-day AlertRenewal / TerminationAction

Diagram is illustrative. Your workflow will be customised to your contract types, policies, and compliance requirements.

Step-by-Step Breakdown

Eight stages from contract ingestion to compliance monitoring — every step designed to keep your legal team focused on decisions, not paperwork.

1

Multi-Source Ingestion

Automated

Contracts arrive via email, SharePoint, DocuSign webhooks, or manual upload. The agent handles PDF, DOCX, and scanned documents (with OCR).

2

Key Term Extraction

AI Agent

AI agent reads the full contract and extracts: parties, effective dates, termination clauses, payment terms, liability caps, indemnity provisions, non-compete restrictions, renewal conditions, and governing law.

3

RAG Policy Check

RAG + AI Agent

This is where it gets powerful. The agent queries your company’s internal policy database (built as a RAG knowledge base) to compare each extracted clause against your standards. “Does this indemnity clause match our standard? Is this liability cap within our accepted range?”

4

Risk Classification

Decision Gate

Non-standard clauses are classified: Low (minor deviation, likely acceptable), Medium (notable deviation, needs review), High (materially different from policy, requires legal sign-off).

5

Risk Summary Generation

Action

For flagged contracts, the agent generates a 1-page risk summary: what’s standard, what’s not, what the specific deviations are, and a recommended action (approve, negotiate, reject). Sent to the legal team.

6

Approval Workflow

Human-in-the-Loop

Legal team reviews the summary (not the full 40-page contract). They approve, request revisions, or reject. If revisions needed, the agent drafts suggested clause amendments based on your standard templates.

7

Contract Registry Update

Automated

Approved contracts are automatically logged: parties, key dates, obligations, and renewal triggers. The registry is always current — no manual spreadsheet maintenance.

8

Compliance Deadline Tracking

Automated

Agent monitors all active contracts for upcoming deadlines: renewals, terminations, payment milestones, compliance certifications. Sends alerts at 30 days, 7 days, and day-of. Zero missed deadlines.

Before vs After

The measurable impact of AI-powered contract review and compliance tracking.

Without AI Automation

Contract review time

2–3 hours per contract

Clause detection

Manual, dependent on reviewer attention

Policy compliance check

Ad-hoc, inconsistent

Risk summary

Created manually from scratch

Deadline tracking

Spreadsheet, often outdated

Missed renewals per year

3–5 average

Legal team capacity

8–10 contracts per week

With AI Automation

Contract review time

15 minutes (summary review only)

Clause detection

98% accuracy, every clause checked

Policy compliance check

Automatic, against full policy database

Risk summary

Auto-generated, consistent format

Deadline tracking

Automated, never missed

Missed renewals per year

Zero

Legal team capacity

40+ contracts per week

Tech Stack

The tools and platforms behind this automation.

Claude (Anthropic)LangChainPinecone (Vector DB)Make.comSharePoint APIDocuSign APIPostgreSQLPDF Parser (OCR)

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