Artificial intelligence is playing an increasingly important role in contract management to optimize processes and secure competitive advantages. Whether in the creation, analysis, or management of contracts, AI enables more efficient, precise, and error-free work, reducing operational costs and legal risks. In the following blog post, Pascal Habegger, Managing Director of Fabasoft 4teamwork AG, the Swiss sales partner of the contract management software Fabasoft Contracts, explains the opportunities offered by AI contract management and what Swiss companies need to bear in mind.
Automatically check contracts for compliance
Companies are faced with the challenge of implementing increasing legal and internal requirements. In addition to national laws, such as the new Data Protection Act (nDSG), many Swiss companies also have to comply with regulations from other countries or the EU if they have international business relationships with the respective countries. One example from the financial sector is the EU regulation DORA (Digital Operations Resilience Act).
AI is a valuable tool for conserving resources and avoiding risks, especially in the event of regulatory changes. AI check catalogs allow you to check individual contracts or your entire portfolio for a variety of aspects, such as knock-out criteria defined by Legal or certain clauses. Once the analysis is complete, the system provides a clear overview of the evaluations, including the identified content. This eliminates the need for manual searches and comparisons of documents.
If action is required, the software then automatically creates the necessary supplementary agreements based on the clause library and optionally starts the defined approval and signature processes, including an integrated digital signature. Fabasoft Contracts offers both a native "advanced electronic signature" and an integrated "qualified electronic signature" in accordance with the Swiss Federal Act on Electronic Signatures (ZertES) or the EU regulation eIDAS. These signatures are legally valid and much more secure than handwritten signatures. External partners are integrated directly into workflows to avoid media disruptions.
Quickly access information
In addition to checking contracts, obtaining information manually also takes a lot of time, especially with extensive contract files and documents. Those responsible can use the chat function to ask the AI about their agreements and thus significantly reduce their workload. Thanks to the Large Language Model (LLM), the AI delivers the right answer from the contract content in just a few seconds, including comprehensible source information.
Use AI without compromising on data protection and IT security
Nowadays, there are many AI tools - but the security of the data used must always be the top priority. As strictly confidential information is involved, especially in contract management, hidden dependencies, unclear data flows or unauthorized access by third parties must be strictly avoided. In order to strengthen their own digital sovereignty, it is therefore more important than ever for Swiss companies to rely on European providers - ideally with Swiss data location - who store and process their data securely and in compliance with the law within the EU.
For this reason, the European contract management software Fabasoft Contracts offers data storage in Switzerland. Various independent certificates and attestations, such as the BSI C5 certification or the EU Cloud Code of Conduct at Level 3, confirm compliance with the highest standards of data protection and security.
Would you like to learn more about Fabasoft Contracts? Here you can find more functions of the smart contract management software.
