Beyond the storage and management of executed contracts, our AI links and organizes related information, transforming it into actionable knowledge to support contract management through a brand-new approach.

 

Tokyo, Japan – August 1, 2024 – LegalOn Technologies is proud to announce the release of its innovative new application, dubbed simply ‘Contract Management’, on its AI Legal Platform LegalOn Cloud. With the addition of the Contract Management Application, a series of key legal tasks such as case intake, contract creation, contract review, and managing contracts after execution can be performed on LegalOn Cloud. In addition, our AI can systematically organize and manage not only the information contained in the contract, but also related information such as key context leading up to the conclusion of the contract, together with relevant reference materials. This makes it possible to check executed contracts and related information at any time without hassle.

 

LegalOn Cloud is an entirely new AI technology platform designed specifically for corporate legal departments, distinct from traditional legal tech solutions. With LegalOn Cloud, customers can utilize various legal task enablers such as matter management, contract management, contract review, legal research, and law firm created legal document templates, all on a single platform tailored to their needs. Additionally, as users work on ”
LegalOn Cloud, knowledge is naturally accumulated and organized by the AI, enabling next-generation knowledge management where desired information is recommended automatically. LegalOn Cloud provides a completely new platform for legal operations.

About our ‘Contract Management’ Application

LegalOn Cloud’s Contract Management application automatically extracts contract information (e.g., title, execution date, party names, start date, and end date) and assembles it into a searchable database by simply uploading executed contracts. This allows for centralized management of contracts and enables control of contract risks. In addition, the ‘Contract Management’ application can store various documents such as invoices and specifications at no additional cost, and link them to the executed contract.
Our application is also compliant with the Electronic Bookkeeping Law (Japan-specific).

‘LegalOn Cloud’ supports enhancement of knowledge management by linking our various applications

In addition to the new ‘Contract Management’ application, our existing ‘Work Management’ and ‘Review’ applications can be used to link pre-execution information with already-concluded contracts. This allows for management of the background context of the contract, the review and negotiation process leading up to the conclusion of the contract, and additional reference information.
In addition, ‘LegalOn Cloud’ can search for information stored in the ‘Contract Management’ application as reference information when reviewing new contracts without any hassle. It is also possible to refer to the information without having to search for it by using the recommendations provided. With this application, we aim to realize a world in which users do not need to search and investigate, but are instead given the information they need seamlessly.

The Importance of Contract Management

A contract becomes effective only after it is executed, and unless the contract loses its validity, the obligations stipulated in the contract must be observed. However, not understanding the content of your contracts leaves open the possibility that unnecessary contracts will continue to be renewed, or that contractual obligations will be violated without the company’s knowledge. In fact, according to our survey, 44% of respondents said that they have experienced automatic contract renewals without noticing the contract renewal rejection deadline (Figure 1), and 11% said that they have violated the contents of a signed contract (Figure 2). These problems are often exacerbated by inadequate contract management systems.

Figure 1 (left) Figure 2 (right) LegalOn Technologies: “Survey on Contract Work,” conducted July 2024.

 

In addition, existing contract management applications and systems generally store and manage contracts that have already been executed, making it difficult to link and store related information such as the background context behind the execution of the contract and relevant reference materials, making it virtually impossible to build an useful knowledge management system. In fact, according to our survey, about 95% of respondents indicated that there are times when they would like to review past contracts, and of those times, the items they had wanted to review along with the contract included the history of execution and revisions (47%), purchase orders (43%), and negotiation history (41%) (Figure 3), (Fig. 3), indicating a strong need for confirmation of related information.

Figure 3: LegalOn Technologies: “Survey on Contract Work,” conducted July 2024.

 

LegalOn Technologies now offers its ‘Contract Management’ application that serves as a foundation for managing executed contracts and related information, thereby supporting the realization of a contract management and knowledge management system for customers.

‘Contract Management’ application Compliance with the Electronic Bookkeeping Law

The “LegalOn Cloud” contract management application meets the requirements for scanner storage and electronic transaction data storage under the Electronic Bookkeeping Law (Japan-specific).