Contract Redlining: Teaching AI to be polite
Redlining has long been an essential part of the contract negotiation process. Traditionally, lawyers have followed unwritten rules of etiquette when suggesting changes to a contract. These rules have evolved over time, emphasizing respect for the original drafter's work while still ensuring that client interests are protected. As AI-powered contract review tools like Screens.ai enter the scene, they must be taught to navigate these delicate waters with the same finesse as their human counterparts.
The Unspoken Rules of Redlining
Contract review etiquette has developed organically among legal professionals over the years. The core principle is to maintain a collaborative approach while addressing necessary changes. Some key "rules" include:
- Minimizing changes: Make only essential modifications to meet your standards.
- Preserving document integrity: Avoid wholesale replacements of clauses when possible.
- Being concise and precise: Use targeted edits rather than broad strokes.
- Respecting the original work: Recognize that the contract is someone else's creative effort.
Otto Hanson, founder and CEO of Screens, emphasizes this approach: "When you're redlining a contract, you have to be very, very courteous with your counter party. You want to try to keep as much of the integrity of the document as possible while still making the changes you need to serve your client."
The Nuances of Negotiation
The stringency of contract review is influenced by a mix of factors that aren't always obvious. For instance, as the end of the quarter approaches, people might be more willing to bend their usual standards in negotiations. If a salesperson is eager to close a deal, legal may be pressured to use softer language to get a signature. Power dynamics also matter when one company is considerably larger or more global than the other. Some organizations prefer minimal changes, while others are open to longer back-and-forth discussions. This nuanced complexity makes it challenging for AI tools to navigate the subtleties of human negotiation. It highlights the need for sophisticated algorithms that can adapt to various situations while maintaining a respectful and collaborative approach.
Teaching AI the Art of Polite Redlining
Screens.ai has guided their AI system to make thoughtful edits with nuanced redlining etiquette, balancing the need for precision with the importance of maintaining professional courtesy. Hanson explains, "We instruct the AI when it's working on third party paper to try to be as concise as possible. This often means changing as little as one or two words to bring a clause up to the required standard, rather than wholesale replacements”. This granular approach ensures that the integrity of the original document is preserved as much as possible, respecting the work of the original drafter.
Screens is also designed to balance the need for correction with the goal of easy acceptance by the counter-party. This involves not just making the necessary changes, but doing so in a way that is least likely to offend or provoke resistance from the other party. There's a trade-off between making a change that satisfies a party's requirements and making one that is "unobjectionable and acceptable to the counter party".
Benefits of Screens’ Approach to Contract Review
Screens’ ability to handle contract review with human-like nuance offers several advantages to legal teams:
- Efficiency: Screens can quickly identify and suggest targeted changes, saving time.
- Consistency: Screens applies etiquette rules uniformly across all contracts.
- Customization: Users can customize suggested redlines with instructions to be more or less aggressive.
- Reduced friction: Polite, minimal edits are more likely to be accepted, streamlining negotiations.
At Screens, our goal is to enhance efficiency and effectiveness while maintaining the delicate balance of negotiation etiquette. By guiding the AI to wield a scalpel instead of a sledgehammer, Screens keeps the contract negotiating process advanced but civil, ensuring that every change is respectful and collaborative.
To learn more about how you can securely redline contracts with efficiency, accuracy, and good manners, book a demo with a Screens expert here.
