Agreement Risk Analysis using Redline AI

Redline AI for agreement documents identifies and mitigates risks that arise from changes or new provisions introduced into the agreement by a counterparty. For example, when a counterparty changes the Limitation of Liability clause in an agreement document, such as by increasing the liability cap or adding a new provision for indirect liability. This tool, integrated with a Copilot interface, analyses the agreement document to compare clauses with pre-approved standard versions and highlights any deviations or potential risks. The system then provides a detailed risk report to guide users through these issues and suggest mitigation strategies.

Key Features

Risk Barometer: The barometer serves as a visual risk assessment tool. It provides an overall indication of the agreement's risk level based on the analysis of the clauses:
- High Risk: Shown in red, if any clause is rated as high risk, indicating high-risk exposure.
- Medium Risk: Shown in yellow, indicating there are no high risks but some medium risks, signifying medium risk.
- Low Risk: Shown in green, indicating all clauses are deemed low risk.
Risk Summary: The risk summary presents an overview of all clauses that have been flagged as risky, categorized by risk level (high, medium, low). It highlights the clauses that require attention and presents the relevant details in a structured manner.
Risk Mitigation Summary: The system also guides on how to mitigate the identified risks, offering suggested actions to reduce or eliminate the potential impact of the risks. Mitigation may include renegotiating specific clauses, introducing safeguards, or revising terms to limit liability exposure.
Risk Detection: The system scans and compares clauses in the agreement document with pre-approved standard clauses. If any clause is modified (for example, a change to the "Limitation of Liability" clause, such as an increase in liability cap or the introduction of new provisions like indirect liability), the system detects these changes. It then displays the clauses with risks, helping users easily identify where changes have been made that could introduce potential issues.
Detailed Risk Information: For each clause that poses a risk, the system provides detailed information, such as
- Risk List: A comprehensive list of all identified risks throughout the document.
- Risk Description: A clear explanation of the risk introduced by the change in the clause.
- Risk Rating: A rating of each risk (High, Medium, Low) based on the severity of the change.
- Risk Type: The type of risk (for example, financial, operational, legal, compliance).
- Risk Mitigation Guidance: Concrete steps and advice on how to address each risk.

The Redline AI tool streamlines the process of reviewing agreements, enabling users to identify risks early and take appropriate action to mitigate them.

Launching Redline AI

This task provides a step-by-step guide on how to launch Redline AI.

Conga CLM version number 16.783 is installed.
Tenant is onboarded.
If Conga Copilot is already enabled in your current Salesforce org, the administrator can enable the Enable Redline AI comply user property.
The administrator has launched the AI Configurator and all the configurations in Salesforce and Conga Platform are set up.
An agreement with clauses is generated. For more information, see Generating an Agreement.

Before launching the Redline AI, ensure that the system environment is prepared and all necessary components are operational. This includes proper configuration of AI services, and confirming that all prerequisite conditions listed above are met. The following steps guide you through the process of launching Redline AI effectively.

Limitation

This feature does not apply to supporting documents.

To launch Redline AI

Select the generated agreement and go to the Documents tab.
The Agreement Documents section displays a list of documents.
Select a document in either DOCX or PDF format.
Note: You can only select one document at a time for analysis.
Click the Redline AI link for each document.

Redline AI is launched for the selected document in Advantage Platform, enabling advanced AI-driven analysis and redlining capabilities.

You can switch to Conga Copilot to ask questions about your agreement document and generate a document summary.

Viewing Agreement Risk Analysis

This task explains how to use Redline AI in the Advantage Platform to analyze agreement risks, view risk summaries, and manage clauses for better agreement negotiation outcomes.

Redline AI offers a comprehensive analysis of agreement risks by comparing clauses against standard benchmarks. It provides actionable insights and visual summaries to help users identify and mitigate potential risks effectively.

To view agreement risk analysis

Launch Redline AI for the generated agreement.
Redline AI opens the agreement document window on the left and the Redline AI window on the right, displaying Risk Summary, Items at Risk, and Items to be Published tabs along with a barometer indicating high, medium, and low risks. If you close the Redline AI window, click the Redline AI icon () to reopen it.
Note: When Redline AI launches the newly generated agreement document, it does not identify any risks associated with this document.
To redline a document, log in to X-Author for Contracts with your credentials and perform the following steps. For more information, refer to X-Author for Contracts for Users documentation.
1. Open the document in reviewing mode.
2. Edit the clauses in the document.
3. Click Finish.
4. Select With Redlines from Save Options.
5. You can deselect the Watermark option and select Reconcile Document.
6. Click Save and Next.
7. Click Finish to confirm checking the document.
The agreement document with redlines is checked into Salesforce. A new version of the agreement document is created and is available in the Agreement Documents section.
Click Redline AI for the checked-in document.
Redline AI displays the risks associated with this document.
On the Risk Summary tab, the summary is displayed in two sections.
- Contract Risk Summary: This section provides an overview of the potential risks that arise from the modifications made to the contract text. It identifies specific clauses or changes that could pose legal, financial, or operational risks to the parties involved. The summary helps stakeholders quickly understand the areas of concern and the nature of the risks.
- Contract Mitigation Summary: This section offers strategies and recommendations to minimize or eliminate the identified risks. It suggests practical steps that can be taken to address the issues highlighted in the Contract Risk Summary. These might include revising certain clauses, adding new provisions, or implementing specific actions to safeguard against potential problems.
On the Items at Risk tab, you can view the following.
Visible Features
- Count of risk items in different categories
- Risks by clause, listing clauses not in compliance with the standard clause.
User Actions
- In the "Risks By Clause" section, click the clauses arrow to view the risk category (for example, Financial, Operational) and description, with risks shown in order of severity: high, medium, and low.
- Click the risk description of a clause to display the standard clause and AI mitigation guidance.
  Tip:
  AI mitigation guidance refers to the recommendations provided by Redline AI to help reduce or manage risks identified in a contract. When you click on a clause, the AI compares it with standard clauses and highlights any potential risks. It then offers specific strategies or actions to mitigate these risks, ensuring the contract remains balanced and protects your interests. This guidance helps you address issues proactively and make informed decisions during negotiations.
Choose an option from Choose from Action and click Done.
- Revert to standard clause: Discard all changes and return to the standard clause.
- Keep: Retain the current clause, whether it is the redlined (modified) version or the standard (original) version. No changes are made.
- Modify: Provide new text specifically for the parts of the clause identified as risky. The AI replaces only the text causing the risk, not the entire clause. For example, if the phrase "No Warranty" is problematic, only that phrase is replaced.
  After you have taken action for the clause, click Done.
The clause is moved to the Items to be Published tab.
On the Items to be Published tab, the list of clauses you modified in the Items at Risk tab is displayed.
1. Review the risk description, response, and modified text. You can either click Undo to revert the modification, return the risk to its original state, and move the clauses to the Items at Risk tab. (or) click Edit to change your action.
2. Once you have reviewed the clauses in the Items to be Published tab, click Preview to verify that the modifications done are reflected in the previewed document. Click DOWNLOAD to download the previewed contract document.
  
  Note: The redlines are not displayed in the preview document.
3. To publish the changes, click Publish Changes, select whether to publish with or without redlines and then click SUBMIT.

You are navigated to the agreement's Details tab. The Agreement Clauses section displays the clauses you modified, with the Action status updated from Original to Modified.

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Agreement Risk Analysis using Redline AI

Launching Redline AI

Viewing Agreement Risk Analysis

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