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Using Redline Agent for Risk Assessment

Redline Agent is an AI-powered risk analysis feature within the Contract AI package for X-Author for Contracts Advanced. It helps you identify, assess, and respond to risks introduced by counterparty changes during contract negotiation.

When a counterparty modifies an agreement, for example, by increasing a liability cap, adding indirect liability provisions, or altering payment terms, the Redline Agent compares the modified clauses against your organization's pre-approved standard versions & playbooks and provides risk assessment alongwith mitigation guidance.

When you execute a playbook, Redline Agent analyzes the contract and evaluates its content against the configured clause-level and document-level rules. For rules that identify non-compliant, missing, or potentially risky content, Redline Agent provides suggested revisions or recommended clause language.

When a clause rule exists and the corresponding clause content is present in the document but is not marked, X-Author for Contracts Advanced automatically links the clause content to the matching playbook rule. This enables you to review the clause directly from the associated rule and replace it with a Redline Agent recommendation, standard clause, or alternate clause.

You can use Redline Agent to:

  • Review content that does not meet the requirements defined in a playbook rule.
  • Compare the suggested revision with the existing contract language.
  • Apply, modify, or ignore suggested revisions.
  • Review standard or alternate clause text from the Clause Library when a rule is associated with a Clause Library clause.
  • Insert Clause Library content for rules where the required content is not found in the contract.

The results of the review are displayed in the Contracts pane. Each rule includes information about the assessment result and, where applicable, a suggested revision. You can review the details for each rule and decide whether to update the contract based on the recommendation.

Redline Agent suggestions do not automatically modify the contract. You must review and apply any suggested changes before they are incorporated into the document.

Before you can use Redline Agent, your administrator must configure playbooks with clause-level rules and document-level rules. For more information see, About Redline Agent.