Contract Parsing with AI
Contract Parsing with AI
Learn how AI contract parsing reduces revenue leakage, speeds up billing, and improves compliance.
The Contract Problem
In many finance teams, contracts live in PDFs and filing cabinets. Extracting payment terms, renewal clauses, and penalties is manual, slow, and prone to human error.
The Revenue Risk
IDC estimates that 20–30% of potential revenue leakage is due to missed or misunderstood contractual terms.
How AI Contract Parsing Works
- Uses Natural Language Processing (NLP) to read unstructured documents.
- Identifies key clauses: payment schedules, SLAs, discounts, penalties.
- Feeds structured data into ERP for invoicing and compliance tracking.
Case Study Snapshot: JTB
JTB automated contract term extraction using TechFarben’s AI Agents, cutting vendor dispute resolution time by 60% and reducing delayed billings by 45%.