Smart Contract Analysis: Corporate Risk Management with AI
For corporate legal departments and lawyers, contract review is one of the most critical and time-consuming tasks. Hidden risks in contracts to be signed before a transaction or partnership can cause millions in damages for your company or client. Lextum AI's Smart Contract Analysis feature detects these risks in seconds, providing proactive legal protection.
Challenges in Corporate Contract Management
1. Volume and Complexity
Large companies sign hundreds or even thousands of contracts per year. Finding sufficient resources to review each in detail is difficult.
2. Non-Standard Clauses
In contracts based on the counterparty's template, clauses specifically placed against your company can be overlooked.
3. Regulatory Compliance
Compliance with regulatory requirements in areas like GDPR, Competition Law, and Consumer Law requires constant attention.
4. Version Control
Tracking which clause was changed when and by whom during negotiation processes becomes difficult.
How Does Lextum AI Contract Analysis Work?
Step 1: Upload the Contract
Upload PDF, Word, or scanned documents (with OCR support) to the platform.
Step 2: Specify Company Role
Select your client's or company's role in the contract: Seller, Buyer, Lessor, Tenant, Employer, Service Recipient, etc.
Step 3: AI Analysis
The AI scans the contract in seconds and detects:
🔴 High-Risk Clauses (Red):
Unilateral termination rights
Unlimited liability provisions
Ambiguous penalty clauses
Potentially unlawful provisions
🟡 Medium-Risk Clauses (Yellow):
Ambiguous expressions ("reasonable time," "appropriate price")
Provisions requiring broad interpretation
Unbalanced obligation distributions
🟢 Standard/Favorable Clauses (Green):
Generally accepted standard provisions
Protective clauses in favor of the company
Step 4: Favorable Change Suggestions
For each risky clause, provides concrete suggestions on how to change it in favor of your company. Apply these suggestions to the contract text with a single click.
Detected Risk Categories
1. Unilateral Authority and Rights
"The seller reserves the right to change the price unilaterally."
Risk: You lose control over price, a fundamental element of the contract.
Suggestion: "Price changes are subject to the written agreement of the parties."
2. Liability Limitations
"The service provider cannot be held responsible for any damages."
Risk: You cannot recover damages from poor service quality.
Suggestion: "The service provider's liability is limited to X times the contract price."
Corporate Compliance Check
Lextum AI analyzes contracts not only for commercial risks but also for regulatory compliance:
GDPR/KVKK Compliance: Are personal data processing provisions adequate?
Competition Law: Are there any anti-competitive clauses?
Consumer Law: Does it contain unfair terms against consumers?
Conclusion
Smart Contract Analysis enables the transition from reactive legal review to proactive risk management. Becoming an indispensable tool for corporate legal departments, procurement units, and lawyers, Lextum AI maximizes operational efficiency while increasing companies' legal security.
