It's important that you can understand Familiarity, so that you can trust it.
What IS Familiarity?
Our Familiarity feature provides an additional layer of review, on top of any policy configured for the deal type. It conducts a clause by clause assessment of the contract wording, which categorises 'familiarity' of the drafting by reference to templates and previously signed contracts. It DOES NOT assess the familiarity of values within the contract.
Enabling the Familiarity feature
For our AI to work, you must enable the feature.
Assessing Familiarity
Familiarity is assessed based on the deal type in which the given contract has been uploaded to.
In order to assess Familiarity of language, we look at two things:
- The language in the template(s) contract(s) for the deal type; and
- The language in the signed contract archive for the deal type.
Our AI uses a text embedding to quickly and accurately compare language between clauses, allowing you to see how common each clause is within a deal type, and helping to inform you about the overall risk profile of a clause, and therefore, how to progress your negotiation.
Familiarity Levels
Our AI identifies 4 levels of Familiarity:
Never Seen Before
If a clause is labelled as 'Never Seen Before' then there are no signed contracts in that deal type which contain a clause with similar wording.
Uncommon
This means that similar wording to this clause can be seen in between 1-19% of signed contracts in that deal type.
Common
Clauses labelled as 'Common' have similar wording to clauses in between 20 - 99% of signed contracts for that deal type.
Standard
If a clause is labelled as 'Standard' then it is a 100% match to the template paragraph wording.
NOTE: It's important to note that the Familiarity values displayed on a contract are fixed and won't change when more signed contracts are added to the archive, or when new templates are added to the system. The values will only update when the contract being reviewed is reanalyzed.