Automating Contract Clause Extraction in SharePoint using AI Builder
Smart Contract Management with SharePoint and Power Platform AI
Stop hunting through PDFs manually. Let AI Builder extract contract obligations, expiry conditions, penalties, and more - directly into Dataverse or SharePoint metadata.
Why automate clause extraction?
Most organizations store hundreds - sometimes thousands - of contracts across SharePoint libraries. When someone asks:
“When does this contract expire?”
“Is early termination allowed?”
“What are the liability caps with Vendor X?”
…someone has to open the PDF, scroll endlessly, and copy/paste the answer.
This leads to:
Delays in approvals and renewals
High legal and financial risk
Low visibility of compliance status
Time-consuming manual data entry
What AI Builder Custom Document Models can do
With a Custom Document Processing model in AI Builder, you can automatically extract:
Contract start and end dates
Termination & renewal clauses
Liability and penalty sections
Payment terms
Signatory and counterparty details
Extracted data flows into:
SharePoint columns for search & filtering
Dataverse tables for automation and reporting
Power BI dashboards for governance insights
Architecture Overview
SharePoint Contract Library
→ (Trigger: File Added/Updated)
Power Automate Flow
→ (Call AI Builder Model)
→ Dataverse/SharePoint Metadata Update
→ Teams / Outlook Notifications
→ Power BI Visibility Across Contract Portfolio
Implementation Guide
1️⃣ Prepare your training documents
Gather 5–20 sample contracts that include the clauses you want AI to extract.
Recommended field types:
Field Examples Text Termination clause, Payment terms Date Effective date, Expiry date Checkbox Auto-renew enabled Table Billing schedules
Tip: Use diverse vendor templates for better accuracy.
2️⃣ Train your AI Builder model
Inside Power Apps → AI Models → Document processing:
Upload sample PDFs
Tag relevant fields by selecting text on the page
Train → Evaluate accuracy → Publish for use in flows
Use confidence thresholds to trigger manual review when unsure.
3️⃣ Build the automation flow
Trigger: File added to a specific SharePoint library.
Common Flow actions:
Get file content
Use AI Builder to extract fields
Update Dataverse or SharePoint metadata
Notify contract owner if:
Mandatory fields missing
Expiry < 90 days
High-risk clause detected
This creates “human-in-the-loop” compliance.
4️⃣ Create contract governance dashboards
Use Power BI to visualize:
Expiry timelines
Vendor exposure
Risk scoring by contract type
Contracts missing critical clauses
Good dashboards quickly show what needs attention.
Business Impact
Metric Before After Time to review 1 contract 20+ min < 2 min Governance visibility Limited Portfolio-wide Manual errors Frequent Minimal Renewal penalties Possible Preventable
A mid-sized company can save hundreds of hours annually while reducing legal risk.
Advanced Enhancements
Use Azure OpenAI to compare contract versions
Auto-classify document type: MSA vs NDA vs SOW
Extract obligation owners + auto-create Planner tasks
Multi-language model training for global teams
This evolves into a contract intelligence system, not just OCR.
Security & Compliance
Apply DLP policies to protect legal documents
Restrict access with role-based permissions
Enable audit logs and SharePoint versioning
Encrypt files at rest + in transit
Enterprise-grade protections without complexity.
Final Thoughts
Contract intelligence shouldn’t require hours of searching and extracting data. With:
AI Builder
Power Automate
Dataverse
Power BI
…your contracts become searchable, auditable, and action-ready.
Move from reactive contract tracking → proactive risk management.
