Corporate legal departments are increasingly relying on AI and other technologies like a CLM tool and automation to reduce costs, boost efficiency and better collaborate with other business units on contracts.
While many organizations have started to focus on how contract AI benefits the corporate legal department, the right CLM system offers advantages beyond legal to other contract stakeholders in your organization like sales and procurement. To explain how AI-powered CLM benefits all these different groups, we recently put together our handy Quick Start Guide: Contract AI: How it Pays Off for Corporate Legal, Sales and Procurement.
Here are just a few of the AI and CLM benefits covered in the Quick Start Guide.
Better Productivity and Insight for Legal with a CLM Tool and AI
A CLM tool powered by AI improves productivity by handling much of the scut work related to pre-signature contract review. AI manages the first-pass review, makes recommendations and delivers a risk profile. One study showed that new users of legal AI contract review software were immediately 51.5% more productive and 34% more efficient. When you multiply those gains across all the lawyers in an average midsized organization (55, according to this survey by the Corporate Legal Operations Consortium), it’s the equivalent of adding 28 lawyers to your team without actually increasing headcount.
AI-powered CLM tools are also transforming the legal ops role by standardizing and automating legal processes and creating a single point of truth for contract data. Contract AI empowers legal ops professionals to have better visibility into deals, keep drafting and negotiations on track, reduce risk and improve governance, accelerate turnaround time, cut costs and more.
Shorter Sales Cycles
Legal doesn’t have to serve as a black box for sales departments, where requests go in and responses come back with zero insight into progress or process. AI-powered CLM tools allow sales departments to break free from using disparate systems and instead operate in a single repository and workflow for all their contracts.
Inefficiency and lack of transparency are two of the biggest roadblocks for sales departments, and contract AI removes them. This allows sales professionals to close deals faster, automate contract requests, have real-time insights on active contracts, have access to the information they need when they need it, and engage in newfound levels of self-service.
Better Spend Management for Procurement
Much like it does for sales, the right AI-powered CLM tool serves as a single point of truth for all procurement activities across an enterprise. Procurement can’t function without contracts, and contract AI allows procurement to be flexible enough to tackle all the contract-related tasks essential to the procurement function.
Among other things, AI-powered CLM systems empower procurement professionals to improve business outcomes, decrease risk, manage spend against budget, have insight into contract negotiations and engage in self-service for routine contracts like NDAs.
For more insight into how AI and CLM are revolutionizing day-to-day business for legal, sales and procurement, you can download the complete Quick Start Guide for an AI-powered CLM tool here.