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Getting Started with Legal Contract Management Software and AI

Legal contract management software can drastically streamline contract creation, review, execution and management – processes that are often fraught with complications and errors.

Data from the World Commerce & Contracting Association supports this idea. The organization recently surveyed its 70,000+ members about their contract challenges and priorities and found that 85% experience pressure for contract simplification. Another 81% said they have plans to implement contract automation. These points speak to the fact that poorly managed contracts lead to lost revenue, higher costs and more time devoted to manual tasks for all parties involved.

The Challenges of Contract Management

To understand the actual value of legal contract management software, it’s helpful to recap the inefficiencies associated with contract handling.

Manual processes open the door for errors and slow down overall contract execution. For example, approvals and negotiations done via email are often sluggish or overlooked. Untracked revisions can lead to confusion, conflict or non-compliance and a lack of standard legal language may result in lengthy review times or require lawyers to get involved.

Disparate repositories result in inefficient reporting and reduce contract visibility. Contracts spread out over different repositories, departments and geographical locations make monitoring corporate contracts holistically almost impossible. Without tracking expiring contracts and renewals, companies run the risk of compliance exposure as well as revenue loss.

Changes occur over the lifetime of a contract, including renewal dates, pricing, emerging legal requirements and other events. They require amendments and approvals from the contract parties. If these changes aren’t managed, implemented  and communicated correctly and quickly, organizations can increase compliance risks for themselves and all parties involved.

How Legal Contract Management Software Helps

Legal contract management software can reduce the average hours spent on contracts by 20%, accelerate review and save on costs. It does this by:

CLM + AI: What Is the AI Difference?

CLM centralizes contract storage and automates the request, creation, negotiation, execution and management of any type of contract.

When you combine AI with CLM, you can lower the number of contracts needing to be reviewed. This gives the reviewer the ability to speed up a review and provide consistency across processes. AI also significantly enhances contract management after execution by extracting and obtaining usable data from executed, legacy and third-party paper contracts.

AI and Legal Contract Management Software: What to Look For and How to Get Started

Not all CLM AI is created the same. To get the full benefits of contract lifecycle management solutions, you should carefully evaluate AI for both the pre- and post-signature phases of contract management.

If you’re not sure what to look for in an AI-powered CLM solution, we’ve got you covered.

We’ve prepared a Quick Start Guide that highlights the ideal legal contract AI features you need if you want to reduce inefficiencies, errors and time spent on contracts without sacrificing compliance or visibility. It also provides valuable expert tips to help you get started.

The guide includes information such as:

Download the guide today to discover how AI can enhance your legal contract management software, what to look for and how you can get started quickly.

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