The Power of Intelligent CLM: Leveraging AI to Optimize Contract Management By Onit January 25, 2023 Business Process Management,Contract Lifecycle Management 5 Minute Read Intelligent new CLM solutions optimize the contract management process by eliminating siloed business practices, unlocking maximum contract portfolio value, and driving efficiency, cost-effectiveness, and compliance. So what is your team waiting for? It’s time to lead the legal tech evolution, which begins with AI. Technology has become essential in how we work — and contract lifecycle management (CLM) is no exception. Yet not all CLM solutions are created equal. With recent studies revealing that legal, sales and procurement teams can spend as much as 65% of their time on administrative contracting tasks, it is more urgent than ever to find a solution that can automate contract activity, control legal spend, and improve compliance. An intelligent CLM solution makes your work flow trailblazing, reducing time spent on contracts, highlighting portfolio value, and transforming collaboration between teams. Here is how AI-powered CLM can solve three top challenges of contract management so that you can get back to doing what you do best – cultivating meaningful partnerships, negotiating forward-thinking deals, and igniting colossal revenue impact. Pain point: Contract review demands an inordinate amount of company time. SOLUTION: Intelligent CLM is a proven powerhouse at identifying common delays and information silos. With an intuitive user interface (UI) and the ability to report on all things contracting, it uncovers patterns that human professionals might not accurately quantify, such as average time spent per contract type and how long a contract has been in the “hands” of each department. AI-powered CLM can even provide data visibility into specific languages and terms. The truth is, if you must create a particular type of contract once, you’ll likely have to do it again (and again). Developing a playbook with up-to-date, purpose-built document templates enables sales teams to generate contracts and finalize non-disclosure agreements (NDAs) and quotes using predefined language, so signing every new client doesn’t necessarily require the legal team to step in. Utilizing a clause library with a modernized digital dashboard can reveal how specific clauses are used and modified by breaking contracts into constituent clauses and autonomously extracting key data points. Because AI comprehends the contract in context, it can recognize clauses and keywords, define new opportunities, and evaluate risks for actionable decision-making — slashing delays and inconsistencies, shrinking cycle times by up to 20%, and speeding time to revenue by up to 24%. Pain point: Contracts often feel overwhelmingly complex and risky. SOLUTION: Contracts can indeed be complex (why else do so many fast-forward to “I accept,” ignoring the fine print?). Of course, they are complex for several valid reasons: the relationships, deals, and terms they cover and protect can be challenging, and the legal department exists to mitigate risk. However, intelligent CLM can diminish much of this complexity, translating “legalese” into plain language and enabling legal, sales, and procurement teams to initiate standardized new contracts in compliance with all business policies, as well as offering insights into top-performing vendors and negotiated price breaks. Taking it even further, intelligent CLM can advance operational effectiveness, cost efficiency, and transparency. When combined with a risk analysis dashboard, CLM software streamlines business processes, leverages AI to assess low, medium, and high-risk contracts, and automatically calculates risk scores for each. Pain point: The contract portfolio is losing value. SOLUTION: While revenue leakage can occur at any stage of the contracting process, it tends to happen most frequently during contract creation and post-execution management. That said, intelligent CLM can eliminate revenue leakage at every stage. Not only does CLM with AI accelerate automated renewal productivity by 5%, but it can reduce liability and improve compliance from the time contracts are negotiated. It can also mitigate fees and fines due to missed deadlines and renewal dates on the back end via tracking obligations like milestones and payments. System integrations that allow departments to sync lead data and initiate the creation of NDAs and master service agreements (MSAs), requisitions, purchase orders, and invoices also capitalize on portfolio value, eliminating the need for expensive custom work. Additionally, they lessen siloed contract management by providing a holistic view of supplier relationships while elevating end-to-end contract collaboration — saving up to 9% annually per contract and 33% in legal spend overall. CLM with AI: Tomorrow’s tech, here today There is empowerment in transformation. Intelligent CLM utilizes the best in AI to support the entire contract lifecycle, from document generation to signature (and beyond), with advanced analytics, self-service platform methodology, and impeccable regulatory compliance. The future of Legal means more than just unlocking the latest in technology. Embracing the latest tech will provide modern digitalization, optimized workflows, and requisite collaboration to prove that Legal is more than just a compliance and risk regulator. Legal is equipped to grow your business materially and continue evolving today, tomorrow, and for future generations. Learn how Onit’s next-generation CLM solutions and AI-powered innovations meet you where you work with end-to-end automation of the contract management process to cultivate partnerships, elevate efficiency, and ignite revenue growth for enterprise-wide success. Today's Popular Post Business Process Management OnitX Legal Holds Management: An Easier Path Through a Challenging Trail Read More Business Process Management Powering Scalable and Rapid Integrations: Onit’s Partnership with Workato Read More Artificial Intelligence Introducing Onit Catalyst – Upping the AI Game for ELM and CLM Read More Subscribe Today Sign up for updates on new posts from our blog. Related Readings Business Process Management OnitX Legal Holds Management: An Easier Path Through a Challenging Trail Read More Business Process Management Powering Scalable and Rapid Integrations: Onit’s Partnership with Workato Read More Artificial Intelligence Introducing Onit Catalyst – Upping the AI Game for ELM and CLM Read More Thank you for subscribing!