Contract Lifecycle Management (CLM) is more than just one of this year’s hottest buzzwords. It’s a paradigm shift that is taking place across corporate legal departments at a rapid clip due to desired efficiency in manpower and profitability. Contracts form the basis for all commerce, representing risk as well as opportunity. Companies that use the right technology—particularly Artificial Intelligence (AI) systems—will have a significant advantage over their competitors, moving deals faster and more effectively through their sales pipeline. But when it comes to leveraging AI in the legal sector, where should a company begin?
What follows is a closer look at the various ways AI is used in the legal sector, the pros and cons of CLM software, and which stage of the contract lifecycle you should focus on first to gain quick ROI and make the case for digital transformation within your organization.
AI is applied in a number of ways to help legal teams modernize their workflows, including:
The question isn’t so much if you should incorporate AI in your legal department, but how.
A contract Lifecycle management system excels in its ability to assess post-execution data and help teams track the performance of their contracts. Another advantage is the ability to see the process from one end to another, identifying bottlenecks and strategic insights along the way.
But what many businesses don’t realize is that CLM software comes with a long, steep learning curve:
While the global market for CLM software is projected to continue growing from $1.5 billion in 2020 to $3.84 billion by 2026—and that is where legal departments are ultimately headed—the reality is that “all-in-one” CLM systems rarely perform in all areas effectively.
Consider the contract review and negotiation phase for example. Once a contract has been drafted, a junior-level lawyer typically combs through it to ensure it complies with the company’s playbook. Then, senior-level lawyers and third parties conduct a final review. Artificial intelligence and automation can be leveraged to redline contract drafts based, color-code potential risks, and add contextual suggestions, allowing the review process to be complete in a matter of minutes.
AI can help alleviate your contract burdens sooner rather than later.
LexCheck is an industry-leading platform that focuses on the pre-execution redlining, reviewing, and negotiating phases of contract management, which are the stages that typically absorb the most amount of time. Unlike the lengthy setup of CLM systems, LexCheck can be up and running in a matter of days to help businesses grow sales faster. Here’s how it works:
LexCheck can be used while your CLM software is still being put in place, thus providing a quick way to begin improving sales velocity. It also provides more robust functionality and support in the pre-execution phase of your contracts’ lifecycle. Whether you’re working in a large department that’s dealing with a substantial end-of-year backlog or tasked with handling contracts for a smaller company, it’s in your best interest to move contracts quickly as time kills all deals.
LexCheck’s AI addresses a number of common pain points by:
You can upload a contract draft by sending it to our system as an email. The finished draft is then returned to you in a matter of minutes, at which point staff can simply click to approve suggested edits or continue working on the contract.
Why wait years to see a return on your CLM investment when you could experience it within weeks after using LexCheck? Contact us at sales@lexcheck.com or download our 7 Steps to Optimize Your Contract Review Process to get started.