Contract Management By The Numbers: The End of Manual Contract Review
With new contract management software solutions on the rise, a legal digital transformation is currently underway.
Businesses in the legal sector that adopt them are already ahead of the game, while others simply need to keep up with the competition in order to minimize the risk down the road.
We compiled a list of important statistics surrounding the adoption of AI-based contract management software, especially. They show the impact of artificial intelligence on the legal industry, especially when organizations decide to change their contract management process altogether.
HOW MUCH TIME AND MONEY IS WASTED ON MANUAL CONTRACT REVIEW?
Research shows that manual contract review costs businesses plenty of time and revenue. That’s because it takes an average of 92 minutes to review a single contract. And a company can have anywhere between 20,000 and 40,000 active contracts at any given time, according to Pricewater Coopers. Invariably, this is tedious work and, therefore, prone to human error in the absence of proper contract lifecycle management (CLM). In fact, more than 9 percent of annual revenue is lost due to poor CLM, according to IACCM.
It is said that organizations that adapt to new technologies, such as CLM software, will ultimately succeed. Those that stick to manual review, on the other hand, will slowly fall behind.
THE FUTURE OF AI IN CONTRACT MANAGEMENT
Generally speaking, contract management software aids contract review partly by keeping all contracts in one central storage system. Such software, with artificial intelligence integrated into it, can do even more. The AI filters out dates and important terms quickly and efficiently, as well as recognizes patterns, etc.
In addition to boosting business’ productivity, AI-based contract management software frees up in-house counsels and legal teams. It allows them to focus on other challenging tasks that previously lacked attention due to time spent on manual review. Ultimately, the adoption of AI-based solutions by legal professionals reduces manual contract review by 50 percent, according to the latest research.
THE EVOLUTION OF CONTRACT MANAGEMENT
Contract lifecycle management has certainly evolved over time, with new software and systems developed every year. Using technology for your contract management and having contracts stored in a central repository go a long way toward proper organization and productivity – for both general counsels and legal teams. And contract management software is only becoming more popular by the day. The numbers don’t lie!
If you’re interested in contract lifecycle management with artificial intelligence, check out our Contract Management Primer. ContractPodAi, the world’s fastest-growing software solution. Request a demo and consultation from us, and begin your digital transformation today!
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