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“The global contract management software market is expected to grow from USD 1,550 million in 2019 to USD 2,917 million by 2024, at a CAGR[1] of 13.5% during the forecast period.” – Research and Markets Report[2]
The AI market growth trajectory makes a strong case for legal departments to force the pace of implementing the adoption of AI solutions if they no longer want to be considered as cost centers.
Since efficiency is the foremost goal of corporate law departments, use of AI to transform contract management and operations is the key.
Paucity of time to manage clients’ contractual obligations oftentimes leads to lagging sales cycles, unmitigated risks, and many more problems for the business.
The International Association for Contract & Commercial Management has estimated that inefficient contracting causes organizations to lose more than 9.2% of their annual revenue. This probably stems from the fact that 80% of U.S. civil litigation is related to contracts and one-third of corporate profits are spent on these cases. Furthermore, when contracts are mismanaged as a result of poor governance, it can cost a company 5% to 15% of the contract’s overall value.[3]
This begs the question, why are the legal departments often slow to implement the adoption of AI solutions? What are the main challenges that firms face in getting on the AI bandwagon?
Challenges faced by the law departments in using AI solutions
The process of transitioning from an existing contract management system to a new tech-ecosystem can be daunting. The biggest roadblock being the sheer volume of the contracts. To populate results on contract management software these contracts require tracking and labelling of the unstructured text in a host of these contracts so they can be optimally organized, managed, and updated.
How the Virtual Contract Manager can lend a hand
LegalEase’s Virtual Contract Manager Services can help legal departments and in-house counsel incorporate the latest software to provide a systematic and efficient contract management solution from beginning to end.
Here’s what each service entails:
Contract Tagging and Review. Tags contracts for specific terms that do not populate through AI. This enables the end customer save time by not having to allocate resources to tag and review contracts.
Contract Labelling. We make it a great client experience by helping label the contracts in the repository as soon as they are ingested.
Clause Library Creation and Management. We draft the variants for different clauses in the contracts. The clause variants are reviewed and validated at regular intervals or whenever required to adapt to the changing business environment and customer requirements.
Contract Protocol. We work with your team to develop a detailed protocol for review of contracts.
Validation of auto populated terms. We perform a quick spot check and validate the terms that are auto populated to confirm there are no issues.
Post onboarding support. We provide round the clock support to our clients and help clarify any concepts, workflows; set up reminders and review of terms.
Automating these rote processes with the help of our Virtual Contract Manager Services guarantees secure and efficient handling of documents while also ensuring substantial cost savings.
At LegalEase we have our eyes on the future and constantly keep ourselves educated on the nuances of legal-tech, its risks, and rewards. LegalEase Solutions is a legal services provider offering corporate legal departments and law firms innovative support with their contract lifecycle management, compliance, document review, legal intelligence, on-demand legal operations, and legal research and writing. LegalEase works with leading contract management technology that enables control over the contract universe, reduces susceptibility to risks and penalties, optimizes spend, and improves inter-departmental decision making. If you’d like to optimize your legal functions, feel free to reach out to us. Our team of expert attorneys would be happy to help you make your way through the legal-tech jungle. We are available at contact@legaleasesolutions.com.
LegalEase Vision
Increase transparency and control for all stakeholders within legal departments and consequently for the entire department.
[1] Compound annual growth rate
[2] The “Contract Management Software Market by Component (Software and Services), Business Function (Legal, Sales, Procurement, and Finance), Deployment Type (On-premises and Cloud), Organization Size, Vertical, and Region – Global Forecast to 2024”; Oct 25, 2019, https://www.prnewswire.com/news-releases/contract-management-software-market—global-forecast-to-2024-300945527.html
[3] INSIGHT: AI-Powered Contracts Can Help Legal Departments Avoid Pitfalls, Oct. 24, 2019, https://news.bloomberglaw.com/tech-and-telecom-law/insight-ai-powered-contracts-can-help-legal-departments-avoid-pitfalls
