- May 9, 2024
- 15 min read
- Ajay Agrawal
Introduction
Hello! I’m Ajay Agrawal, the CEO and founder of Sirion. Over the years, our team at Sirion has been deeply involved in redefining the landscape of contract lifecycle management (CLM). In the past, the focus in CLM was heavily skewed toward the administrative tasks of storing and creating contracts — functions that were considered foundational, yet fundamentally low-tech. This approach, however, scarcely scratched the surface of what modern businesses need from their contract management systems.
Paradigm Shift in Contract Management
When we first conceived Sirion, the industry’s emphasis was on the mechanics of contract management — how to store them, how to draft them efficiently, and how to organize vast repositories of documents. However, we recognized early on that these were not the primary issues enterprises faced. The biggest challenge was extracting tangible value from each contract over its lifecycle, which often spans several years. The creation of a contract is just the beginning — it’s the insights, foresight, and ongoing management that truly dictate its value to the business.
Limitations of Traditional Systems
Consider this: a contract may take up to six months to negotiate and finalize, but its terms will govern the relationship between the parties for years. Some traditional CLM systems were adept at managing the initial phases of this process — drafting and storage — but they fell short in their capacity to manage the dynamic, complex nature of contracts during the actual life of the agreement. This realization was pivotal; it guided our strategic direction toward a solution that wasn’t just about document management, but about contract intelligence and lifecycle enhancement.
Why AI-Native?
To truly serve the needs of modern enterprises, we realized that we needed contract intelligence at the core of our CLM platform. It wouldn’t suffice to add AI as a supplementary feature after the fact; we knew that we needed to embed it deep within the architecture of our solution — making it AI-native. This approach ensures that every functionality of our platform, from risk assessment to compliance monitoring, is inherently enhanced by AI.
In an AI-native system such as Sirion, the AI component is crucial; without it, the system’s core functionalities cannot operate. This is distinctly different from AI-infused systems, where AI is bolted on to enhance existing features that can still work independently of AI (albeit less effectively). In our case, AI is not just an enhancement — it is indispensable.
Operational Impact of AI-Native CLM
By building our platform on AI, we enable Sirion to anticipate customers’ needs and adapt dynamically. This adaptability transforms both how teams create contracts, and how they manage contracts post-signature. Our platform analyzes contract performance in real time, offers predictive insights, and helps teams proactively manage renewals and compliance. This level of active management is not possible with traditional or even AI-infused systems, where the role of AI is limited and non-critical.
The shift to AI-native CLM is more than a technological upgrade. It is a fundamental rethinking of what it means to manage contracts effectively in a modern enterprise. Contracts are living, breathing documents that can offer immense strategic value when managed with the right tools. We’re transforming how businesses understand and leverage their contracts for maximum strategic advantage.
At Sirion, we are not just keeping up with technology trends or adapting to changes in the market — we are anticipating, defining, and shaping these changes, ensuring that our customers are always ahead of the curve. As we continue to innovate and lead in this space, our focus remains steadfast on delivering solutions that not only meet, but exceed the evolving expectations of our customers, empowering them with the tools to turn contracts into strategic business assets.
Additional Resources
What is Contract Data Extraction: 5 Key Steps to Implement it
Five AI Capabilities for CLM You Need to Know
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