Unveiling the Future: Generative AI Reshaping Contract Management

Experts estimate that 23% of global jobs will change in the next five years due to GenAI — proof that integrating Generative AI into Contract Lifecycle Management systems will be pivotal for organizations! This webinar highlighted how GenAI will change the role of in-house counsels and legal operations teams. 

Here are the key takeaways: 

Embracing the Evolution 

GenAI is not merely a tool but a paradigm shift driving operational efficiency and risk mitigation in CLM. Automating mundane tasks empowers legal teams to assume more strategic roles, leveraging data-driven insights for informed decision-making.  

GenAI Myths Debunked 

We’re only beginning to scratch the surface of GenAI’s application, but don’t let the hype fool you! It’s important to understand GenAI’s current capabilities. The questions we addressed: 

• Will GenAI replace lawyers? No, but lawyers leveraging AI will outpace those who don’t. Lawyers should let AI contract data empower them, allowing AI to automate the day-to-day while keeping human oversight intact.  
• Should organizations develop mature contracting processes before investing in GenAI? Surprisingly, organizations at varying maturity stages can benefit from GenAI. Organizations don’t necessarily need advanced capabilities to get started; instead, companies should be fostering collaborative teamwork and working intentionally to align data to policies.
• Is there a single out-of-the-box Large Language Model (LLM) sufficient for all CLM use cases? While studies have shown that various models excel in certain areas, no singular LLM is sufficient for CLM. Instead, an intelligent CLM solution should leverage a multi-LLM approach trained with curated data sets to develop nuanced understanding and insights.  
• Isn’t data security impossible to manage with GenAI? With the right architecture and model selection, you can effectively manage data security. Transparency regarding data usage and flows is essential for maintaining security and trust. 

Learn more about GenAI Myths vs. Reality here. 

Harnessing the Potential 

By integrating GenAI into existing workflows and augmenting human expertise, legal teams can enhance efficiency and drive impactful outcomes. We talked about several use cases for this in the webinar, including:  

• Automated Risk Assessment – GenAI helps with contract risk assessment by evaluating contract data across your entire portfolio, reviewing for compliance, and flagging missing or unfavorable clauses. It can also generate comprehensive risk scores, empowering informed decision-making and effective risk management strategies.

Watch the full webinar to learn about other contract AI use cases like auto-redlining and chat-based search. 

Navigating the Journey 

A strategic approach to GenAI adoption is crucial. From data security to vendor selection, meticulous assessment of an AI CLM’s claims are imperative. By scrutinizing vendor experience, understanding model transparency, and evaluating roadmap alignment, organizations can navigate this landscape effectively. 

Additionally, when an organization invests in education, assesses existing infrastructure, and fosters a culture of innovation, every team across an organization can work together to use GenAI to get the most value out of their contracts. 

Be sure to watch the full webinar to learn the exact steps for integrating contract AI into your legal operations. Or reach out and we’ll walk you through it one-on-one.