The Benefits of CLM Automation
With today’s complex business environment, effective management of contracts and legal matters (CLM) is essential for ensuring success. But increasingly, companies face the challenge of shortages in staff and heavy workloads. A survey of legal professionals across 400 organizations revealed a large discrepancy: while only 30% of respondents had adopted automated CLM technologies, those with automated CLM processes experienced several benefits, including better security, efficiency, productivity and focus.
Automation drastically reduces the amount of time spent on executing CLM processes. On average, automated CLM teams report a 50% reduction in delays caused by staff shortages and heavy workloads, as well as a 75% decrease in the likelihood of contractual obligations being missed. These time savings, resulting from a more efficient contract process, can translate into greater cost savings for the company.
The potential impact of automation is not limited to CLM. As contract lifecycle data is integrated throughout an organization, visibility into the contract process and performance indicators is improved. Automated CLM processes allow for better tracking and management of data, enabling companies to make better decisions and operate more efficiently. Additionally, automation ensures organizations remain compliant with society and industry standards.
The survey’s findings demonstrate that while only 30% of respondents have adopted automated CLM processes, the potential for time and cost savings is still untapped. By integrating automated CLM technologies, such as generative AI, companies have the opportunity to revolutionize their CLM processes and benefit the whole organization. Doing so will help streamline the contract lifecycle, ensure better tracking of data, and improve performance and productivity.
The Takeaway
The survey’s findings underscore the importance of automating CLM processes. Companies who lagged behind in their CLM maturity are presented with an opportunity to embrace automated CLM technologies and reap the benefits of better security, efficiency, productivity and focus. With automated CLM processes, companies can experience a 50% reduction in delays caused by staff shortages and heavy workloads, and a 75% decrease in the likelihood of contractual obligations being missed. Moreover, including generative AI in CLM processes provides an added layer of complexity, sophistication, and automation that can help streamline the contract lifecycle, ensure better data tracking and management, and improve performance and productivity.