AI For Contracts

concord testimonial contract management software.
G2 - concord contract management
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The contract landscape is experiencing a fundamental transformation. With legal AI market value reaching $1.45 billion in 2024 and projected to grow at 17.3% annually, organizations face a critical inflection point. The question isn’t whether to adopt AI for contracts—it’s how quickly you can implement it to maintain competitive advantage.

The stakes are clear: 94% of procurement executives now use generative AI at least once a week, while 45% of Chief Legal Officers plan to invest in new technology solutions in 2024. For operations and procurement leaders managing hundreds of vendor contracts annually, the transformation potential is extraordinary.

The evolution of AI for contracts: From automation to intelligence

Understanding the AI paradigm shift

AI for legal contracts represents more than incremental improvement—it’s a fundamental reimagining of how organizations create, negotiate, and manage agreements. Unlike traditional contract management software that merely digitizes paper processes, AI actively learns, predicts, and recommends optimal contract strategies.

According to McKinsey’s 2025 workplace report, AI can “accelerate contract generation” and help organizations achieve transformative efficiency gains. This shift enables what industry experts call “superagency”—the amplification of human capabilities through intelligent automation.

The technology ecosystem powering modern contracts

Today’s AI contract software leverages multiple interconnected technologies to deliver unprecedented capabilities:

Technology Layer Capability Business Impact
Natural Language Processing Understands contract context and nuance 90% faster contract review
Machine Learning Learns from historical patterns 35% reduction in negotiation cycles
Predictive Analytics Forecasts outcomes and risks 40% fewer contract disputes
Computer Vision Processes diverse document formats 100% document compatibility
Knowledge Graphs Maps clause relationships 60% improvement in consistency

Quantifying the business impact: Beyond efficiency gains

Financial returns that demand attention

The financial case for contract management software AI has evolved from theoretical to proven. Recent research reveals compelling returns:

Operational transformation metrics

Beyond financial returns, AI contracting software delivers measurable operational improvements:

“Contract AI is a next-generation approach to CLM that empowers sales, procurement, legal, and other teams across the organization to gain full visibility into past and present contracts to track obligations, mitigate risk, and maximize the value potential of contracts,” notes Conga’s 2024 Contract AI Guide.

Strategic implementation: Building your AI contract ecosystem

Phase 1: Assessment and preparation (Weeks 1-3)

Begin your artificial intelligence in contract lifecycle management journey with comprehensive organizational assessment:

  1. Current state analysis
    • Document existing contract volumes and complexity
    • Map approval workflows and bottlenecks
    • Identify high-risk contract categories
    • Assess team readiness for change
  2. Success criteria definition
    • Set specific ROI targets (typically 3-6 month payback)
    • Define efficiency improvements (50-70% cycle time reduction)
    • Establish risk reduction goals
    • Create adoption metrics
  3. Data preparation
    • Audit existing contract repositories
    • Standardize naming conventions
    • Clean historical data
    • Identify integration requirements

Phase 2: Platform selection and pilot design (Weeks 4-6)

Selecting the right AI contract management software requires careful evaluation:

Essential evaluation criteria:

  • Proprietary AI models trained on legal contracts
  • Implementation timeline (days, not months)
  • Integration with existing systems
  • User experience and adoption features
  • Transparent pricing without hidden costs

According to Gartner’s 2024 predictions, half of procurement contract management will be AI-enabled by 2027, making platform selection critical for long-term success.

Phase 3: Deployment and optimization (Weeks 7-12)

Successful deployment of automated contract management software follows proven patterns:

  1. Start with high-volume, low-risk contracts
    • Non-disclosure agreements
    • Standard purchase orders
    • Service level agreements
    • Employment contracts
  2. Expand to complex use cases
    • Multi-party agreements
    • International contracts
    • High-value negotiations
    • Regulatory compliance documents
  3. Continuous improvement
    • Weekly performance reviews
    • Monthly user feedback sessions
    • Quarterly AI model refinement
    • Annual strategy reassessment

Maximizing AI capabilities across the contract lifecycle

Pre-signature excellence

Modern legal contract AI transforms pre-signature processes through:

Intelligent contract creation

  • AI-powered template recommendations
  • Dynamic clause libraries
  • Real-time compliance checking
  • AI contract summary generation for quick review

Advanced negotiation support

Accelerated review cycles

  • Parallel processing capabilities
  • Automated routing based on risk thresholds
  • Integration with approval systems
  • Real-time collaboration features

Post-signature intelligence

The value of AI extends throughout the contract lifecycle:

  • Obligation management: Automated tracking with predictive alerts
  • Performance monitoring: Real-time dashboards and scorecards
  • Renewal optimization: 90+ day advance notifications
  • Strategic insights: Portfolio-wide trend analysis

Industry-specific applications and transformations

Procurement contract revolution

For procurement teams, AI delivers transformative capabilities. According to Deloitte’s analysis, “Generative AI can help automate ‘create’ processes in source-to-pay, including creating documents (request for X, charters, contracts) or creating transactions (purchase orders, invoices).”

Procurement contract management software enhanced with AI enables:

  • Automated supplier risk assessment
  • Predictive pricing analysis
  • Compliance monitoring across jurisdictions
  • Performance-based contract optimization

Legal department transformation

Legal contract management software powered by AI fundamentally changes how in-house teams operate:

Strategic value creation

  • Shift from reactive to proactive legal support
  • Data-driven decision making
  • Predictive risk management
  • Enhanced business partnership

Operational excellence

  • 90% reduction in routine contract review time
  • Automated compliance monitoring
  • Seamless cross-functional collaboration
  • Demonstrable ROI through analytics

Healthcare contract complexity

Healthcare organizations face unique challenges that healthcare contract management software addresses through:

  • HIPAA-compliant data handling
  • Provider credentialing automation
  • Payer contract optimization
  • Regulatory change management

Overcoming implementation challenges

Technical and organizational obstacles

Despite clear benefits, organizations face predictable challenges when implementing contract automation software:

  1. Data quality concerns
    • Solution: Implement phased data cleansing
    • Use AI to standardize legacy contracts
    • Establish ongoing governance
  2. Change resistance
    • Solution: Start with willing early adopters
    • Showcase quick wins publicly
    • Provide comprehensive training
  3. Integration complexity
    • Solution: Choose platforms with pre-built connectors
    • Phase integrations by business impact
    • Maintain temporary manual bridges

Building an AI-ready culture

Success requires organizational transformation beyond technology. As Harvard Law expert David Wilkins notes, “Most lawyers I’ve talked to say that if you ask ChatGPT, let alone a more sophisticated version, to write a memo about a legal question, you will get something approximately as good as what a first-year law firm associate would produce.”

This reality demands:

  • Executive sponsorship and visible support
  • Regular training and capability building
  • Clear communication about AI augmentation, not replacement
  • Celebration of efficiency gains and wins

Advanced AI applications: The cutting edge

Generative AI in contract creation

The latest advancement in contract lifecycle management software leverages generative AI for:

  • First-draft contract generation from business requirements
  • Multi-language contract creation
  • Industry-specific clause recommendations
  • Dynamic risk-adjusted terms

Predictive analytics for strategic advantage

Advanced contract analytics software now provides:

  • Outcome prediction based on historical data
  • Optimal negotiation strategy recommendations
  • Market-based pricing intelligence
  • Relationship mapping across contract portfolios

AI agents: The next frontier

According to Microsoft’s 2025 AI trends, “Think of agents as the apps of the AI era. Just as we use different apps for various tasks, agents will begin to transform every business process, revolutionizing the way we work and manage our organizations.”

For contracts, this means:

  • Autonomous contract monitoring agents
  • Negotiation assistance agents
  • Compliance verification agents
  • Performance optimization agents

Measuring success: KPIs and continuous improvement

Essential performance metrics

Track these critical indicators to demonstrate value from your best contract lifecycle management software:

Metric Category Key Indicators Target Range
Efficiency Contract cycle time 50-70% reduction
Quality Error rates 80% decrease
Financial Cost per contract 35-40% savings
Risk Compliance violations 60% reduction
Adoption Active user percentage 85%+ within 6 months

Continuous optimization strategies

Leading organizations implement structured improvement processes:

  1. Monthly performance reviews
    • Analyze cycle time trends
    • Review error patterns
    • Assess user satisfaction
    • Identify optimization opportunities
  2. Quarterly model refinement
    • Update AI training data
    • Refine risk parameters
    • Expand automation scope
    • Enhance prediction accuracy
  3. Annual strategic planning
    • Benchmark against industry standards
    • Evaluate emerging technologies
    • Plan capability expansion
    • Align with business strategy

Future-proofing your contract strategy

Emerging trends reshaping contract management

Industry leaders predict transformative changes ahead. PwC’s 2025 AI predictions note: “In 2025, company leaders will no longer have the luxury of addressing AI governance inconsistently or in pockets of the business.”

Key trends include:

  • Multi-modal AI: Integration of text, voice, and visual contract analysis
  • Quantum computing: Enhanced processing for complex contract portfolios
  • Blockchain integration: Immutable contract execution and tracking
  • Edge AI: Local processing for enhanced security and speed

Preparing for the AI-driven future

Organizations must prepare for a fundamentally different contract landscape:

  1. Develop AI governance frameworks
    • Establish ethical guidelines
    • Create transparency requirements
    • Define human oversight protocols
    • Implement audit mechanisms
  2. Build adaptive capabilities
    • Train teams in AI collaboration
    • Develop prompt engineering skills
    • Create feedback loops
    • Foster innovation culture
  3. Strategic technology investments
    • Evaluate emerging platforms
    • Plan integration architectures
    • Budget for continuous improvement
    • Build vendor partnerships

Taking action: Your implementation roadmap

30-day quick start guide

Week 1-2: Foundation

  • Assemble cross-functional team
  • Document current contract processes
  • Identify pilot use cases
  • Define success metrics

Week 3-4: Evaluation

60-day deployment plan

Week 5-6: Selection

  • Complete platform evaluation
  • Negotiate implementation terms
  • Design pilot program
  • Prepare data migration

Week 7-8: Launch

  • Deploy pilot contracts
  • Train core users
  • Monitor performance
  • Gather feedback

90-day optimization strategy

Week 9-10: Expansion

Week 11-12: Excellence

  • Optimize AI models
  • Document best practices
  • Plan enterprise rollout
  • Calculate achieved ROI

Schedule a contract management software demo to accelerate your journey.

Real-world success patterns

Common implementation scenarios

Organizations typically see rapid returns in specific use cases:

High-volume standardized contracts

  • NDAs: 95% automation rate
  • Purchase orders: 85% straight-through processing
  • Employment agreements: 90% reduction in creation time
  • Service agreements: 75% faster approvals

Complex negotiated agreements

  • Master agreements: 60% cycle time reduction
  • License agreements: 70% fewer negotiation rounds
  • Partnership contracts: 50% risk reduction
  • International contracts: 80% compliance improvement

User testimonials and experiences

Real-world implementations demonstrate tangible benefits. According to G2 reviews of contract analytics software, users appreciate “the tool’s ability to automate internal processes, its user-friendly interface, and the excellent customer service.”

Common themes in user feedback:

  • Dramatic time savings on routine tasks
  • Improved accuracy and consistency
  • Better visibility into contract portfolios
  • Enhanced negotiation outcomes

Conclusion: The imperative for immediate action

The evidence is overwhelming: AI for contracts isn’t a future possibility—it’s today’s competitive necessity. With 75% of organizations expecting to implement AI-driven automation by 2025 and early adopters already realizing significant gains, the window for competitive advantage is narrowing rapidly.

Organizations implementing AI for contracts today position themselves to:

  • Reduce contract cycle times by 50-90%
  • Cut operational costs by 35% or more
  • Free up 4+ hours weekly for strategic work
  • Minimize compliance risks through automation
  • Transform contracts from cost centers to value drivers

The transformation extends beyond efficiency. As Cisco’s 2025 predictions note, “Success will be measured by how effectively these precision AI investments drive tangible business transformation, not by the size of the deployment.”

For operations and procurement leaders, the path forward is clear: embrace AI for contracts now or risk being left behind by competitors who are already transforming their contract operations. The technology exists, the ROI is proven, and the implementation path is clear.

Your contracts contain untapped potential. AI is the key to unlocking it. The question isn’t whether to adopt AI for contracts—it’s whether you’ll lead the transformation or struggle to catch up.

Frequently asked questions

What exactly is AI for contracts and how does it work?

AI for contracts uses advanced technologies like natural language processing and machine learning to automate and enhance every stage of the contract lifecycle. Unlike traditional software that simply stores documents, AI actively analyzes contract language, identifies risks, suggests optimal terms, and learns from your organization’s contracting patterns. It can review contracts in minutes rather than hours, extract key information automatically, and even predict negotiation outcomes based on historical data.

How quickly can we expect to see ROI from implementing AI for contracts?

Most organizations see measurable returns within 90 days of implementation. According to industry research, AI investments deliver an average return of 3.5X, with some companies reporting returns as high as 8X. Legal teams save an average of 4 hours per week, contract review times decrease by up to 90%, and operational costs drop by approximately 35%. Many modern platforms can be implemented in days rather than months, accelerating time to value.

What types of contracts benefit most from AI automation?

AI delivers value across all contract types, but certain categories see particularly dramatic improvements. High-volume standardized contracts like NDAs, purchase orders, and employment agreements can achieve 85-95% automation rates. Complex negotiated agreements such as master agreements, license agreements, and partnership contracts typically see 50-70% cycle time reductions. Even highly regulated contracts in healthcare, finance, and government benefit from AI’s compliance monitoring and risk detection capabilities.

How do we ensure successful adoption across our organization?

Successful adoption requires a strategic approach combining technology, process, and people. Start with high-volume, low-risk contracts to demonstrate quick wins. Provide comprehensive training tailored to different user groups. Create clear governance frameworks and approval workflows. Most importantly, position AI as augmenting human capabilities rather than replacing them. Organizations with daily AI users see 91% reporting productivity increases, compared to only 59% of occasional users.

What security and compliance considerations should we address?

AI for contracts must meet stringent security and compliance requirements. Look for platforms with SOC 2 certification, data encryption at rest and in transit, and role-based access controls. Ensure the AI model respects data privacy regulations like GDPR and industry-specific requirements like HIPAA. Many platforms now offer on-premises deployment options for highly sensitive contracts. Regular security audits and compliance monitoring should be part of your ongoing governance framework.

Bibliography

  1. Grand View Research – Legal AI Market Size, Share & Trends Report
  2. Thomson Reuters – How AI is transforming the legal profession
  3. Coolest Gadgets – 75+ AI In Legal Services Statistics and Facts
  4. McKinsey – Superagency in the workplace: AI’s full potential
  5. IBM – Companies Turning to Open-Source AI Tools to Unlock ROI
  6. Coherent Solutions – AI Development Cost and ROI
  7. Conga – Contract AI Definition and Benefits
  8. Gartner – Procurement Contract Management AI Predictions
  9. Deloitte – Generative AI in Sourcing and Procurement
  10. Harvard Law School – AI’s Legal Transformation
  11. Art of Procurement – State of AI in Procurement 2025
  12. Microsoft – 6 AI trends for 2025
  13. PwC – 2025 AI Business Predictions
  14. Cisco – AI Predictions for Enterprise Technology
  15. Miquido – AI Industry Predictions for 2025
PlatformStarting PriceImplementation TimeE-SignatureAI CapabilitiesUser Pricing ModelIntegration Strength
Concord$399/monthDaysBuilt-inAgreement IntelligencePer month⭐⭐⭐⭐⭐
ContractSafe$375/monthDays to weeksThrough integrationsBasic extractionContract volume (unlimited users)⭐⭐⭐⭐
ContractWorks$700-$2,000/monthWeeksLimited licensesBasic AIUnlimited users⭐⭐
Ironclad~$25,300/year3-6 monthsRequires integrationAdvanced playbooksEnterprise model⭐⭐⭐
AgiloftCustom quoteMonthsAvailableCustomizable AICustom⭐⭐⭐
DocuSign CLM~$39/month per featureWeeks to monthsNativeBasic extractionPer user⭐⭐⭐⭐
CobbleStoneCustom quoteWeeks to monthsEnterprise tier onlyVISDOM AICustom⭐⭐
LinkSquares~$10,000/yearWeeksSeparate module7-10 day processingCustom⭐⭐
ContractbookCustom quoteDays to weeksUnlimited includedLimitedCustom⭐⭐
ContractZen$9.50/month per userDaysIntegration (buggy)LimitedPer user
SpotDraftCustom quote1-6 weeksAvailableNLP-focusedCustom⭐⭐⭐⭐
EvisortCustom quote30+ daysAvailableAdvanced analysisCustom⭐⭐⭐
OutlawCustom quoteWeeksAvailableLimitedCustom⭐⭐⭐
Gatekeeper$995/monthWeeksAvailableLimitedFlat rate (unlimited users)⭐⭐⭐⭐⭐

About the Author

Ben Thomas - Content Manager at Concord

Ben Thomas

Content Manager

Ben Thomas brings 14+ years of experience in crafting technical articles and planning impactful digital strategies. His content expertise is grounded in his previous role as Senior Content Strategist at BTA, where he managed a global creative team and spearheaded omnichannel brand campaigns. Previously, his tenure as Senior Technical Editor at Pool & Spa News honed his skills in trade journalism and industry trend analysis.

Areas of Expertise:
  • Contract Lifecycle Management
  • Legal Technology
  • Content Strategy
  • Digital Marketing
  • Inbound Marketing

The problem Concord solves

Managing contracts is difficult because they can be scattered across different places: emails, cloud drives, personal drives, and even paper copies.

Many companies rely on spreadsheets to store contract details like lifecycle dates and total contract value, but these spreadsheets don’t provide a full view of the contract, and it’s tedious to keep updated.

When contracts are saved on personal drives, critical information—like renewal dates and deadlines—is hidden from the rest of the team. This can cause headaches for audits.

If a renewal date is missed, contracts may auto-renew without the chance to renegotiate terms, potentially locking the company into bad deals.

Worse, important contracts could expire without notice, leading to service disruptions, penalties, or lost business opportunities.

Concord solves these problems with its AI-powered full contract lifecycle management platform.

Before Concord

After Concord

Contract management before implementing Concord: scattered documents and missed deadlines
Contract management after implementing Concord: centralized system with automated workflows and alerts

One Place for all your Contracts

Unlimited storage

Store every contract, securely, without worrying about limits

Concord offers unlimited contract storage
Concord offers custom permissions for contract management

Custom permissions

Control who accesses each document with custom permission settings

Smart search

Find any contract instantly with powerful search and filtering tools

Concord provides an AI-powered smart search in its contract repository
Concord offers real-time collaboration for contract drafting

Real-time collaboration

Work together seamlessly with team members, regardless of location or department

Automate the contract lifecycle with contract lifecycle management software

Custom workflows

Set up unlimited approval workflows for every type of contract

Concord provides custom workflows for contract management
Concord automatically sets notifications and reminders for contract deadlines

Notifications and reminders

Never miss another renewal date or approval with smart alerts

Concord saves Sevita $5,000+ per month on auto-renewals

“Many hours saved, many dollars saved in contracts that we meant to terminate and forgot.”

Read the case study

Jennifer Neville
Associate Corporate General Counsel at Sevita

The Highest Level of Security for your Contracts

Concord's AICPA/SOC badge
Concord's GDPR certification badge
Concord's STAR Level One Badge
Concord's "powered by AWS" badge

Enterprise-grade Security

Concord implements enterprise-grade measures, including SOC 2 Type II certification, GDPR compliance, and a Star Level One rating from the Cloud Security Alliance.

Audit Trails

Track every interaction with contracts for complete transparency and accountability

Concord provides audit trails for contract management

Easily Connect to your Existing Stack

CRM Integration

Create contracts that auto-fill with data from your CRM deals – then share, negotiate, and sign them in Concord

Concord provides may CRM integrations, including Salesforce and HubSpot
Concord connects with 5,000+ apps, including Google Drive, Salesforce, HubSpot, Slack, and more

Zapier

Connect with over 5,000 apps to automate workflows across platforms

Frequently asked
questions

  • Does the platform integrate with Docusign?

    Concord’s DocuSign integration allows you to export your Concord documents to DocuSign and sign them from there.

  • Is the reporting feature customizable? Can we design our own dashboards?

    Yes, you can create reports such as # of docs by status per month, document status by month of creation, docs e-signed by Concord by month, etc.

  • What plans include SSO?

    Concord’s Enterprise plan includes the SSO feature.

  • Can I set up my own integrations with systems that concord does not support?

    Yes, you can set up other tool integrations with Concord using Zapier, webhooks, or API. Zapier alone allows integrating Concord with over 5000 applications.

  • Is there a trial or demo version available for testing?

    Yes, we offer a 14 day free trial.

  • Is our contract data used to train LLMs for the AI extract feature?

    We have a Zero Data Retention (ZDR) policy meaning contract and/or customer data is not used to train AI models.

Unlock the data in all your agreements.

Close deals faster. Surface financial insights. Accelerate revenue growth.

Finalize faster with a familiar UI

Sign, store, and track your agreements, all in one platform.

Boost financials with AI-powered search

Instantly surface the files you need. Get to value faster.

Start and scale with effortless adoption

Your whole team can start sending and signing in minutes.

Book your Concord demo