What is Contract Automation Software?
Concord’s contract software uses artificial intelligence and workflow automation to:
- Generate contracts from templates in minutes
- Route documents through approval workflows automatically
- Extract and analyze contract data with AI
- Send alerts for renewals and deadlines
- Integrate with CRM, ERP, and other business systems
Contract Automation Software Comparison
When evaluating contract automation solutions, it's important to understand key differentiators. The table below compares Concord's capabilities with industry alternatives:
The high cost of manual contract processes
The financial impact of inefficient contract management is substantial and often underestimated:
Businesses with 1,000+ employees spend between $2.5-$3.5 million annually searching for or recreating lost documents (Procurement Tactics, 2025)
Poor contract management can cost companies up to 9.2% of their annual revenue through ineffective processes and missed opportunities (Precisely, 2023)
The cost of manually creating and managing a single contract ranges from $6,900 for basic agreements to $49,000+ for complex contracts
Without effective automation, up to 40% of an employee's time is spent on low-value contract tasks, resulting in approximately $2.7 million in lost productivity annually
These statistics highlight why organizations across industries are prioritizing contract automation as a strategic initiative. By implementing intelligent software solutions, businesses can significantly reduce these costs while improving operational efficiency.
Key capabilities of modern contract automation software
Today's contract automation platforms offer comprehensive functionality that addresses the entire contract lifecycle:
1. AI-powered contract creation and analysis
Modern contract automation leverages artificial intelligence to streamline document creation and analysis. According to Gartner, AI is expected to cut manual labor in the contract review process by half in 2026. This technology enables:
Automated template selection based on contract type
Dynamic clause insertion tailored to specific requirements
Risk identification and flagging of problematic language
Extraction of key terms from existing contracts for analysis
The impact of this capability is substantial—AI can complete contract reviews in 26 seconds compared to 92 minutes for human reviewers, while outperforming trained lawyers by 10% in accuracy.
2. Streamlined workflow automation
Contract automation software implements defined approval workflows that route documents to appropriate stakeholders in sequence, ensuring proper review while eliminating manual handoffs. These workflows:
Reduce bottlenecks in the approval process
Provide real-time visibility into contract status
Automatically escalate delayed approvals
Create audit trails for compliance purposes
Jenny McMullen, Corporate Contract Administrator at Yates Construction, notes: "All messages and comments live right inside the agreement. Instead of five separate email chains, we've got everything in one place now." This centralized approach saved her organization $15,000 monthly in reduced administrative overhead—a 25% reduction in contract administration costs.
3. Centralized contract repository
A secure, searchable repository serves as a single source of truth for all contracts and related documents. This centralization:
Eliminates the need to search through email, shared drives, or physical storage
Enables powerful search capabilities across all contract content
Provides role-based access control for appropriate visibility
Creates a complete audit history of all contract actions
According to Wolters Kluwer (2024), 65% of Chief Procurement Officers believe that contract management software improves risk management by enabling organizations to identify potential issues before they escalate.
4. Automated alerts and notifications
Contract automation platforms provide proactive notifications for critical dates and deadlines, ensuring teams never miss important milestones such as:
Renewal deadlines
Expiration dates
Payment obligations
Compliance requirements
Performance reviews
This capability is particularly valuable for managing large contract portfolios. The International Association for Contract and Commercial Management reports that effective contract management can lead to a 9.2% improvement in annual revenue, with automated alerts playing a key role in this value creation.
5. Integration capabilities
Modern contract automation solutions integrate with existing business systems to create a unified ecosystem where data flows seamlessly between applications. Common integrations include:
Customer Relationship Management (CRM) systems
Enterprise Resource Planning (ERP) platforms
Electronic signature solutions
Procurement systems
Financial management tools
These integrations eliminate duplicate data entry, ensure consistency across systems, and provide a more comprehensive view of business relationships.
Measuring the ROI of contract automation
Understanding the return on investment (ROI) from contract automation software is essential for securing buy-in and justifying the expense. Here's a framework for calculating potential ROI:
According to PwC, enterprises could save 2% of their total annual costs by implementing automated contract management systems to improve contract accuracy and compliance. Goldman Sachs concludes that automation can speed up negotiations by 50% and reduce payment errors by 75-90%.
Implementation strategies for success
Successfully implementing contract automation software requires thoughtful planning and execution. Based on industry best practices and customer experiences, here are key recommendations:
Phase 1: Assessment and preparation (1-3 months)
Conduct a contract inventory to identify all existing contracts, their locations, and current management processes
Define clear objectives aligned with organizational goals, such as reducing cycle time or improving compliance
Identify key stakeholders and form a cross-functional implementation team with representatives from legal, procurement, IT, and relevant business units
Establish success metrics (KPIs) for measuring ROI and impact
Phase 2: Implementation and configuration (3-6 months)
Select the right solution based on your specific requirements, budget, and integration needs
Configure workflows to match your approval processes and business rules
Migrate existing contracts into the new system, using AI to extract key terms and metadata
Integrate with key systems to create a connected ecosystem
Develop standardized templates and clause libraries for consistency
Phase 3: Adoption and optimization (6+ months)
Provide comprehensive training tailored to different user groups
Create champions within each department to drive adoption
Monitor usage and performance against established metrics
Gather user feedback for continuous improvement
Expand capabilities by implementing advanced features and additional integrations
Following these phases helps organizations avoid common pitfalls and maximize value from their contract automation investment.
Industry-specific applications
While contract automation delivers benefits across all sectors, its application varies based on industry-specific needs:
Higher education
Colleges and universities manage thousands of contracts with complex compliance requirements. A National Association of Educational Procurement study found that the average higher education institution spends $70 million on outside vendors and maintains relationships with 1,230 different vendors.
Contract automation software helps these institutions:
Centralize contract management across decentralized departments
Standardize agreements for consistent terms and conditions
Ensure regulatory compliance with laws like FERPA
Track vendor relationships to prevent duplicate contracts
Protect intellectual property and sensitive information
Contract automation can accelerate negotiation cycles by 50%, reduce erroneous payments by 75-90%, and cut operating and processing costs by 10-30% in educational institutions.
Healthcare
Healthcare organizations must manage complex regulatory requirements while controlling costs. Healthcare contract automation provides:
Enhanced HIPAA compliance through standardized agreements
Improved vendor relationship management for medical supplies
Streamlined credentialing processes for practitioners and facilities
Risk mitigation for patient care agreements and insurance contracts
Consolidated visibility across multiple facilities
One healthcare organization, Kettering Health, implemented contract automation to transform their contract management processes, resulting in significant time savings and improved compliance (Aavenir, 2021).
Financial services
The financial sector deals with high-volume, high-risk contracts that require stringent compliance. Contract automation helps by:
Ensuring adherence to regulations like GDPR, KYC, and AML
Standardizing complex financial agreements
Providing audit trails for regulatory reporting
Managing counterparty risk through automated assessments
Accelerating deal closures for time-sensitive transactions
JP Morgan implemented blockchain-based smart contracts for cross-border payments, significantly reducing processing times and improving efficiency (Legittai, 2024).
Emerging trends in contract automation
The contract automation landscape continues to evolve, with several key trends shaping its future:
1. Generative AI advancements
Generative AI is transforming contract automation, with capabilities extending beyond simple data extraction to include:
Drafting complete contracts based on minimal inputs
Analyzing historical negotiations to suggest optimal terms
Generating customized playbooks for different contract types
Predicting potential risks and suggesting mitigations
Generative AI is a game changer for contract professionals, though implementing it effectively requires careful consideration of when and how to apply it.
2. Blockchain and smart contracts
Blockchain technology is enhancing contract automation through:
Tamper-proof audit trails for greater accountability
Self-executing smart contracts that automatically enforce terms
Enhanced security for sensitive contract information
Streamlined multi-party agreements with greater transparency
Organizations like Dubai's Land Department have implemented blockchain-based systems for property transactions, resulting in increased efficiency and reduced fraud (Legittai, 2024).
3. Mobile-first solutions
As work patterns shift toward hybrid models, contract automation is adapting with mobile-friendly interfaces. A full 71% of legal teams now operate in a hybrid model, increasing demand for accessible contract solutions that work across devices.
These mobile capabilities ensure that business continues uninterrupted regardless of location, enabling:
On-the-go contract approvals
Real-time collaboration from any device
Instant access to contract information in meetings
Electronic signatures from mobile devices
4. Predictive analytics
Advanced analytics capabilities are enabling organizations to:
Forecast renewal outcomes based on historical data
Identify patterns in contract performance
Optimize pricing based on contract analysis
Predict potential compliance issues before they occur
Recommend strategic contract improvements
These capabilities transform contract management from a reactive to a proactive function, helping organizations identify opportunities and mitigate risks before they materialize.
May 2025 Contract Automation Trends
As of May 2025, several emerging developments are reshaping the contract automation landscape:
1. Hyper-automation Integration
The convergence of AI, RPA, and machine learning technologies is creating end-to-end automated contract ecosystems that require minimal human intervention. Organizations are implementing hyper-automation to connect contract processes with broader business operations.
2. ESG Compliance Capabilities
With increasing regulatory focus on Environmental, Social, and Governance (ESG) factors, contract automation platforms now feature specialized tools to track sustainability commitments, diversity requirements, and ethical business practices within agreements.
3. Vertical-Specific Solutions
The market is seeing a shift toward industry-tailored contract automation platforms with pre-configured templates, clauses, and workflows designed for specific sectors like healthcare, construction, and SaaS.
4. Quantum-Resistant Security
As quantum computing advances, leading contract automation providers are implementing quantum-resistant encryption to ensure long-term document security against future decryption threats.
Implementation challenges and solutions
While the benefits of contract automation are clear, organizations often face challenges during implementation. Understanding these potential roadblocks and their solutions can help ensure success:
Challenge 1: Stakeholder resistance
Many stakeholders, particularly legal teams, may resist changing established processes or worry about automation replacing their expertise.
Solution: Focus on how automation enhances rather than replaces human judgment. Involve key stakeholders early in the selection process and demonstrate how the system will address their specific pain points. Create champions within each department who can advocate for the solution.
Challenge 2: Data migration complexity
Migrating existing contracts and extracting relevant data can be daunting, especially for organizations with thousands of legacy agreements.
Solution: Develop a phased migration approach, prioritizing active contracts and those nearing renewal. Leverage AI-powered data extraction to automate the process, and establish clear data standards for consistency. Consider working with implementation partners who specialize in contract migration.
Challenge 3: Integration with existing systems
Ensuring seamless data flow between contract automation software and other business systems can be technically challenging.
Solution: Prioritize solutions with robust API capabilities and pre-built integrations with your existing tech stack. Develop a clear integration strategy, focusing first on critical systems like CRM and ERP. Consider conducting pilot integrations before full deployment.
Challenge 4: Budget constraints
Securing funding for new technology investments can be difficult, particularly without a clear ROI case.
Solution: Build a compelling business case highlighting both hard cost savings and soft benefits. Start with a smaller implementation scope to demonstrate value quickly, then expand. Consider solutions with flexible pricing models that allow you to scale as needed.
How to Choose the Right Contract Automation Software in 2025
Selecting the optimal contract automation solution requires careful evaluation across several key dimensions:
Essential Evaluation Criteria
1. User Experience
The most sophisticated capabilities are worthless if users find the system difficult to navigate. Prioritize solutions with intuitive interfaces that require minimal training and encourage adoption across departments.
2. Scalability
As your organization grows, your contract automation platform should grow with you. Assess whether the solution can handle increasing contract volumes, additional users, and expanded functionality without performance degradation.
3. Implementation Approach
Implementation timeframes vary significantly between providers. Evaluate whether the vendor offers a phased approach that delivers quick wins while building toward comprehensive automation.
4. Integration Capabilities
Contract data should flow seamlessly between your business systems. Determine whether the solution offers pre-built connectors for your critical applications or robust APIs for custom integrations.
5. Security and Compliance
Contract repositories contain sensitive information requiring robust protection. Verify the solution's security certifications, data encryption standards, and compliance features relevant to your industry.
Questions to Ask Potential Providers
How does your AI technology handle non-standard contract formats and languages?
What is your typical implementation timeline, and what resources will we need to commit?
How do you measure and demonstrate ROI for customers similar to our organization?
What differentiates your solution from competitors in our specific industry?
How often do you release updates, and what is your product roadmap for the next 12 months?
Contract Automation Software Evaluation Checklist
Use this comprehensive checklist to evaluate potential contract automation solutions:
Core Functionality
- Automated document generation from templates
- Configurable approval workflows
- Centralized contract repository with advanced search
- Automated alerts for critical dates and milestones
- Electronic signature capabilities
- Clause library with version control
- Obligation management and tracking
- Reporting and analytics capabilities
Advanced Capabilities
- AI-powered contract analysis and risk assessment
- Third-party paper ingestion and analysis
- Collaborative negotiation tools
- Mobile accessibility and approvals
- Integration with key business systems (CRM, ERP, etc.)
- Customizable dashboards and reporting
- Global language support
- Blockchain/distributed ledger capabilities
Implementation and Support
- Phased implementation approach
- Dedicated customer success manager
- Comprehensive training program
- Ongoing support options
- Regular product updates
- Active user community
- Migration services for existing contracts
Need to know
Contract automation software FAQs
Conclusion: The business imperative for contract automation
As organizations face increasing pressure to optimize operations, reduce costs, and mitigate risks, contract management has evolved from a nice-to-have technology to a strategic necessity. By transforming how contracts are created, executed, and managed, automation enables businesses to:
Accelerate contract cycles by 80%, creating faster paths to revenue
Reduce administrative costs by 25-30% through streamlined processes
Improve compliance by 55% with standardized templates and automated monitoring
Free up valuable resources to focus on strategic initiatives rather than manual tasks
Extract actionable insights from contract data to inform business decisions
The organizations that embrace this digital contract management evolution will gain significant competitive advantages—closing deals faster, reducing costs, mitigating risks, and strengthening relationships with customers and suppliers. Those that maintain manual processes risk falling behind as competitors leverage automation to achieve greater efficiency and agility.
Whether you're just beginning your contract automation journey or looking to enhance existing capabilities, the time to invest is now. The tools are more sophisticated, accessible, and affordable than ever before, and the potential return—in efficiency, compliance, and financial performance—makes this one of the most impactful investments an organization can make in today's competitive business environment.
