AI in Contract Management: What Can We Expect?
AI in Contract Management: What Can We Expect?
Artificial intelligence is no longer science fiction. From ChatGPT to automated image recognition – AI has become everyday reality. But what does it mean for contract management? And how can you prepare for a future where intelligent systems help with everything from drafting to risk assessment?
Where Are We Today?
AI in contract management is already a reality, albeit still in its early stages. The most widespread applications right now include automatic extraction of key information from documents, intelligent search across contract archives, basic risk identification based on clauses, and automated reminders based on dates and deadlines.
These features are already saving businesses hours, but it's only the tip of the iceberg.
The Next 2-3 Years: What's Coming Soon
1. Intelligent Contract Drafting
AI will be able to generate first drafts based on minimal input. You describe the agreement in plain language, and the system produces a legal document. Human review remains essential, but the starting point becomes far better.
2. Automatic Risk Analysis
Systems will scan contracts and highlight potential issues: unbalanced liability limitations, unusual clauses, missing standard provisions. Think of it as a legal spell-check.
3. Negotiation Assistance
AI will be able to suggest alternative wording during negotiation, based on what's typically accepted in similar agreements. "The counterparty will likely reject this clause. Here are three alternatives that are often accepted."
4. Automatic Categorisation and Tagging
New contracts will automatically be categorised, tagged, and archived correctly. No more manual folders and inconsistent naming.
Longer Term: 5-10 Years Ahead
1. Predictive Analytics
AI will be able to predict which contracts are likely to lead to disputes, which customers typically renegotiate, and when agreements should be renewed proactively.
2. Self-Optimising Templates
Templates will continuously improve based on data: Which clauses get negotiated away? Which wording creates confusion? The system learns and adapts.
3. Natural Language Interaction
Instead of clicking through menus, you'll be able to say: "Find all contracts with Company A expiring within 90 days that have a termination clause of less than 30 days."
What AI Won't Replace
Despite advances, there are areas where humans remain indispensable. Complex negotiations still require human judgement, empathy, and creativity. Strategic decisions about which agreements to enter require business understanding. Legal advice in new or unusual situations requires experience and context. And relationships with customers and partners are still built by people.
AI becomes a tool that amplifies human capabilities – it doesn't replace them.
Practical Implications for Your Business
1. Start Digitalisation Now
AI requires data to work with. Companies still running on paper will be years behind when AI tools mature. Digital contract management today is the foundation for AI benefits tomorrow.
2. Structure Your Data
The better organised your contracts are, the more value AI can extract. Consistent naming, correct categorisation, and complete metadata pay off.
3. Choose Future-Proof Solutions
When choosing a platform for digital signatures and contract management, consider the vendor's AI roadmap. ePact is continuously working on integrating intelligent features that make your everyday work easier.
Concerns and Challenges
AI in contract management also raises questions. Data security is crucial – who has access to your contracts when they're analysed by AI? Legal liability for AI errors remains unresolved. And dependence on technology requires backup plans.
Serious vendors address these concerns proactively with encryption, clear data processing agreements, and transparent AI processes.
The Bottom Line
AI will fundamentally change how we work with contracts. Routine tasks will be automated, risks identified faster, and documents drafted more efficiently.
But change happens gradually. You don't need to wait for the perfect AI solution. Start digitalising your contract management today with a platform like ePact, and you'll be ready to reap the benefits as the technology matures.
The future of contract management is intelligent. The question is simply whether you're ready for it.
