Over half of consumers believe that companies are already using artificial intelligence in their contract management practices, according to new research by GetApp. Asked about which stage in the contract management lifecycle they believe could be most improved by artificial intelligence, editing contracts for accuracy was the top choice, closely followed by writing and/or preparing contracts.

artificial intelligence in contract management

In an interesting juxtaposition, the top two answers to the question “How often do you think companies are using Artificial Intelligence technologies to assist with the creation/management of contracts (e.g. legal documents)?”, were ‘sometimes‘ (33.7%) and ‘never‘ (26.3%), indicating a split in the general public’s opinion.

Cloud-based contract management solutions have evolved to become sophisticated alternatives to traditional paper-based contract management options, and the likes of Microsoft and Cisco are dipping their toes into testing how artificial intelligence can improve their contract management life cycles.

Tami Baddeley, operations lead for legal operations and contracting at Microsoft, says that Microsoft is currently running a pilot project using artificial intelligence technology to test how well it can analyze strategic contracts for things such as common terms, and what their “relationships look like” with strategic partners based on the analysis. The objective, Baddeley says, is to test whether artificial intelligence technology for contract management can reduce the amount of time that Microsoft attorneys spend analyzing contracts, and shift that extra time to be spent on higher-level work.

However, while enterprises are testing the waters with artificial intelligence in contract management, the deployment of artificial intelligence within contract management processes today is far from the norm, and consumers remain confused about its current role.

Key Findings

  • Over fifty percent of respondents believe that companies are currently using AI technologies to assist with the creation/management of contracts either ‘very often’ or ‘sometimes’.
  • Only 6% of respondents believe that AI technologies are always used in contract management, while 26.3% believe that they are never used.
  • The majority of respondents (28.7%) believe that editing contracts for accuracy would be most improved by the use of AI technologies, followed closely by writing/preparing contracts (23%).

Details of the research

Question #1: How often do you think companies are using Artificial Intelligence technologies to assist with the creation/management of contracts (e.g. legal documents)?

#1. Sometimes – 33.7%

#2. Never – 26.3%

#3. Very Often – 22.4%

#4. Rarely – 11.7%

#5. Always – 6%

Demographics: Over 200 US-based respondents. Respondents are all aged over 18 and have an average inferred annual income of $24k – $150k.


Question #2: Which part of the contract management lifecycle do you think would be most improved by the use of Artificial Intelligence technologies?

#1. Editing contracts for accuracy – 28.7%

#2. Writing/preparing contracts – 23%

#3. Ensuring the legal compliance of contracts – 21.1%

#4. Negotiation of contract terms – 15.2%

#5. Contract approval – 12.1%

Demographics: Over 200 US-based respondents. Respondents are all aged over 18 and have an average inferred annual income of $24k – $150k.


What next?

If you’re searching for a cloud-based contract management solution, this checklist details which essential features you’ll need, and what key considerations you’ll need to make before selecting one.

Check out some of the leading contract management solutions on the market:

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