Today, the ground reality of contract lifecycle management has evolved. Running around circles for contract drafting, reviewing, negotiating, and signing is no longer in practice, thanks to digital trends in contract management!
Businesses have encountered numerous challenges in terms of contract handling, consuming not only money but also time and resources. Managing multiple contracts can lead to inefficiencies, missed deadlines, compliance issues, and regulatory complexities.
However, with the advent of new technologies and contract management services, businesses are now able to protect their profit margins and achieve the desired success. According to a report by Gartner, in 2024, AI-powered contract analytics will eliminate the manual contract review process, indicating that digitalization will soon take over contract management.
Emerging Contract Management Trends
In the coming years, we will witness a dramatic change in compliance and regulation, with the integration of eSign to execute contracts and the application of CRMs and ERPs. AI and automation will play a pivotal role in contract management in 2023, streamlining processes and enhancing accuracy. Artificial intelligence (AI) can analyze contract data to find potential problems and opportunities. Automation can handle tasks like data entry, freeing up people to focus on more important things.
Contract Lifecycle Management (CLM) software can help businesses manage their contracts more efficiently, from creation to renewal. This can save time and improve compliance. Data-driven decisions will be powered by contract data analytics, providing valuable insights into business performance and risks.
Businesses will invest more in analytics solutions to make better decisions about their contracts. Blockchain and smart contracts will also be adopted to make contract information more secure and transparent.
Smart contracts will revolutionize the landscape with self-executing agreements, reducing the need for intermediaries.
In 2023, businesses will experiment with these technologies, capitalizing on their transformative potential in contract management.
The Future of Contract Lifecycle Management
The future of contract management is bright because businesses are digitizing their operations, which means they need more efficient and effective ways to manage contracts. The trends in the infographic below show how contract management is changing. We can expect even more innovation in this space as businesses find new ways to use technology to improve their contract management processes.
Statistical insights into the latest trends in contract management 2023