The AI Paradox: Why CLM Technology Adoption Remains Low

CLM automation tools provide a digital solution for contracts and dated administrative tasks. These tools offer a convenient and secure digital solution, replacing the need for scattered files and bulky cabinets. Teams can execute and analyze legal documents with greater ease.

Creating and approving contracts in the past required a lot of manual work, including drafting, review, and finalization. CLM tools allow using customizable templates, standardizing clauses, and seamless routing of approvals. This means legal professionals can focus on more important tasks while drafting and approving contracts becomes more straightforward.

Despite these clear advantages, only 55% of corporate legal departments were using CLM systems in 2021. Why are half of legal departments hesitant to embrace tools that promise increased efficiency and accuracy? Could the fear of technology replacing jobs be causing hesitation to embrace advancements that could benefit everyone?

Barriers to Widespread Adoption of AI-Powered CLM Technology

Adaptation to new technology doesn’t always come from a worry of replacement. There are still a lot of different reasons why CLM adoption across industries has been slow:

  • High Expenses: Implementing and maintaining advanced AI-powered CLM systems can be a major barrier for smaller companies or those with limited budgets. Additionally, the cost of training staff to effectively use these tools can create further financial strain.
  • Awareness Gap: Many businesses may be unaware of the existence of CLM solutions, while some teams may even underestimate their potential impact. A lack of clear information and success stories can lead to skepticism and reluctance to adopt unfamiliar technologies.
  • Resistance to Change: Legal and administrative professionals often work within well-established workflows and methodologies. Introducing these tools may be perceived as disruptive and time-consuming to learn. This resistance to change, rooted in a preference for the familiar, can create a significant barrier to adoption.

The Role of Legal Professionals in a World with AI

While AI-powered tools offer remarkable speed and efficiency in contract drafting, the expertise of legal professionals remains indispensable. Their input is necessary to ensure that contracts are tailored to meet specific needs and adhere to legal requirements.

While AI can provide boilerplate elements, legal teams adapt contracts to each client’s specific needs, adjusting language and provisions to ensure the best possible fit – a task that no amount of automation today can perform better.

Final thoughts

As technology evolves, legal professionals  remain at the forefront of innovation, adapting to new precedents and regulations to provide the most effective counsel. The value of attorneys lies partially in their ability to blend legal knowledge with strategic thinking in a constantly-changing landscape.

Zeal simplifies your CLM process with frictionless adoption. Learn how to streamline your legal workflows by scheduling a free consultation with us. Just click here.