Contract lifestyle management is going through a significant transformation every year, with new technologies and trends influencing the system in innovative ways. Here are some of the trends to look out for in 2023.
AI for contract analysis will become increasingly popular in 2023 as organizations seek to enhance their processes. AI’s ability to quickly analyze vast amounts of contracts, extract relevant information, and identify potential risks is revolutionizing the contract review and management process. According to a report by Deloitte, companies can make a 60% reduction in contract management costs by using AI.
Contract negotiation and management are quite tricky. Manual management can lead to errors, which is why, apart from AI, people are leaning towards NLP. Natural Language Processing (NLP) is increasingly vital in simplifying complex contract data. This year’s trend is for it to get valuable insights from these complex materials, presenting the information in simple, easy-to-understand terms. This allows organizations to make informed decisions more quickly and accurately.
Finally, CLM platforms will include more integrations and customizations to make it easier for companies to initiate contract negotiations and manage them efficiently. The CLM platforms’ task is to be as flexible and versatile as possible to accommodate external integrations, ranging from payment to vendor management.
This is just the beginning of 2023. Newer trends and phenomena will become part of the field. But from what one can see, AI and smart tech will play a massive role in its growth.