Remember J.A.R.V.I.S.? Tony Stark’s ultra-smart AI assistant that handled everything making his life so effortless it almost felt human. We’ve all wished for our own J.A.R.V.I.S. at some point. A digital sidekick to tackle the tedious work while we focus on bigger things.
Well, that future isn’t as far off as it once seemed. In the legal world, AI is already changing how we manage contracts, making the process faster, smarter, and more accurate. In a mere 26 seconds, AI can review complex legal documents with 94% accuracy.Â
So, keeping the stats in mind, let’s explore where AI stands today in contract management. How it’s changing the traditional contract reviewing process, and how you can implement it into your contract lifecycle.Â
What is AI-based contract management?Â
AI-based contract management uses artificial intelligence to automate, analyze, and streamline contract-related tasks. Instead of manually sifting through lengthy agreements, AI-based contract management tools can read, understand, and process contracts automatically.
AI in contract management functions on Natural Language Processing (NLP). If you've ever used Google Gemini, ChatGPT, Claude, Siri, or the highly publicized DeepSeek, you’ve already interacted with NLP and Generative AI. In contracts, this technology helps AI extract key clauses, summarize long documents, and flag potential risks; ensuring no critical detail gets overlooked.
But it doesn’t stop there; machine learning takes it a notch higher. AI can learn from countless contracts to spot patterns and manage contract risks more effectively over time. And when you pair that with advanced data analytics, contract data turns into actionable insights, helping businesses track compliance, monitor performance, and predict risks before they arise.
As Mike Haven, the Head of Global Legal Ops at Intel (now Meta), puts it, AI is revolutionizing how we handle data:Â
"AI can just go to work with the data... Over time, AI will be able to structure the data for us."Â
This means that in the future, AI contract management solutions will not just analyze structured data but organize and optimize it, making contract processes even more seamless.
How AI is changing contracts?
From summarizing lengthy contracts to extracting expiry dates, here's how AI is changing the way businesses used to operate contracts:Â
1. Automated contract review and analysis
The problem: Contract review is one of the most tedious tasks for legal ops teams. It means flipping through dense agreements, hunting for that one clause buried on page 37, second-guessing ambiguous language, and triple-checking compliance risks. Because if you miss something, it’s on you. It’s long hours, high stakes, and a never-ending queue of documents waiting for your attention.
How AI is solving it: AI-powered contract management tools take the grunt work off your plate. They scan entire agreements in seconds, surface key clauses, flag risks, and highlight compliance issues so you’re not stuck combing through endless pages. Instead of getting buried in paperwork, your team can focus on higher-value work that actually moves the needle.
2. Identify and assess contract risks
The problem: If you’ve ever managed multiple contracts at once, you know how easy it is to miss essential contract details. On top of it, manually revising each document to identify vague clauses, non-compliance issues, or unfavorable terms is another headache you would not want to face in your work.Â
How AI is solving it: An AI-based contract management software does a spectacular job of analyzing large volumes of contracts and flagging risks in no time. For example, AI can automatically identify a non-standard or unusual clause that deviates from your standard clauses. It can also identify missing critical terms or obligations, key dates, deadlines, renewal, and expiration dates.Â
3. Contract drafting assistance
The problem: You know, drafting contracts from scratch can really be a drag. It’s so tedious and takes up a ton of time! Plus, if you miss even one little clause, it can lead to some big headaches later on. And then there’s the pressure on legal teams to make sure every single contract is completely aligned and compliant with the company's policies. It's a lot to juggle, isn’t it?
How AI is solving it: Companies are working on AI-powered contract tools that could completely change the game. These systems are being trained to pull from massive databases of existing agreements, making contract generation faster and more reliable. The idea? Instead of starting from a blank page, legal teams could build contracts using AI-driven clause suggestions tailored to specific deal types.
4. Clause and key terms extractionÂ
The Problem: We understand that there are times when you’re knee-deep in a contract, flipping through pages to find that one key clause. Deadlines are tight, and every detail matters. But when contracts are long and inconsistent, spotting risks feels like a needle in a haystack problem.
How AI is solving it: Using advanced natural language processing, AI tools can automatically identify and extract critical information like payment terms, liability limitations, or confidentiality agreements from your contracts. Take Signeasy's key terms extraction feature as an example here. Not only does it automatically identify and highlight key terms, but it also lets you jump directly to specific sections with a simple 'Go to Source' click.
5. Obligation tracking and deadline management
The problem: When you're managing multiple contracts, each with its own renewal dates, performance review cycles, and important milestones, it's easy for a deadline to slip by. But when it comes to contract obligations, missing a deadline isn’t just a minor blip. It can damage relationships or lead to lost revenue opportunities, and trust us, that can create a ripple effect throughout the entire organization.
How AI is solving it: Using AI systems, you can automatically scan your contracts for important dates and obligations. One cool feature we have is the contract renewal reminder. So, when our AI assistant detects an upcoming date in your contract, you can set up automatic reminders with just a click! Plus, it syncs right to your Google, Outlook, or Apple calendar, so you’ll never miss a deadline.Â
7 Benefits of AI for contract managementÂ
AI will take over jobs? The big debate will always be there! But instead of replacing you, here’s how different teams can use AI to simplify contract management and boost efficiency:
1. For legal ops teams
Reviewing contracts, ensuring compliance, and mitigating risk, legal ops teams are no strangers to repetitive workloads. Manually spotting indemnities, liability clauses, or termination terms is time-consuming and leaves room for human error.
In our conversation with Lucy Bassli, founder and principal of InnoLaw Group, we came across some insights about how AI is transforming legal operations. She pointed out that AI is making contract management so much more efficient and automated. Unlike traditional lawyers who focus on practicing law, legal ops teams are treating contract workflows more like business processes, where things like speed, accuracy, and standardization become super important.
“If I think where I see AI making a really good substantive impact, it is definitely in contract extraction and contract review.”
- Lucy Bassli
While some lawyers are understandably cautious about AI, legal ops professionals actually see it as a tool that can really streamline processes. It helps them manage compliance better, speeds up negotiations, and keeps everything consistent across contracts.
2. For procurement teams
Procurement teams must monitor contracts with complex payment and delivery terms. Inconsistencies or missing clauses can lead to disputes, delays, or financial losses.
AI-based contract management solutions can help them make sure the standard clauses are in place and warn about inconsistencies before they become a bigger issue. It also helps track contract renewals and payment terms so they never miss a deadline or face unexpected obligations.Â
3. For sales teams
Sales teams handle a high volume of contracts, from NDAs to pricing agreements, often under tight deadlines. Incorporating AI-based contract management solutions into their workflow streamlines contract generation, accelerates approvals, and provides real-time visibility into deal terms and renewals.
It can suggest optimal contract terms based on your past successful agreements. You can use it to scan compliance issues, highlight high-risk clauses, and make sure the contract meets legal requirements. When you let AI handle all those repetitive tasks, your team can focus on what really matters, negotiating smoothly and closing deals faster.
4. For HR teams
Human resource teams deal with complex employment contracts, NDAs, and policy acknowledgments on a daily basis. Incorporating AI-based contact management solutions into their workflow speeds up the document, review, approval, and tracking process.Â
In a candid conversation with Signeasy, Anurag Dariria, Head of Human Capital at Enkash, says their adoption of AI-based contract management has been a game-changer - what once took 4-5 days now takes mere minutes. The AI doesn't just speed things up; it intelligently analyzes contracts, flags inconsistencies, and provides quick summaries, freeing the HR team to focus on more strategic initiatives.
“Contracts and document management are crucial aspects of HR operations in any industry… We use an AI-powered contract management platform similar to Signeasy, which has been a game changer. It speeds up approvals and contract signing—from something that used to take four to five days to just four to five minutes. AI also helps flag inconsistencies in contracts and provides instant summaries, so we don’t have to go through the entire document manually.”
- Anurag Dariria
Sandra Gacusan, HR Consultant at La-Cabana, adds that their AI-driven system produces a seamless digital approval sequence. The transformation has enhanced their ability to serve their "associates" (as they warmly refer to their employees) by reducing administrative burdens.
Sudi Guda, HR Manager at La-Cabana Beach Resort, agrees that AI has made their document management effortless. Instead of digging through binders, HR teams can now access contracts instantly, making life so much easier.
“Like Sandra mentioned, we had a long process before we even got to the contracts, and all of that needed to be done manually—through paperwork, different forms, and approvals. Now, with Signeasy and our digital processes, it moves a lot faster. It’s more efficient and quicker for approvals to take place. Instead of manually tracking documents in an interdepartmental envelope, AI now ensures everything moves seamlessly."
-Sudi Guda
5. For banking and finance teams
Financial contracts are packed with legal and regulatory requirements. A single oversight in risk clauses or compliance terms can lead to hefty penalties or legal disputes.
AI flags risky clauses, ensuring contracts meet industry regulations before they’re finalized. It also simplifies contract review with AI summaries, allowing finance teams to assess key terms quickly. For example, with Signeasy’s AI Summary feature, you get an instant snapshot of your contracts, reducing the time spent on manual review.
6. For healthcare teams
Healthcare teams manage contracts while staying compliant with HIPAA and other strict regulations. Missing a renewal date or failing to update compliance clauses can lead to severe consequences.
AI monitors contract expiration dates and flags upcoming renewals, preventing lapses in agreements. It also checks for regulatory compliance, ensuring that healthcare contracts align with HIPAA and other legal standards.
“Our AI assistant keeps an eye on upcoming deadlines and sends you timely reminders so you never lose track. The AI gives you an option to set a reminder when it detects a future date. With just a click, an event is added to your calendar. Never miss a deadline.” Karthik Suroju, Head of Product, Signeasy
7. For construction teams
Construction projects involve multiple stakeholders, tight deadlines, and detailed agreements. Manually tracking project milestones, penalties, and submission deadlines is overwhelming and can lead to costly mistakes.
AI extracts crucial data points like project timelines, payment schedules, and penalty clauses, so you always stay ahead of deadlines. Automated reminders keep all parties on track, reducing miscommunication and delays. AI ensures that every contract detail is accounted for, helping construction teams manage projects seamlessly.
7 Tips for deploying your AI contract management solutionÂ
Ready to implement AI for contract management? Here are seven actionable tips to ensure a smooth deployment, and get the most out of your AI-based contract management solution.
1. Assess your needs and current system: Before implementing an AI-based contract management solution, evaluate your existing contract workflows. Are approvals taking too long? Are contracts lost in email threads? Identify bottlenecks and inefficiencies. A clear understanding of your pain points will help you choose the right AI solution that aligns with your business goals.
‍
2. Take a demo to ensure compatibility: Before choosing a solution, schedule a demo call to see how a solution works in real-time. Ask about automation, integrations with your current software, and user-friendliness. The right tool should fit seamlessly into your existing workflow without creating extra work.Â
3. Get leadership and stakeholder buy-in: AI-based contract management impacts multiple teams– HR, legal, finance, and procurement. Create a compelling implementation proposal for leadership that outlines how automation can cut delays, improve compliance, and reduce manual errors. When decision-makers see the long-term ROI, they’re more likely to support the implementation.
4. Develop an implementation process: Before you bring AI into your contract management, you need a solid implementation process in place. AI thrives on structured, well-organized workflows. If you try to implement AI on top of a messy contract management process, it won’t be nearly as effective.
"Technology always does one thing… it automates processes. But before you move to automation, you need to make sure you have the right process. When you layer automation on top of a good process, you make magic."
- Mike Heaven,Head of Global Legal Ops, Intel
5. Choose the right AI-based contract management solution: AI features are rolling out everywhere, but not all are created equal. Look for a solution that prioritizes security, compliance, ease of use, and automation.Â
6. Invest in training for your team: Even the best AI tool won’t be effective if teams don’t know how to use it. Organize hands-on training sessions, provide user-friendly guides, and encourage employees to ask questions. The more confident your team feels, the smoother the transition will be.
7. Monitor, optimize, and maintain: AI-based contract management isn’t a set-it-and-forget-it solution. Regularly review performance, track key metrics, and adjust workflows as needed.Â
Speed up your contract approvals with Signeasy AI
The future of contract management is about working smarter and letting AI handle the heavy lifting while you focus on building relationships and growing your business. And if you're part of a fast-growing team that values speed, accuracy, and efficiency, Signeasy AI is built just for you.
With Signeasy’s AI assistant, you get a smarter, faster, and more reliable contract management experience. It helps you extract key insights, automate tedious tasks, and make data-driven decisions—without sacrificing security. Built on private, encrypted servers and trusted platforms like Azure and AWS, Signeasy ensures your documents stay confidential and protected.
Don’t take our word for it, Book a quick demo and see it for yourself!
