#USA #New York #contract management #SpotDraft #AI Impact Report

Transforming Legal Operations: AI in Contract Management

The recent release of SpotDraft's 2025 AI Impact Report has created a stir in the legal industry, shedding light on the transformative role of artificial intelligence (AI) in contract management. SpotDraft, a leading platform focusing on contract lifecycle management, conducted a comprehensive study with feedback from 192 legal professionals primarily based in North America. The findings reveal that contract management is perceived as the area poised for the most significant change driven by AI.

Key Insights from the Report

A staggering 70.8% of surveyed professionals predict that contract management will undergo profound AI-driven transformations in the coming three years. The emphasis on clause identification and analysis, which topped the list with 74%, indicates a clear expectation for AI to streamline the previously cumbersome processes involved in contract evaluation.

According to Akshay Verma, COO of SpotDraft, engaging AI consistently enables legal teams to shift the focus from administrative duties to strategic advantages. “We can see for ourselves that contracts are evolving from mundane tasks into assets that bolster our business strategies,” he noted.

Functions Improved by AI

Aside from clause analysis, the report details additional functionalities where AI is making inroads within legal teams:

• - Drafting and Template Generation (66.5%): Automation is enhancing both the efficiency and quality of contract creation.
• - Repository Management (51.3%): AI aids in better organization and retrieval of contract information.
• - Negotiation Support (51.3%): AI tools provide insights that strengthen negotiating stances.

AI Utilization Patterns

The report underlines a crucial pattern concerning productivity among legal professionals using AI:

• - A significant 91% of daily AI users report productivity gains, with 29% noting substantial improvements. Conversely, only 59% of less frequent users experienced similar benefits, showcasing that regular interaction with AI technologies amplifies their positive impact.
• - Interestingly, as legal professionals gain more experience using AI, their ethical concerns appear to decrease. This counters the assumption that familiarity with such technologies heightens anxiety regarding ethical considerations. In fact, reports indicate that 71.4% of firms noticed no job displacements due to the implementation of AI, with many expanding their workforce as they integrate these tools.

The Future Skillset of Legal Professionals

The shift in legal practices necessitated by AI integration leads to evolving skills in the workforce. The most pivotal skills for the future include:

• - Strategic Thinking (30%): Emphasizing an outlook that influences decision-making and business direction.
• - Advanced Legal Knowledge (20%): Ensuring legal professionals maintain robust understanding against a backdrop of evolving AI technologies.
• - Understanding AI Tools (27%): The ability to leverage AI tools effectively in practice will be critical for upcoming legal experts.

Future Strategies for Implementation

SpotDraft's findings advocate that legal teams should approach AI adoption strategically:

• - Starting with high-volume, low-risk contracts could yield quick wins while building confidence.
• - Implementing AI functionalities in phases encourages users to adjust and build familiarity over time.
• - Focusing on tangible productivity gains rather than immediate cost savings will help teams appreciate AI’s value.
• - Continuous feedback loops are recommended to enhance the integration process based on user experiences and insights.

As Tommie Tavares-Ferreira, Cedar’s Head of Legal Operations, articulates, “By offloading routine tasks, AI empowers lawyers to concentrate on strategic advice that necessitates human insight.” This sentiment reflects a growing understanding within legal circles: AI is not a replacement but a tool that enhances the profession.

Conclusion

In conclusion, as organizations navigate the complexities of modern legal landscapes, SpotDraft's 2025 AI Impact Report highlights the undeniable potential of AI to revolutionize contract management. With a focus on continuous learning and adaptation, legal teams are not just surviving but thriving in the digital age. For further insights, download the full report at SpotDraft's AI Impact Report.