From paper to pixels: How AI is modernizing legal departments  

Imagine a bustling law department, where filing cabinets full of paper contracts are replaced by robust software platforms, and the tedious task of contract review is streamlined by the power of artificial intelligence (AI). This is not a scene from a futuristic movie, but the reality of today’s legal landscape. 

Recently, Agiloft explored the future of contract management with a webinar that brought together some of the brightest minds in the industry. The panel, featuring Prashant Dubey, Chief Strategy Officer at Agiloft, Amy Good, VP of Client Engagement at Harbor, Kevin Clem, Chief Growth Officer at Harbor, and Mike Haven, Head of Global Legal Operations at Intel Corporation, explored the revolutionary role of data and AI in the legal tech world. 

As the discussion unfolded, it became clear that the adoption of AI, and in particular its newest iteration, generative AI (GenAI), is not just a trend, but a seismic shift that is reshaping the way legal departments operate. From enhancing efficiency to enabling strategic decision-making, AI is proving to be a game-changer. 

The drive to “do more with less” 

The discussion began with insights from the 2023 Harbor Law Department Survey, which revealed that law departments are increasingly looking to leverage technology to “do more with less.” In fact, 80% of the survey respondents anticipated increased “legal demand” in the next year. 

“It’s been the trend we’ve seen for many years: the expectations of demand for legal services continue to be on the rise while concurrently the budgets, and/or the amount of resources, are not growing at the same clip,” Clem said.  

This increased legal demand, which Good said has emerged in the last few years but is even more pronounced in the 2023 results, drives the industry’s current emphasis on optimization. Five years ago, only 11% of Harbor’s survey respondents were looking to optimize an existing system. This year, however, almost one in five organizations surveyed are focusing on getting the most out of their software, particularly their contract management systems.   
 

“We’re starting to see almost a revolution of sorts in law departments where people, even lawyers, are starting to be really focused on efficiency gains and leveraging technology to drive efficiency gains,” Haven said. “You can’t do that unless you have clean, curated data and [understand] how they work together. It’s something that everybody’s starting to really grasp onto, understand, and appreciate.” 

The rapid adoption of AI and GenAI

Predictably, a key area of focus was the rapid adoption of AI and GenAI within legal departments.   

According to Agiloft’s 2023 AI usage survey results, about one in five respondents actively engage with AI today, with the EMEA market ahead of the U.S. in current adoption. However, more than half of the remaining respondents planned to adopt AI over the next 6 to 12 months, suggesting the market may be as hot as the media hype.   

“It sparked a revolution and all of a sudden, everybody’s interested in efficiency gains and what they can do with this technology,” Haven said. “It’s just extremely popular. People are really excited about it.” 

However, the panelists unanimously agreed that it is critical to align data-centricity with the irreplaceable “human element.” 

“Everything that we’re talking about here is a balance between data-centricity and human-centricity, Dubey said. “So, essentially, there’s still human beings at either end, and in the middle of all the processes we’re talking about.” 

Predictions for the new year

Optimistic about the future of CLM and its potential to drive significant value for businesses, they highlighted several key areas of focus for 2025: 

• Increased productivity: As companies continue to experiment with and implement AI and CLM technologies, they can expect to see substantial productivity gains. 

• Enhanced integration: The integration of CLM with other enterprise systems will be crucial for maximizing the value of contract data and improving overall business processes. 

• Strategic use of data: Leveraging contract data for strategic decision-making will become increasingly important, enabling companies to optimize their contracting processes and manage risk more effectively. 

Looking ahead to 2025, the panelists unanimously predicted continued disruption and innovation in the contract management space. As Clem observed: “There’s a recognition that you can’t be averse to the exciting opportunities…This is here to stay.” 

Conclusion

The future of contract management is bright, with AI at the forefront of this transformation. As companies continue to adopt and integrate these technologies, they can look forward to a more efficient, data-driven approach to contract management that drives significant value across the organization. 

Embrace the future of contract management. Read our blog to learn more about how a data-first approach can drive results at your organization.