How Automation & AI Decrease Contract Management Costs

Companies Struggle with Revenue and Cost Management

Many companies experience unnecessarily high costs and mismanage revenue due to inefficient contract management operations.

According to Model N’s 2020 State of Revenue Report:

82% of executives say revenue management is an increasing challenge

98% of executives say they face some sort of revenue management challenge

According to the IACCM:

Poor contract management costs companies 9% when it comes to their bottom line

According to the Harvard Business Review:

Ultimately, inefficient contracts lead to a 5-40% loss of value on any given deal

Most Companies Don’t Take Full Advantage of CLM Platforms

Even when companies have implemented CLM software, they often don't take advantage of its full capabilities and likely use a vendor that doesn't give them a complete repertoire of functions.

65% of companies use some form of contract management solutions, including applications or home-grown variations

According to deloitte:

45% of companies indicate that they are looking into AI solutions to reduce legal workload and improve performance

According to cloc:

While most companies use their contract management solution in similar ways, there are a few features of a CLM system of which most companies do not take advantage:

Defined and automated workflows

Functionality to search for key terms, dates, and clauses

Assembling contracts from a clause library

according to forrester:

Only 43% of CLM vendors allow you to use metadata tagging of clauses in imported or third-party contracts

Only 29% of CLM vendors contain robotic process automation to streamline approval of changes to standard contract language

Only 25% of vendors have advanced analytics to identify new risks, opportunities, and obligations within their contracts

Key Indicators that AI and Automation Reduce Costs

By using an intelligent CLM platform that includes automation and AI, the opportunities to save time and reduce costs are exponential and endless.

50% reduction in the necessary legal resources, leading to increased efficiency

40% reduction in delivery turnaround of your contracts

60% cost reduction when it comes to implementation of your solution

According to Deloitte: With an intelligent contract management solution, you can realize a...

Are you ready to take the leap to using AI and automation to streamline your contract management process? Schedule a demo with IntelAgree to learn how.

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