Technology promises many efficiencies, cost savings and other benefits to the legal industry, but it is often still met with hesitation and uncertainty.
When it comes to AI in Contract Lifecycle Management (CLM) – managing a company’s exposure in the drafting, negotiating, review and renewal of the hundreds of contracts it has to process at any one time – concerns surrounding nuance, data security and integration can act as obstacles for legal teams nervous about embracing digital tools that promise to make the process more efficient. But having the right legal playbook in place, that sets out a company’s risk appetite, and the issues it will be concerned about in contracts, will ensure that the machines involved are programmed to flag clauses that need closer inspection and human input. Improving the speed at which contracts are processed, whilst maintaining accuracy and fit with a company’s policies, can do a lot to increase the onboarding of new business and new suppliers that can be critical to a company’s performance. There is much to be gained, if people’s nervousness can be overcome. Here experts dispel the 5 common myths that get in the way of lawyers embracing technology.
Myth 1: Tech-optimised contract management places nuance and positioning at risk
Many lawyers fear that if the contract management process is automated, it could fail to pick up important nuances and strategic points. But having the right playbook in place will ensure the processing of contracts is much faster without missing crucial detail.
“These tools automate workflows, enable standardised templates, and provide real-time tracking of contract statuses,” explains Karthik Radhakrishnan, Director of CLM R&D and Chief Architect at Epiq. “By managing contracts-related data with AI and machine learning, CLM systems enhance contracts analytics, risk detection, and decision-making for better visibility and compliance.”
Myth 2: Sensitive data could be compromised more easily
Some lawyers fear that tech could compromise data and regulatory compliance. But well-built CLM systems actually give lawyers more, not less control over these factors.
Lindsey Pitt, Contracts Solutions Vice President at Epiq, says “Gen AI can integrate with legal and regulatory databases to provide real-time alerts, ensuring the playbook reflects the latest compliance requirements”.
Myth 3: Integration with existing systems will be a headache
There are also some concerns surrounding the integration of tech with existing systems. Legal teams are already under a lot of pressure and want to avoid a complicated rollout and onboarding process. But well-built CLMs are designed to be easily integrated and used. “Integration with other enterprise systems like ERP, CRM, and procurement tools is crucial.” says Karthik. “Modern CLMs that are intuitive, and feature drag-and-drop functionality, customisable dashboards, and contextual guidance reduce complexity and enable users to quickly access information and complete tasks with minimal training. Ensuring high user adoption and integration across departments is still the top strategy for achieving data consistency, operational efficiency, and overall CLM success.”
Myth 4: Gen AI weakens accuracy and control in legal playbooks
Legal playbooks are a key element of CLM. “Legal playbooks standardise responses to common contract pushbacks and empower non-legal personnel (e.g., procurement team members) to handle certain contract types or tasks independently,” explains Lindsey. “Playbooks are useful training tools for new contracts professionals who need to get up to speed with the organisation’s approach to managing risk.”
While some may question whether using Gen AI in playbooks could compromise accuracy and control, it actually enhances it by making legal principles and experience easier to apply.
“Gen AI uses your standard template positions as benchmarks for a third-party template,” says Lindsey. “Using Natural Language Processing (NLP), Gen AI detects deviations in counterparty templates from your standard positions, flags high-risk sections for review, and provides a quantified risk score for the contract or specific sections.”
Gen AI in playbooks can even learn from an organisation’s previous negotiations. “Gen AI analyses executed contracts and extracts fallback language that has been accepted in the past to complement the preferred positions in your standard templates,” Lindsey notes. Ultimately, Gen AI isn’t playing guesswork, it’s founded upon previous legal decision making.
Myth 5: Lawyers will be replaced by AI
Gen AI is designed to enhance, rather than replace, legal expertise. Epiq is currently piloting Gen AI to build first-draft playbooks by “breaking down provisions, identifying common pushbacks, and suggesting fallback language – without engaging lawyers.”, Lindsey says, adding that “lawyer time is then used more judiciously to refine these drafts,”.
“Gen AI isn’t just a tool – it’s a strategic partner in creating intelligent legal playbooks”, she says. Ultimately, by combining CLM platforms, legal playbooks and Gen AI, alongside the expertise of legal professionals, legal teams can expand their capabilities and commercial success while also maintaining control and oversight.
Epiq is a leading legal and compliance services platform integrating people, process, and technology. Through this combination of innovative technology, legal and business expertise, and comprehensive solutions, Epiq drives efficiency in large-scale and increasingly complex tasks. High-performing clients around the world rely on Epiq to streamline the administration of business, settlement administration, legal, and compliance operations to solve immediate challenges and provide scalable ongoing support to transform the enterprise.
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