Contract Negotiation Automation Trends 2020 Has Brought Us
Contract negotiation automation is a fix for the slow, manual process of traditional contract negotiations; now, there is software that makes this stage of legal contracts much easier and faster by allowing teams the ability to discuss terms, generate documents, and sign electronically.
In this article, we will discuss the effect COVID-19 had on contract management, the trends of contract automation negotiation, and why this software is vital for your business to grow.
Contract Negotiation Automation In 2020
The advancement of contract negotiation software and contract management automation has been massive due to the ongoing coronavirus pandemic; now, more than ever before in recent memory, the need to conduct day-to-day business operations digitally is mandatory. Otherwise, commerce as a whole risks collapsing – businesses must continue to operate and to do so, they need contract negotiation software.
The process of contracts is considered a ‘lifecycle’; this cycle, from contract creation to signing, has historically been done manually using paper and pens. Although contracts have been online since the early days of the first computer, businesses have been slow to catch on and use software designed specifically for managing contracts… This has obviously changed in the year 2020.
The ability to automate the key elements of the contract lifecycle eliminates manual work and cuts back on time; not only is it faster, but contract negotiation automation is safer (due to security tools and the automatic prevention of human-caused errors).
Contract Management Trends In 2021
Continuing with the contract management trends of 2020, this year has paved the way for even more advanced tools. After relying on contract management technology for the past year and a half, businesses realize the advantages of using these solutions beyond the pandemic.
Here are some of the most prominent agreement automation trends this year:
AI (Artificial Intelligence) in contracts
AI-based contract management allows professionals to focus on their strategies while improving their awareness of contractual risks and the correlations between data, contract language, and processes.
AI contract management technology is designed to streamline data analysis and risk management using automated data entry and risk mapping. This allows users to make the most informed decisions, improve their document oversight, and efficiently identify opportunities and risks.
Contracts for remote workers
Many corporations are still conducting their operation online or partially online. This is why contract negotiation automation is such a big deal in today’s market. This software allows telecommuters to manage and settle agreements digitally. Instead of meeting with business partners to negotiate an agreement in person, both parties can simply log onto the platform and collaborate on the same document in real-time.
Cloud storage and security
Today, most companies use the cloud to their benefit in some way or another. One of the most prominent contract management technology tools of 2021 is cloud-based storage and security. The cloud allows you to store your essential documents on a single platform with advanced encryption features. This ensures that those who need to access documents remotely can easily, and those who don’t are kept out.
It’s challenging to keep up with today’s ever-changing data privacy regulations manually. Innovative contract management software simplifies your data privacy process by storing documents and tracking any changing laws. That way, as soon as a new privacy regulation goes into place, you can identify who it applies to and issue an addendum, making it much easier to stay on top of your legal obligations.
Guide To Negotiating Software Contracts
If you are new to automated contract review software, consider this a brief guide to negotiating software contracts.
Here are the main contract negotiation automation trends:
Benefits of Contract Negotiation Software
One of the main benefits of negotiation software tools is the improved productivity of the contract workflow; this process is streamlined since the software eliminates all manual contract management.
This software makes it easier to manage the many legal contracts that most businesses must manage – all contracts are easily searchable and can be viewed with a simple click of a mouse, 24/7.
Manual contract assembly carries the risk of human error, errors that the automated contract review software simply won’t allow.
Negotiation Software Tools vs. Manual Contract Tracking
Manual contract tracking requires team members to personally view every single stage of a contract’s lifecycle – the downsides of this are plenty, including loss of valuable time and the risk of overlooking key mistakes. When a human being is responsible for tasks, this opens up the opportunity for the entire workflow of a contract to be halted by delays.
Contract negotiation automation acts as a mediator between all parties in a legal contract; with this software, the various members of a contract are automatically alerted and instructed when action is required of them. Missed deadlines or dates happen far less and all versions and edits of contracts are stored and available for retrieval, at all times.
Automated contract review eliminates the bottlenecks that naturally come with legal contracts.
How Contract Negotiation Software Stores Contracts
Manually storing documents in file cabinets is a thing of the past; when using contract negotiation software, all files are safely stored online.
Many businesses deal with thousands of contracts in a typical calendar year; tracking can put businesses at risk of not meeting financial goals, being exposed to lapses in security, and difficulty with contract organization.
When legal contracts must be accessed, contract management software makes this as easy as possible.
Software Negotiation Strategies: Why Automation Is Key
Contract negotiation automation allows your business the ability to streamline the laborious process of creating, managing, and signing legal contracts; using this software, contracts are less prone to human error, more easily viewed, and ultimately become less of a burden on all parties involved in the contract.
When less time is spent on the meticulous details of signing contracts, more time is freed to focus on key aspects of a business’s daily operations and growth.
For the best implementation of this software into your business and to prevent confusion, provide software contract negotiation training to all members of your team.
Contract Management Technology Predictions For 2022
From 2020 to 2021, we have seen significant advancements in CLM technology, and we expect 2022 will be no different. Technology is the primary form of client engagement in these unprecedented times, which doesn’t seem to be changing anytime soon. So, for 2022 we expect management platforms to continue to evolve as enterprises look for new ways to stand out among their competitors.
Here are a few examples of expected contract management innovations for 2022:
Utilizing contract management technology is by far the fastest way to handle your formal agreements. However, as other digital platforms continue to increase their speeds, we can only expect CLM software to do the same. More incredible processing speeds mean that companies will close deals quicker, leading to a more satisfied client base.
Many CLM platforms already have a host of external apps that you can use. However, different companies have different needs, so software providers will likely continue to add compatible apps. This will make it far easier for professionals to utilize management software as they can integrate it with many other platforms they’re already comfortable using.
Simplified user interface
To make their platform more appealing and user-friendly, software companies will most likely continue improving and streamlining their interface. Whether they switch to a more modern design or layout their features instinctively, businesses will love the interface changes in store for the software.
Greater levels of artificial intelligence in contracts
Automation is the main reason why companies use contract management technology, so it would make sense for the providers to improve their most significant selling point. 2022 could bring us contract automation that we’ve never seen before with more advanced AI and even less work on the user’s end.