The contracting industry has seen a digital transformation, generating excitement for how contracts are created, managed, and executed. Technology adoption has introduced efficiencies, improved accuracy, and enabled better collaboration. However, as the number of contracts management technology suppliers continues to grow, as well as the features and capabilities they offer, it can be challenging for contracts teams to ensure their technology supports their evolving practices. This article explores five digital contracting trends that every business must understand to ensure solid contracts technology strategies and roadmaps into the future. 

1. User Experience Is Driving User Adoption

Contract Lifecycle Management (CLM) platforms remain the cornerstone of digital contracting, offering end-to-end management of contracts from drafting and approval to execution and renewal. These tools automate workflows, enable standardised templates, and provide real-time tracking of contracts statuses. 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.

As functional differences across CLM platforms become more subtle, user experience becomes the main differentiator for stakeholders. Integration with other enterprise systems like ERP, CRM, and procurement tools is crucial. 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.

2. AI-Powered Contracts Management Is Mainstream and Constantly Evolving

AI and machine learning have transformed contracts management by automating tasks like contracts review, risk analysis, and compliance monitoring. Contracts professionals rely on AI-powered tools daily to extract key clauses, terms, and obligations, reducing manual review time and mitigating human error. Generative AI is further changing what’s possible in contracts management and the next evolution of CLMs.    

While AI-powered contracts review has become an essential contracts management practice, businesses must continue to evaluate AI-powered solutions, either as stand-alone tools or as part of a CLM offering, as they constantly evolve. From AI model offerings and recall and precision performance to the integration of new Gen AI features for generating playbooks for contract renewals, there are many aspects of AI-powered contracts management that a business should consider to improve its performance. It’s also critical for them to assess the readiness and integrity of their current CLM repositories to realise the advantages of AI.

3. Contracts Technology Is Raising the Importance of Data Privacy and Regulatory Compliance

As contracts technology becomes central to contracts management, data privacy and compliance are increasingly critical. Regulations like GDPR, CCPA, DORA, and other regional data protection laws impose strict requirements on handling personal and sensitive data. Non-compliance can result in severe penalties and reputational damage. Organisations must integrate compliance features into their contracts management systems to ensure data collection, storage, and processing meet regulatory standards. 

E-signatures, along with digital authentication methods like multi-factor authentication (MFA) and biometric verification, are essential for verifying the identity and legitimacy of signatories. With the rise of remote work, these technologies are important for secure and efficient contracts execution. Businesses must regularly update security protocols to counter evolving cyber threats and ensure CLM solutions, including e-signatures, comply with regulations like eIDAS in the EU and the ESIGN Act in the US. Maintaining audit trails and automating compliance checks can help reduce the risk of violations and ensure ongoing compliance. 

4. Remote Work Is Setting New Standards for Cloud Platforms

Cloud-based platforms drive real-time collaboration in contracting, allowing multiple stakeholders to work on contracts simultaneously from different locations. These platforms offer version control, real-time editing, and instant communication, ensuring all parties stay aligned throughout the contract lifecycle. Features in certain CLM solutions like shared document access, automated notifications, and integrated communication tools (e.g., chat and video conferencing) help reduce delays and improve accuracy in contracts creation, negotiation, and approval processes.

As remote and hybrid work environments become the norm, these tools enable teams to maintain efficiency and transparency regardless of physical location. Businesses must develop strategies that consider security, data governance, and supplier management. Cloud providers should be evaluated on their data encryption, uptime guarantees, and compliance with industry standards.

5. Analytics and Reporting Are Now Fundamental to Obligation Management

Extracting and surfacing important contracts data is critical for businesses to understand their obligations. Advanced analytics tools provide insights into a business’ transactions, helping them not only understand the details, but also proactively identify associated criteria and potential risks. Predictive analytics enables organisations to forecast outcomes, such as pricing fluctuations, based on historical data. Dashboards and reports offer visibility into key deal metrics, including conditions, contracts cycle times, value leakage, and renewal rates. By leveraging analytics, organizations can optimise contracting strategies, negotiate better terms, and improve financial outcomes in renewal management and dispute resolution. Integrating these tools with broader business intelligence systems ensures that contracts data contributes to overall strategic planning and operational efficiency.   

Conclusion

Digital trends in contracting are reshaping traditional processes, making them faster, more efficient and more secure. This ultimately increases the flow of transactions and fosters data-driven growth with clarity on contractual obligations. To stay ahead, organisations need proactive strategies to future-proof their contracting and remain agile. Building strong relationships with technology suppliers and delivering continuous training for teams is crucial. By adopting the right technologies and refining processes, businesses can ensure long-term success.

Karthik Radhakrishnan
Director, CLM R&D and Chief Architect, Epiq
Karthik is an experienced Technology Leader with over 35 years of IT experience, specializing in the conception, development, and management of software applications. With over 20 years of expertise in Contract Lifecycle Management (CLM) and Configure, Price, Quote (CPQ) domains, he consistently delivers high-quality solutions to clients.