Introduction
Artificial Intelligence (AI) is revolutionizing Contract Lifecycle Management (CLM) to help enhance contract processing and compliance efficiency, among other areas. That wasn’t always the case. Early AI systems encountered significant challenges with the intricacies of legal language, which led to widespread skepticism for using AI to write and negotiate contracts in their entirety.
Agentic AI represents a new wave of AI innovation. Current agents can anticipate needs and autonomously initiate actions, while providing contract redlines and approval routing based on pathways and logic that is codified into the system. Yet despite these advancements, Large Language Models (LLMs)—which Agentic AI agents are built on—continue to falter when faced with lengthy contracts and they also introduce substantial risk when relied on to autonomously negotiate and execute agreements.
For those reasons, human oversight remains indispensable for reducing risk and providing the necessary strategic reasoning required in contract negotiation.
As Agentic AI continues to grow in the market, it is critical to help ensure that sensitive decisions are scrutinized by qualified individuals and that they align with the organization’s ever-changing requirements. The key to successfully integrate Agentic AI into the contract lifecycle process, therefore, is balancing AI efficiency with human expertise, ensuring robust strategic oversight and continued technological progress.
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