Modern business contracts take too long to create, manage and execute, according to a new report from Conga.
The report claims it takes the average business 2.6 days to execute a contract, while a fifth of businesses take five days or more. According to respondents, however, this process shouldn’t take more than 1.2 days on average, suggesting there is significant room for improvement.
Further, the majority of businesses only scored their contracts a six out of ten, when asked how successfully all risks, obligations and opportunities are covered.
Among the biggest challenges businesses face when drafting these contracts is the lack of visibility across contract creation and management processes, as well as too many parties being involved in their creation.
To solve the bottleneck and speed up the process, businesses are turning towards next gen CLM (contract lifecycle management) tools, claims the report.
These might feature AI-enabled systems that guide users to the right contract templates and clauses, semantic analysis tools that help identify issues in contracts or as bots for voice or instant messaging user interaction.