Crossing the AI Chasm: Most Still Face Barriers to Adopting AI

by Alice Alfano |
Share:

To get some clarity and cross the contract AI chasm,  we have partnered with World Commerce & Contracting to conduct the first-ever, comprehensive benchmark study on the benefits, barriers, and usage of AI within contract management. In this part of our series "Crossing the Contract AI Chasm", we dive deep into our fifth trend: most organizations still face significant barriers to AI adoption.

Our Findings

Despite the growing enthusiasm for AI across industries, our research shows that many companies still face barriers to adopting it for contract management. Actually, 60% of respondents said that they are facing one or more barriers to adoption. 

There are numerous barriers to be faced when trying to adopt AI for contract management, but our research uncovered three main barriers of concern. They are:

1. Obtaining budget

Although many companies reported that they have a budget for CLM solutions, budget for AI tools is less common. This may be because many CLM vendors require a point solution to supply AI functionality, requiring additional budget and time for implementation.

Another possible reason that companies are struggling to secure budget for AI tools is that they are challenged to create a compelling vision of future gains AI can help achieve. As a result, stakeholders are unable to generate a convincing business case and demonstrate the return on investment that these tools offer.

2. Consensus among stakeholders

Unfortunately, the individuals who could benefit the most from AI aren’t always the decision-makers. Those in lower to mid-level management positions are the ones who see the most impact in their everyday jobs. However, respondents reported that most key sponsors for AI initiatives were at the VP or C-suite level. In order for AI tools to experience widespread adoption and for companies to reap the organizational benefits, buy-in from all levels of the organization will be essential.

3. No CLM solution in place

Nearly 50% of respondents said that they have not fully implemented a CLM solution. Without a strong contract management foundation in place to build upon, AI is not able to provide its full benefit.

 

Key consideration

AI tools should be seen as an extension of the contract management ecosystem

The same implementation barriers may be causing a lack of trust in CLM vendors to provide the foundation needed for AI tools to truly benefit an organization. It’s possible this disconnect, paired with unmet expectations, is placing a strain on contract management practitioners who are often responsible for building the business case for new or additional solutions.

To read the full benchmark report, click here.

To see what an AI-charged solution can do for you, check out our Lifecycle AI page! If one of your top priorities for the next few months is to implement a CLM solution, request a demo!

You Might Also Like

When Company Culture Isn’t Cliché: Settling In

Hi, I’m Lindsay, and my road to Malbek has been an interesting one. I went from a job that expected ...

Read More
DEI Discourse: How to Embrace Diversity in Legal

A commitment to diversity, equity, and inclusion should be on every company’s radar. However, it's ...

Read More
3 Lessons Learned from Inbound 2022

Although it was a busy three days, we had a great time at HubSpot's Inbound last week. From walking ...

Read More
Crossing the AI Chasm: The Need for Speed Drives Use

To get some clarity and cross the contract AI chasm,  we have partnered with World Commerce & ...

Read More

Posts by

Post a Comment

Blog Authors

Alice Alfano is a Marketing Coordinator at ...

Allison Martyn is a Business Analyst who ...

Anna Lozynski is an award winning executive ...

Anne Moore has been helping customers automate ...

Anneliese Strout is a Principal Business Analyst ...

Becky Holloway began her marketing career in the ...

Betel Zewde was born and raised in Ethiopia and ...

Colin is a sought-after legal tech writer and ...

Dan Sloan has been helping companies successfully ...

Gary Zuder has been a trusted sales consultant to ...

Hemanth Puttaswamy is a technology entrepreneur. ...

Jaime has always been passionate about helping ...

Kevin Brening has been a SaaS enthusiast for the ...

Lindsay is eager to provide authentic connection ...

Madhu is a technology visionary and an expert in ...

Matt Patel is considered an all-rounder who can ...

Taeler Gannuscia, Product Marketing Manager at ...