Extract from Pedram Abrari’s article “How to Keep Common Generative AI Pitfalls From Derailing Your Contract Management Programs”
Many legal professionals are quickly learning that generative AI alone won’t solve their toughest contract management challenges, and few AI-enabled CLM solutions are delivering on their promised results. In fact, an American Bar Association (ABA) survey of legal professionals revealed 74.7% of respondents cited “accuracy” as their top concern when using generative AI, followed by “reliability.”
The findings underscore why simply applying generative AI to contract management programs isn’t as easy as uploading contracts to an AI-enabled platform and asking questions. Behind the polished CLM demos and vendor promises lies a complex framework of technical challenges that can quickly derail an organization’s most pressing contract management initiatives.
While the theoretical promise of generative AI for contract analysis is compelling, the practical reality has proven far more challenging. Many organizations that have attempted to apply general-purpose AI models to contract analysis have encountered persistent technical limitations that hinder reliable, accurate results at enterprise scale.
