By 2024, the legal tech market was worth more than US $10.63 billion, according to Grand View Research. The fastest-growing leader in this category is contract management software: applications that help companies create, sign, and manage contracts more efficiently. In fact, the European contract management software market is expected to rise to US $1.71 billion by 2033, representing a growth of 10.56% from 2025 to 2033, according to MarketDataForecast. But what is contract management? And where is this explosive growth coming from?
Contract management is a process that helps companies manage contracts efficiently, thereby reducing the risk of errors and non-compliance. If this process occurs ineffectively, companies risk financial losses or damage to reputation. The IACCM states that inadequate contract management processes can cost on average 9% of companies their revenue annually. In addition, KPMG warns that poor contract management can result in a loss of up to 40% of the value of a contract for a company.
A common problem is that companies lose their contracts because they are not stored in one central location. Contracts are sent manually or from various tools to a variety of contracting parties for review or signature, then end up in a mailbox, personal computer or unstructured cloud storage.
A contract management software puts a stop to these risks by guaranteeing contract oversight in the first place. All contracts are stored in one place - ideally an online place with robust security features - and can be meticulously tracked from there through their cycle.
The COVID-19 pandemic forced many companies to move to remote working and accelerated the implementation of digital tools. With that digitization, many companies saw the opportunity to also take control of their contract management process.
Anno 2021, this digitization process was supported in certain contract management softwares with their first applications of artificial intelligence (AI), just like Contractify's AI assistant, ADA. Since the launch of ChatGPT in 2022, the broader population has also been introduced to AI in everyday life, making the technology increasingly easy to pick up in the workplace. The increasing accessibility of AI in the same year brought about a spectacular digitization of the legal world, a sector previously known to be rather averse to modernization.
For the legal industry, the implementation of artificial intelligence is a game changer and facilitates critical business processes, including contract management. This has not escaped the notice of software developers in the market. Many contract softwares nowadays offer an AI tool, resulting in a proliferation of AI functionalities. This excessive supply makes it difficult for companies to discern which software to invest in and, more importantly, which ones are actually worthwhile.
In response to this growing need for overview, Contractify has been organizing Contract Management Day, the largest gathering for contract management in the Benelux region, ever since 2023. This legal tech event offers lawyers, finance directors, buyers & contract managers the opportunity to share best practices, network and learn from innovative players in the industry. This year, the focus of Contract Management Day is on driving business change and transformation. Guest speakers, business cases and workshops will help participants understand the topics of AI, data, and innovation. In the Legal Tech Town, Contractify offers an overview of the most relevant legal tech & contract management solutions on the market. Exhibitors will be on hand with product demos and explanations of support services, so visitors can go home with a clear picture of the legal tech scene.
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