The right CLM can speed up deals, reduce risk, and give legal real control over obligations and compliance. The wrong one can create bottlenecks, frustrate your business partners, and lock you into a system that doesn’t scale.
Many legal teams have already invested in AI contract management systems, only to find out later they don’t meet the actual needs of the business. Several surveys in recent years highlight that enterprises are not satisfied with their CLM as they lacks key functionality. After the time, cost, and internal buy-in it takes to implement, that kind of miss is hard to recover from.
If you’re evaluating a CLM (or replacing one), it’s important to get it right. This guide outlines five steps to help you make a confident, forward-looking decision that holds up under pressure and delivers long-term value across your organization.
- Identify your challenges and priorities
Before exploring any solution, start by identifying exactly what’s not working with your current contract management process. Ask yourself if contract cycles are taking too long, if contract data is complex to access or stuck in silos, if risks or compliance issues are being overlooked, and if there’s limited visibility into contract performance and overall value. These questions will help you identify the primary issues you’re facing.
Write them down, along with the improvements you’d like to see, such as better visibility, improved accuracy, stronger risk mitigation, or faster turnaround times. Then, rank these pain points and priorities in order of your importance. It will give you a clear picture of what your ideal AI contract management solution must be able to solve.
- Will this CLM still serve you in 2030 and beyond?
Once you’ve identified your current needs, it’s time to look ahead. Think about how your business will evolve in the next two, five, or even ten years. Ask yourself how many contracts you expect to manage in the future, whether your contracts will become more complex as you expand into new regions or industries, and how your workflows, approvals, and collaboration processes might change. Additionally, consider the type of reporting and analytics your team will require in the future to make informed, data-driven decisions. Your CLM shouldn’t be a short-term patch but a long-term partner that can scale with your business, adapt to new demands, and support future growth across geographies, teams, and use cases.
- Do your own research
Once you’ve outlined your current challenges and visualized your future needs, it’s time to explore your options, but don’t just go by what looks good in well-orchestrated demos. Don’t settle for flashy sales decks or marketing hype. Instead, dive deeper by reading independent reviews, ratings and analyst reports by trusted software analysts, like Gartner. Review case studies and testimonials from companies like yours to understand how each solution performs in real-world scenarios. Utilize product demos and free trials to gain hands-on experience.
Do you know? smartContract CLM is a Strong Performer in Gartner’s Voice of the Customer report backed by real customer reviews and insights.
- Don’t just watch a demo. Stress-test it
After conducting thorough research and narrowing down your CLM options, it’s time to go beyond the sales pitch. A polished demo can make almost any platform look impressive, but the real question is, how will it perform under real-world conditions?
Ask for a trial period where your team can interact with the system directly. During the trial period, evaluate how intuitive and user-friendly the interface is for your team. Assess whether the workflows are flexible and easy to customize to match your unique processes. Test how easily you can extract key contract data for reporting or obligation tracking down the line. It’s also important to involve stakeholders from procurement, sales, and legal operations to assess how well the solution aligns across different functions and user types.
Finally, test the responsiveness and quality of customer support, especially during onboarding or troubleshooting issues.
- Final set of questions that will help you make a confident decision
At this stage, when you’ve stress-tested the product and shortlisted your top contenders, it’s time to ask the vendor final set of questions that will help you make a confident buying decision. This decision isn’t just about features, but also about long-term partnership and support. Ask the vendor questions like:
- What’s your track record with companies similar to ours in size, industry, and complexity?
- How long does implementation typically take, and who is responsible for setup, configuration, and training?
- How often do you release updates, and how do you involve customers in the roadmap?
- What level of customer support is included, during onboarding and post-launch?
- What’s your SLA for support response times and issue resolution?
- Can we speak directly with a customer who has rolled out your CLM across multiple departments?
- Push for complete transparency. Consider it a red flag if a vendor struggles to provide solid, confident answers.
Choose once, choose wisely
An AI contract management system impacts more than just legal operations. It influences how contracts move through your business, how teams collaborate, and how risks are managed. Choosing the right solution means thinking beyond feature lists and focusing on long-term fit
Look for a platform that aligns with your priorities, scales with your growth, and supports the way your people actually work. Bring the right questions, involve the right stakeholders, and take the time to get it right. The payoff is worth it.
