Agreements keep supply chains, vendor relationships and partnerships running. However, tracking all the moving parts manually is prone to errors, lost paperwork and outdated processes. Plus, handling all those documents can be quite time-consuming.

Artificial intelligence (AI) solves this problem in numerous ways. The best AI-powered tools for managing contracts flag problem areas so you can address them before they become disasters.

Selecting the perfect tool for your company is about more than picking one with the best price or most features. You must find a platform that ties into the unique challenges your business faces.

A strong methodology ensures you’re comparing the same features across options. It’s vital to know how much value you’ll get and how easy it will be to implement the product.

Methodology

Consider these options rather than spending untold hours sorting through everything out there. Criteria were applied to ensure each one meets the needs of the average IT or supply chain manager.

AI Models	Not all AI is created equal. Does it help identify clauses, detect risks and automate processes like renewals?
Compliance	Which standards does the software align with, and does it cover the needs of your industry? Look for programs that align with GDPR, SOC2 and HIPAA as well as state regulations.
Scalability	Will the tool grow as your partnerships increase? Will it remain affordable at an enterprise level?
User Interface	How intuitive is the system? Can management easily understand how to send agreements to stakeholders, and will third parties understand how to sign and submit a document?
Reporting	How detailed are reports? If the system identifies potential risks, does it explain how to fix them?

 

Each tool works as a personal assistant, tracking signing deadlines, project milestone requirements and finding hidden promises often forgotten after the ink dries. The platforms also send renewal reminders to ensure updated contracts. Before selecting one, consider several current pain points and how it might solve those issues.

The Best AI-Powered Tools for Managing Contracts Based on Your Needs

Companies managing multiple contracts must piece together supply chain data and deadlines in clear terms. The last thing you want is to miss a renewal date or decipher ambiguous agreements. When everything is clear, you can maintain strong relationships and save money on time spent communicating back and forth. The top AI-powered contract life-cycle management (CLM) tools cover areas of risk and create a better workflow for all involved parties.

1. Agiloft

Agiloft was founded in 1990 as Integral Solutions Corp., giving it over 30 years of experience in the industry. In the early days, Agiloft had a help desk and customer relationship management capabilities, but evolved into a business automation platform. As clients showed their priorities, the CLM portion became a central component of the company’s offerings.

Agiloft stands out because of its low-code platform. It’s easy to configure to your specific needs and offers workflow automation. In addition to monitoring obligations, the platform can automate creation, route to the correct parties for approval and compare versions. The software integrates with over 1,000 programs.

2. Conga CLM

Conga CLM merged with Apttus in 2020, which has company roots dating to 2006. The original Conga focused on document automation, while Apttus specialized in quote-to-cash processes. Now, the company offers everything on a single platform, streamlining revenue processes for companies.

The tool streamlines operations by combining AI-powered contract review and negotiation. It integrates easily with CRM and ERP systems. Conga also features a contract library AI tool that allows users to spot risks, automate redlining and offer additional insights into various contract categories.

3. LinkSquares

Boston-based LinkSquares was created in 2015. A decade later, the provider serves nearly 1,000 clients. The idea for the brand began when the founder dealt with the time-consuming task of giving close attention to contracts and decided to solve the problem with automation.

The platform focuses on contracts, using AI-powered legal models that find hidden contract clauses. Its unique value proposition (UVP) is rapid onboarding for teams to help them immediately see risks and upcoming contract obligations. The software ingests large-scale documents and extracts terms, and even works for legacy contracts. It also excels in ensuring compliance. Those with specializations will find LinkSquares ideal for their needs.

4. Ironclad

Ironclad is one of the early players in moving toward modern AI-driven CLM systems. Jason Boehmig and Cai GoGwilt founded the company in 2014 and operate on a cloud-based platform with clause libraries, automated workflows and intelligent data extraction.

For firms wanting a polished, collaborative agreement, Ironclad offers a conversational AI legal assistant and post-signature contract management that aligns with fulfilling obligations, compliance and renewals. The brand serves as an expert in contract cycle time and reduces workload for executives and stakeholders. Redlining is automated, with analytics for larger documents.

5. LEGALFLY

LEGALFLY is an agentic platform utilizing features such as bulk AI review and AI-powered drafting. It was founded in 2023 by former Tinder experts who saw an advantage to using AI to automate repetitive legal tasks. Although the company is fairly new, its focus on enterprise-level compliance and robust security features allows it to frequently create the best AI-powered tools for managing contract lists.

One advantage of this system is the bulk legal review feature. The faster process may be more flexible for companies with multiple contracts and compliance concerns. LEGALFLY also offers auto-redrafting, sensitive-data redaction and integration with drafting tools, such as Microsoft Word.

How Much Time and Cost Savings Can a Good CLM Tool Deliver?

A McKinsey survey found that 78% of respondent organizations use AI in at least one business function, up 6% since 2024. How much an AI-driven CLM tool saves your company depends on numerous factors. The number of contracts currently managed impacts how much time you save. Firms must also factor in future growth and savings based on more usage. Auto-extraction, redlining suggestions and obligation tracking alone can save firms cycle times and money from legal review hours.

AI platforms can prevent missed deadlines and penalties, as well as re-upping renewals on time. Cash flow can be an issue for startups and even more established organizations during growth phases. CLM tools utilizing AI let you know when a contract is due so you can check in with stakeholders to ensure timely payments that keep money flowing into your business.

While utilizing AI has its time-saving and organizational advantages, relying on it too much can lead to misinterpretation. Pay careful attention to rare clauses and ambiguous wording that might be misconstrued. You’ll also want to ramp up data privacy to ensure regulatory compliance, especially with systems existing in the cloud. Ask third-party providers how they protect your and your clients’ personal information.

To best use a CLM tool without disrupting current operations, choose a narrow use case, such as renewal tracking, before adding additional tasks. Ensure you fully understand how to implement the system into your processes before expanding its use. You’ll also want to look at key performance indicators, such as cycle time and cost savings.

Your Contract Data Needs More

Written agreements protect you legally and contain operational and financial data you can use to expand your business. Finding the best AI-powered tools for managing contracts requires understanding your biggest issues with maintaining the data.

Poorly managed contracts result in wasted time and potentially fall short of obligations. You could lose clients, pay penalties and forget renewals. Adding AI tools into the mix ensures you use your contract data to build your brand reputation and size. Utilizing a CLM system to improve pain points moves you from fixing problems to managing tasks and becoming a more agile, responsive organization.