Contract tools are presently at the forefront of demand for professionals in the corporate legal sector, even though there have been reports of contract life-cycle management (CLM) tools not wholly meeting user expectations. This finding is part of the latest State of Legal Technology report by Lexion, which involved a survey of over 200 in-house legal professionals.
The study participants included a diverse range of roles within the legal field such as general counsel, legal directors, senior and associate counsel, legal operations personnel, and contract managers. The in-depth analysis covered their experiences and perceptions of current legal tech trends and solutions.
Interestingly, as the economic climate continues to improve, the report has indicated a decline in legal professionals forecasting a reduction or halt in their legal tech expenditure as compared to the past year. For instance, whilst 27% of respondents in 2022 admitted the probability of a spending cut or freeze, only 15% reiterated the same sentiment this year. Moreover, there has been a significant increase in the number of professionals firmly deciding against a pause or reduction in their legal tech spending – an upward shift from 9% in 2022 to 18% in 2023.
Thus, despite implementation issues, the drive for contract technology, including new contract and AI tools, continues to be robust within the corporate legal field, fuelled by the growing legal tech spending trends in recent years.