How Generative AI & Agentic AI are Revolutionizing CLM

Contracts are at the core of every business—but managing them is often slow, risky, and painfully manual. In 2025, that's changing fast. Contract Lifecycle Management (CLM) is undergoing a powerful evolution driven by generative AI and agentic AI. Together, these technologies are transforming how contracts are created, negotiated, tracked, and enforced—making processes smarter, faster, and more strategic.

This blog explores the key use cases, benefits, challenges, and how AstuteCLM, a GenAI-powered Contract Lifecycle Management platform, delivers end-to-end impact.

How Generative AI Transforms CLM From Draft to Execution

Let’s explore how generative AI is streamlining content creation, accelerating reviews, and powering smarter document management.

Smart Drafting & Clause Generation

Generative AI analyzes vast datasets of past contracts to craft drafts tailored to specific use cases. The result is legally compliant contracts in minutes rather than hours. For example, platforms powered by OpenAI models like GPT-4 can automatically insert necessary clauses based on contract type, vendor, and internal policies.

Automated Summaries & Redlining

Reviewing contracts can be tedious. Generative AI addresses this by summarizing complex contracts and identifying risky sections. It even suggests redlines based on historical patterns and company playbooks.

Metadata Extraction & Data Tagging

Contracts are information-rich. Generative AI extracts metadata—such as parties, dates, obligations, and penalties—for tagging and analysis. This structure makes large repositories searchable and actionable.

Intelligent Search Across Repositories

Need to check whether a clause has been used before? Generative AI supports natural-language search across contracts and knowledge bases. Lawyers and business users can find past precedents or playbook guidance instantly.

Agentic AI in CLM: The Game-Changer

Learn how autonomous AI agents are orchestrating complex contract tasks with little to no human intervention.

End-to-End Workflow Automation

Agentic AI delivers autonomous contract workflows. It extracts data, routes approvals, flags risks, and handles renewals without manual intervention. It operates across tools via APIs, following business rules and governance.

Multi-Agent Collaboration & Conversational Contracts

Multiple AI agents, each for drafting, risk assessment, negotiation, and orchestration together. They communicate, adapt, and adjust in real-time. Instead of human oversight at every step, agents handle multi-tiered tasks under broad supervision.

Real-Time Orchestration & Exception Handling

As contracts evolve, agentic AI updates risk ratings and triggers alerts on missing signature approvals or approaching renewal deadlines. This proactive orchestration ensures no contract slips through the cracks.

Why AI-Driven CLM Delivers Faster, Safer, Smarter Results

Discover how organizations can get benefits from AI-powered efficiency, accuracy, and decision support.

Speed & Efficiency Gains

Generative AI accelerates drafting and redlining by up to 40 percent. Agentic AI eliminates manual handoffs, reducing end-to-end CLM cycle times by as much as 40 percent.

Risk Reduction & Compliance Assurance

AI systems flag non-compliant clauses, regulatory discrepancies, and audit gaps. Agentic AI monitors contract portfolios in real-time and adjust risk scores as negotiations progress or new regulatory standards emerge.

Strategic Value & ROI Enhancement

Executives see revenue growth through faster deal closures, reduced leakage, and improved compliance. Gartner notes that AI-driven CLM yields return on investment by decreasing cycle times and optimizing negotiation outcomes.

Challenges & Best Practices for AI-Driven CLM

Explore the risks, governance requirements, and strategies needed to deploy AI in CLM successfully and securely.

Trust, Governance & Human Oversight

Full automation isn’t risk‑free. Organizations must implement guardrails, human-in-the-loop checks, version control, and audit trails. Responsible design ensures agentic AI operates within acceptable policy boundaries.

Integration & Architecture Considerations

To operate effectively, AI agents need connectors to different enterprise systems—ERP, CRM, and signature tools. Building a modular agentic architecture and leveraging RAG (retrieval-augmented generation) frameworks ensures seamless workflows.

Data Security & Identity Controls

Contracts contain sensitive information. AI systems must comply with zero-trust frameworks, strong access control, encryption, and role-based authorization to prevent unauthorized use.

Conclusion: Empowering CLM with GenAI and Agentic Intelligence

Generative AI and agentic AI together redefine contract management. Generative AI handles content automation—drafting, summarizing, redlining and tagging—while agentic AI orchestrates full workflows, proactive risk monitoring, and autonomous decision-making.

Astute Business Solutions builds upon these technologies in AstuteCLM, our GenAI-powered CLM platform. AstuteCLM delivers:

• Rapid Drafting & Clause Generation using generative AI trained on your templates.
• Automated Negotiation Support via redline suggestions based on regulatory policies and past outcomes.
• Proactive Risk & Compliance Monitoring through agentic workflows that dynamically assess changes and trigger alerts.
• End-to-End Orchestration across systems to manage approvals, signatures, renewals, and reporting—faster, smarter, and more secure.

By adopting this dual AI approach, organizations can achieve dramatic improvements in speed, accuracy, risk control, and contract value. For business leaders ready to modernize contracting, AstuteCLM provides the perfect platform to transform contracts from static paperwork into strategic, intelligent assets.