The truth about CLM software: myth vs. reality

Something happened. It could be a number of things: a substantial and unexpected auto-renewal, missed rebates and incentives, outstanding revenue contractually due from customers…or the current system just “cant keep up.” Whatever the reason, you’re back on the search for new Contract Lifecycle Management (CLM) software, and this time, you must get it right. 

Whether you’re on this search for the first time, or looking for a replacement, there’s a lot to consider and a lot to look out for in the world of CLM software.  

What and who should you be considering while you’re on the hunt?  In general, the job of each provider is to gain more customers – bring the goodness of their CLM to the masses, and beat out the competitors – in other words, we want to look good. So, how do seasoned or even brand new CLM shoppers ensure they’re setting their organizations up for success?  

Here are a few “too good to be true” myths to look out for while you’re on your CLM search. 

Myth #1: A good CLM will always have a quick go-live 

As mentioned, something happened. There’s a reason you’re on this CLM journey and more often than not, it’s a problem you’d like to fix as soon as possible. That said, CLM vendors that tout go-lives in less than 90days might be hard to ignore! After all, a quick implementation timeline means all pertinent teams up and running using the CLM platform and (ideally) quickly getting value out of it, too. Who would, or could, pass up the opportunity to cut your time-to-value, seemingly having the opportunity to go from having no process to implementing a robust contract workflow across all your teams in just weeks – that’d just be silly of you! Right?  

The reality: You CAN get set up in weeks…if your process fits the Out-Of-The-Box (OOTB) solution 

The harsh reality about many of the CLM providers that tout quick implementation timelines is that, in order to meet those deadlines and expectations, teams are forced to alter their pre-existing contracting process to work within the confines of that vendor’s OOTB solution. Thinks workflows, approval processes, contract templates and more – all needing alterations to fit the format of the provider, not the other way around.  

Each business is unique. While there may be broader industries that organizations can fit into, at the end of the day, the internal policies, procedures, contract language, and even solutions or offerings differ for every company out there – that’s why your business exists! When vendors design a CLM platform that only works within rigid confines, they’re insinuating that they’re not only the experts at CLM, but also the expert of your contracting process.  

What else is between the lines? A quick implementation turnaround also more often than not means a lack of training resources for your team. The software might be live, but is it any good if no one uses it?  

When Paris-based hospitality and hotel company Accor began their search for a replacement CLM platform, they created a list of 100 things they didn’t like about their legacy system. One of the top concerns about the existing platform? Teams didn’t actually use it. With lackluster training offered during implementation, many users reverted back to their old processes, rendering the legacy CLM platform useless. 

Agiloft’s award-winning, no-code platform admittedly comes with a longer implementation timeline than some other providers on the market, but it also comes with three significant benefits:  

• A 99% implementation satisfaction rating  

• A team of dedicated training experts  

• Access to an admin-certifiable program 

• The ability to flex Agiloft’s system to meet the needs of their respective organization, not the other way around.  

Myth #2: A good CLM is known for an intuitive, user-friendly User Interface (UI)

You may be thinking: “of course a good CLM has an intuitive, user-friendly UI that anyone in your organization can use.” You’re not wrong! However, the “myth” lies in what some vendors aren’t saying. 

Similar to the allure of so-called “quick” go-lives, users equate intuitive and user-friendly UIs with quick and successful product adoptions, easy scalability and growth, and a modern, cutting-edge CLM experience.   

The reality: Some platforms use a shiny UI to hide lackluster features

Terms and phrases like “intuitive,” “user-friendly,” and “easy scalability” tend to imply an overall lack of flexibility and customization. The platform may be “user friendly” because there are only a finite number of ways for users to streamline their contracting process. Once again, this means users are forced to change their processes to meet the capabilities of the software, as opposed to the other way around.

A modern, cutting-edge UI? It’s certainly a wonderful thing to have! But users shouldn’t forget to dig a little deeper. Some software providers highlight a flashy UI the same way a magician uses smoke and mirrors. Ensure that the platform’s actual capabilities are what you need behind the pretty UI and you’re not in a “pay no attention to that man behind the curtain” situation. 

Agiloft’s Data-first Agreement Platform is indeed intuitive and user-friendly, but part of that functionality comes with a no-code builder that allows users to modify the OOTB functionalities. Maybe you belong to a large, global organization hoping to create a branded self-service contracting portal. With Agiloft, users can build something intuitive and user-friendly for the contract requestor, while also taking the time to completely personalize the experience to fit your organization’s unique business needs. This no-code builder is Agiloft’s way of allowing users behind the curtain themselves, gaining full control over their CLM experience.  

Myth #3: A good AI-powered CLM should (or can) replace contract managers or part of the legal team 

AI is the future; it’s become woven into our day-to-day lives and it’s undeniably here to stay. Tech vendors across all industries are promoting their AI-powered solutions, touting capabilities that are supposedly just as good, if not better, than their human counterparts. It can be easy to get distracted by the AI hype and fall into the myth that AI agents are going to replace us all, but let’s dig a little deeper.  

The reality: A 100% AI-powered solution, without humans in the loop, simply doesn’t exist in today’s market. 

You heard that right. Any CLM vendor claiming to offer an AI-powered solution that can fully replace contract reviewers, managers, and others from your overall workflow…probably can’t (and shouldn’t).

AI is evolving quickly and improving every day, but it also continues to suffer from hallucinations and can be difficult to standardize on a large scale if outputs differ. Agentic AI is on the rise, but you still have to be strategic.  

Truly, the most impactful use of AI depends on your organization, what your dream contract workflow might be, or where those points of friction lie today. It’s also why “AI-powered” is often a phrase to avoid.

A CLM platform is most effective when it’s been created to expedite, improve, and enrich your current contracting process. The promise of “AI-powered” solutions implies easy scalability and fast setups; it means users leverage AI where and how the vendor sees fit, not the other way around. And the differences between organizations ultimately alter the ways those individual users can benefit from AI.  

For example, if contract and legal teams are bogged down answering questions about contracts, AI solutions like Agiloft’s AskAI empower users outside of legal to ask questions about their contracts and contract database. AskAI responds while specifically referencing where the answer was derived, so users can have confidence in their answers. Similarly, organizations struggling with lengthy review times may find use in Screens by Agiloft, which performs an initial contract review of contracts of any type based on playbooks designed by your team.  

Andy Wishart, Agiloft’s Chief Product Officer, explains the ideology behind good AI prompting: “It’s not ‘explain it to me like I’m five,’ but more, ‘explain it to me to a ‘t.’”  

At the end of the day, AI works better when teams take the time to customize it and tell it exactly what you want it to do – a “power” that is ironically missing in many “AI-powered” solutions.  

The ultimate reality: Teams looking to transform their contracting process with a CLM platform need a trusted software partner, not just a software provider. 

If there’s one thing that sets Agiloft apart from other CLM providers on the market, it’s the understanding that we might know CLM software, but you know your business and its unique needs. With a trusted partner like Agiloft, teams can truly dive deep into their contract problems and leverage our team of CLM experts to create a solution that delivers value, is used by your team members, and is enhanced by AI wherever and however you see fit.  

It’s time to advance the AI conversation from theoretical to practical. Learn more about Agiloft’s end-to-end AI solutions today.