Gartner says, AI-derived business value is forecasted to reach as much as $3.9 trillion in 2022 and has already crossed the trillion-dollar mark. This number alone demonstrates that if you are not harnessing AI today, you are already lagging behind. Companies across sectors have awakened to the advantages of Artificial Intelligence to achieve excellence in their products and services. AI has been transforming businesses like never before and companies need to adopt AI in order to remain valid and competitive in today’s fiercely competitive market. This is applicable for contract management as well. Where, previously digitized contract management was limited to cloud storage and centralized digital repository, today, with AI at its core it encompasses a lot more including analytics, parsing, forecasting and reporting amongst others.
The most pressing question for organizations when it comes to adopting Artificial Intelligence powered contract management solutions is whether to buy the software/product or build it inhouse. This is especially true for large companies with a big workforce, where building a solution is often an option. With AI in the picture, this question becomes much more complex considering the sophistication of technology and resources required to successfully create and implement an AI-powered contract management solution.
For building an AI-powered CLM Software in-house, you need to have a team of machine learning engineers and data scientists dedicated to this one cause alone. This is mostly possible only if you are an AI company at the core and have such AI experts handy. If AI is not your company’s single-core competency then here are 4 reasons why it makes more sense to buy your AI CLM capability:
1. Finding the appropriate talent
Despite the rapid growth in AI industry in the past decade, the AI talent pool is limited and in high demand. Finding the right talent is an expensive and time-consuming process considering all enterprises specializing in AI have already acquired the crème de la crème of AI experts leaving the newbies with a limited pool to choose from. Furthermore, understanding the requirements of a sophisticated contract management solution in order to build one adds to the complexity of finding the appropriate resources.
2. Having the necessary infrastructure
Computing power and analytic tools are crucial to scaling any Artificial Intelligence project. The investment, cost and hassle of building, managing and updating the IT backend infrastructure and compute power as volumes grow and technologies evolve can be immense. Post deployment, maintenance and updating of the CLM solution is another challenge that the businesses must tackle.
3. Time constraints
Building an AI-powered CLM is a time-consuming process with the possibility of timelines extending due to the complex nature of the project. Moreover, while considering the time taken, businesses must also consider the time involved in finding the right team of experts and the budget approvals at each of the stages. All of this put together can lead to delayed time to market causing companies to lose their competitive advantage.
4. Keeping up with continuous Innovation
Artificial intelligence is constantly evolving with new concepts and studies being introduced in the market every day. It is a daunting task to stay updated with all innovations in AI CLM in order to ensure the product offers best-in-class AI capabilities. It needs a dedicated team of R&D experts to understand and incorporate any AI innovations in the CLM product, calling for a lot of investment and dedicated top notch resources.
These reasons alone are enough to weigh your preferences towards buying AI powered CLM over building it in-house. Apart from the time, cost and resources saved, the other benefits of buying AI powered CLM from a dedicated market expert are:
- Customized solution for every requirement with easy scalability
- Continuous innovation due to the competitive nature of the market
- Shared expertise and infrastructure
- Great customer service and maintenance post deployment
- No large risks or upfront investments
- Network effect of AI learning from the expert’s entire customer base
To know more about how Ultria AI driven CLM can help you achieve speed and control across your contract lifecycle, book yourself a complimentary seat at our upcoming webinar: AI in Contract Management: Fact, NOT Fiction!