Managing contracts in 2025 is all about efficiency, security, and compliance. Here’s a quick summary of the best practices to modernize your contract management processes:
Use Cloud Storage: Centralize documents, enable remote access, and improve security with encryption and access controls.
Apply AI Tools: Automate contract reviews, flag risks, and improve accuracy with AI-driven insights.
Create Standard Templates: Streamline processes with reusable templates for consistency and reduced errors.
Set Up Automated Workflows: Speed up approvals, reduce delays, and improve collaboration with automated systems.
Meet Legal Standards: Stay compliant with evolving regulations like the EU AI Act and industry-specific requirements.
Monitor Deadlines: Use automated alerts to track renewals, payments, and obligations, avoiding costly mistakes.
Go Digital-First: Adopt e-signatures, digital verification, and AI tools to simplify processes and reduce paper usage.
Why It Matters
These practices help businesses save time, cut costs, and stay compliant in an increasingly digital and regulated world. Whether you’re in hospitality, renewable energy, or any other industry, adopting these strategies ensures smoother operations and better contract management.
Key Tip: Combine AI tools with human oversight for better accuracy and efficiency.
Ready to dive deeper? Let’s explore each practice in detail.
What is Cloud Contract Management & Why You Shouldn’t Overlook It
1. Use Cloud Storage for Contracts
Cloud storage makes accessing contracts easier while improving security measures.
Centralized Access and Organization
With cloud storage, all contract documents are stored in one place. This means teams can quickly access agreements from anywhere with an internet connection. Yiannis Karavassilis, COO of CloudKid, shared: “Before using Trackado, managing our contracts was frustrating. We had a structure in place to store our contracts, but we didn’t have a nice overview which also gave us timely notifications of when they were expiring” [1].
Stronger Security Measures
Modern cloud storage platforms come with advanced security features, such as:
Security Feature
Purpose
TLS/SSL Encryption
Protects data during transfer
Two-Factor Authentication
Prevents unauthorized access
File Encryption
Safeguards stored documents
Access Controls
Regulates user permissions
To make the most of these features, follow these steps:
Set Clear Access Rules: Define who can view and share documents. Regularly review permissions and remove unnecessary third-party access.
Enable Security Features: Turn on alerts for account activity, like new logins, and require two-factor authentication for all users [2].
Practice Digital Clean-Up: Regularly check for unused devices with access and ensure deleted files are permanently removed from recycle bins [3].
Cloud storage also reduces expenses by eliminating the need for physical storage and software installations, allowing businesses to allocate resources more effectively.
Industries with complex contract management needs, such as hospitality with vendor agreements or renewable energy firms handling detailed power purchase contracts, can benefit from the accessibility and efficiency of cloud solutions.
This move to digital storage not only simplifies contract management but also strengthens security, making it a solid foundation for adopting AI-driven contract reviews in the future.
2. Apply AI Tools for Contract Review
Cloud storage has already made contract management more secure and accessible. Now, AI takes it a step further by simplifying contract review processes, reducing manual labor, and improving accuracy. By using tools powered by machine learning, natural language processing, and predictive analytics, businesses can make contract management faster and more efficient.
Automated Analysis and Risk Detection
AI can quickly scan contracts to highlight key terms, flag potential risks, and spot unusual clauses that may need extra attention. This allows legal teams to focus on complex matters instead of repetitive tasks.
Here’s how AI features can make an impact:
AI Feature
How It Helps Businesses
Clause Recognition
Identifies and organizes standard contract elements
Risk Assessment
Highlights potential compliance issues and legal risks
Term Comparison
Reviews deviations from standard templates
Language Suggestions
Recommends alternative wording based on company preferences
Improved Review Efficiency
To get the most out of AI for contract review, consider these steps:
Define Measurable Goals
Set clear objectives for AI implementation to track its success and justify the investment.
Plan Integration
Make sure AI tools work seamlessly with existing systems like CRMs and document management platforms. This ensures smooth data flow and maintains operational efficiency.
Prioritize Security
Protect sensitive contract data with strong security measures, such as encryption, access controls, and regular audits.
Practical Tips for Implementation
Studies show that combining AI with human oversight is 83% more effective than relying on automation alone. To maximize this advantage:
Train your team to use AI tools effectively
Regularly update AI models with new contract data
Monitor performance and gather user feedback
Keep humans involved in critical decision-making
Using AI in contract review builds on digital strategies to boost productivity and accuracy.
3. Create Standard Contract Templates
Using standard templates alongside cloud storage and AI-driven reviews can streamline the contract process, ensuring uniformity and cutting down on manual errors.
Why Use Standard Templates?
Standard templates offer clear advantages when managing contracts:
Area of Improvement
Benefit
Time Efficiency
Speeds up the contract creation process
Error Reduction
Reduces the risk of inconsistent terms
Cost Savings
Cuts down on legal review and administrative costs
Compliance
Helps meet regulatory requirements
Consistency
Ensures uniform terms across teams or departments
How to Implement Standard Templates
Follow these steps to make the most of standardized templates:
Review Current Contracts
Examine your existing contracts to identify recurring patterns and needs. Good Energy offers a great example of this approach:
“With Trackado, we were able to analyze and draw insights from our contract library, seeing common types of contracts and being able to draw efficiencies from this.” – Peter Skeen, Head of Legal, Procurement and Company Secretarial, Good Energy [4]
Create Core Templates
Develop templates for commonly used contracts, such as:
Service agreements
Non-disclosure agreements
Purchase orders
Employment contracts
Supplier agreements
Allow Flexibility
Add modular clauses to your templates so they can be customized while maintaining consistency. Include optional sections and variable fields to address specific needs or legal requirements.
Keeping Templates Up to Date
To ensure your templates remain useful and compliant:
Schedule regular reviews to assess their effectiveness.
Update terms as regulations change.
Gather feedback from legal and business teams.
Keep a record of template versions and any modifications.
Enhancing Templates with Smart Features
Modern templates can include advanced features like:
Dynamic fields for auto-filling data
Built-in compliance checks
Version control systems
Triggers for approval workflows
These templates not only streamline current processes but also set the stage for automating contract management in the future.
4. Set Up Automated Workflows
Automated workflows can make contract management faster and more efficient by speeding up approvals, reducing delays, and improving team collaboration. With standardized templates and AI-assisted reviews, these workflows integrate seamlessly into your digital contract processes.
Key Benefits of Workflow Automation
Benefit
Impact
Processing Speed
Speeds up contract completion times
Error Reduction
Cuts down on manual data entry mistakes
Compliance
Keeps approval processes consistent
Team Efficiency
Improves collaboration across teams
Cost Savings
Lowers administrative costs
Essential Workflow Components
Automated workflows rely on several key components to ensure smooth operations. These elements build on earlier strategies to create an efficient, digital-first approach:
Document Generation: Automatically create contracts using data from pre-designed templates, saving time and reducing errors.
Approval Routing: Set up a tiered system where simpler contracts go through managerial review, while more complex or high-value contracts are escalated to directors or legal teams.
Notification System: Use automated alerts for tasks like review reminders, escalation notices, status updates, and deadline warnings. These notifications integrate with your broader contract management systems.
Integration Capabilities
To get the most out of automated workflows, connect them with tools like e-signature platforms, financial management systems, CRMs, and ERP software. These integrations help streamline processes even further.
Best Practices for Implementation
Begin with straightforward workflows and gradually add complexity.
Clearly document automation rules and approval structures.
Provide training to ensure team members understand the new processes.
Regularly evaluate and improve workflow performance.
Keep detailed audit trails of all automated actions for transparency and compliance.
Advanced Automation Features
Smart Clause Selection: AI tools that recommend clauses based on the contract’s context.
Conditional Logic: Automatically route contracts based on specific parameters or conditions.
Real-time Analytics: Track performance and fine-tune workflows for better results.
5. Meet Legal and Industry Standards
While digital tools make contract management more efficient, staying aligned with legal and industry standards is essential. The legal landscape is evolving quickly, particularly in areas like AI regulations and corporate responsibility.
AI Compliance Requirements
The EU’s AI Act, coming into effect in 2025, introduces a framework for classifying AI risks. To comply, organizations will need to:
Conduct detailed risk assessments
Maintain transparent reporting practices
Apply safeguards based on risk levels
Keep records of AI-driven contract processes
Corporate Responsibility Standards
Modern contract management also needs to address corporate responsibility. European companies are encouraged to adopt measures like:
Requirement
Implementation Strategy
Vendor Assessment
Perform regular audits to ensure supplier compliance
Environmental Reporting
Track and document greenhouse gas emissions and related metrics
Policy Disclosure
Clearly outline corporate responsibility policies in contracts
Compliance Monitoring
Regularly review and update practices to meet standards
These practices are part of a larger global trend towards stricter compliance measures.
Global Regulatory Considerations
International regulations are also shaping compliance requirements. Countries like Brazil and Japan are introducing new guidelines that impact:
Data privacy management
Standards for AI development
Handling of customer information
Cross-border contract obligations
Practical Compliance Steps
1. Risk Assessment Protocol
Carry out detailed risk assessments for contracts, including due diligence when choosing digital solution providers.
2. Documentation System
Set up a centralized system to store key documents like regulatory certificates, audit trails, policy updates, and compliance reports.
3. Regular Updates
Keep up with changing regulations by subscribing to legal updates, joining industry groups, consulting experts, and providing regular compliance training.
Advanced Monitoring Tools
Use advanced tracking tools to:
Stay updated on regulatory changes in real time
Identify potential compliance risks
Automate compliance reporting
Monitor important deadlines
This structured approach helps ensure your contract management processes meet legal and industry standards while staying flexible enough to adapt to new regulations.
6. Monitor Contract Deadlines
Keeping track of contract deadlines is crucial to meeting obligations and avoiding expensive mistakes. Modern tools can now automatically track key dates, making this process much easier and more reliable.
Automated Alert Systems
AI-driven tools can automatically identify and track important dates, such as:
Renewal deadlines
Payment schedules
Performance milestones
Compliance checks
Review periods
The Impact of Automation
Using automated systems for monitoring deadlines has been shown to reduce contract management time and to result in savings for organizations, These systems help ensure no deadlines are missed, leading to smoother operations.
How to Implement Monitoring Effectively
Monitoring Component
Strategy
Outcome
Milestone Tracking
Use automated tools for key dates
Avoid missed deadlines
Task Assignment
Assign responsibilities to the team
Ensure accountability
Alert System
Set up tailored notifications
Stay ahead of deadlines
Performance Monitoring
Track obligations regularly
Spot and resolve issues early
Real-Life Example
“Managing our registered patents always gave us a headache. With Trackado we finally have all data in one place and get automatically alerted about required renewals so that we can focus on building bikes.” – Oliver Römer, Managing Partner, tout terrain [5]
Tips for Managing Deadlines Effectively
Centralize Your System
Use one platform to manage all contract deadlines and milestones.
Conduct Regular Reviews
Periodically check for accuracy in captured dates.
Streamline Notifications
Make sure alerts are sent automatically to the right people.
7. Implement Digital-First Contract Practices
With legal departments focusing on digitizing manual processes, adopting digital-first contract practices has become a priority. These practices build on earlier innovations like cloud storage and AI-driven reviews, making contract management faster and more efficient.
Digital Identity Verification
Digital identity verification plays a key role in contract management by:
Protecting sensitive information
Simplifying the signing process
Ensuring compliance with regulations
Minimizing fraud risks
AI-Enhanced Contract Management
AI tools take digital contract management to the next level by:
Spotting potential risks in contracts
Highlighting commercial opportunities
Assessing compliance issues
Reducing Paper Usage
Switching to digital contracts helps cut down on paper use, which directly impacts the environment.
Seamless Collaboration
Digital contracts integrate easily with workplace tools, making team collaboration smoother. Popular tools include:
Digital practices have transformed how contracts are managed.
“Trackado is the best value product we have. In terms of being value for money, it’s the best thing we ever brought into the business.” – Andrew Parkinson, Procurement Manager, Good Energy [6]
Contract Lifecycle Management (CLM) tools are no longer just for large corporations. Small and medium-sized businesses can now access these tools, benefiting from advanced features without compromising on security.
This shift towards digital practices boosts efficiency and compliance, complementing earlier cloud and AI strategies.
Conclusion
By following the seven practices discussed earlier, organizations can now position themselves to streamline and secure their contract management processes. As we move through 2025, contract management is evolving at a rapid pace, and these strategies provide a solid foundation for modernizing workflows.
Boosting Efficiency
AI-powered tools have transformed contract management, cutting down manual tasks. Today’s platforms integrate document management, workflow automation, analytics, and compliance tools, helping businesses achieve smoother operations.
Staying Compliant
With regulations constantly changing, effective contract management must include automated compliance checks, continuous monitoring, and detailed audit trails. These measures ensure organizations can adapt to new rules while maintaining data security through zero-trust systems.
Tailored Benefits for Industries
Sectors like renewable energy and hospitality, where contracts are often complex, are seeing specific advantages from adopting these practices. Advanced management tools are helping these industries tackle their unique challenges.
Preparing for the Future
AI is rapidly becoming a standard tool in business operations. Moving beyond simple predictive analytics, it’s poised to revolutionize how organizations manage information. By streamlining these processes, AI significantly cuts down on both time and costs associated with traditional workflows.
Smarter Decisions with Data
Digital-first approaches, including cloud and AI-driven workflows, bring three major advantages:
Better Data Visibility: Clearer insights across departments lead to more informed decisions.
Stronger Risk Management: AI tools provide ongoing monitoring and alert businesses to potential issues early.
Streamlined Operations: Cloud storage, AI reviews, and automated workflows create an efficient and connected environment.
These methods equip organizations to tackle new challenges while improving efficiency and staying compliant with regulations.
Want to know more about how Trackado’s features can help your company enhance your contract management?
