What is CLM?
Contract lifecycle management (CLM) is the process, and the software, for handling contracts from request and drafting through negotiation, approval, signature, obligation tracking and renewal.
In more detail
A contract passes through stages: intake request, drafting from a template or clause library, negotiation and redlines, internal approval, e-signature, storage with key data extracted, tracking of obligations and renewals, and eventually amendment or termination. A CLM system provides the repository, templates, approval workflows and reminders. Many companies skip CLM and run on shared drives and email, which works until renewal dates and non-standard clauses get missed. AI adds extraction of dates, parties and clauses from existing contracts, flags deviations from standard terms and drafts first-pass summaries for a lawyer to review. Legal keeps authority over what is accepted or signed. We don't build tools that give legal advice or sign on a company's behalf.
Example
Procurement uploads 300 legacy supplier agreements. Extraction pulls renewal dates, notice periods and auto-renew clauses, and each contract owner gets an alert 90 days before the notice deadline on any agreement that renews automatically.