Closing the Contract Value Gap with People, AI, and Better Processes

Hearing about the billions being poured into AI-powered legal technologies intrigued me. LegalTech Hub recently identified more than 500 generative AI tools specifically for legal and contracting tasks. The promise was clear: faster processing, quicker sales cycles, and significant boosts in lawyer productivity.

On the surface, the results look promising. But as I’ve learned from my own AI journey, digging a little deeper reveals a surprisingly stubborn issue. Despite all this technology, a Deloitte survey reports that companies are losing an average of 8.6% of their contract value each year. 

So, what’s going on? Why hasn’t AI solved the problem of value leakage? The issue goes beyond just technology or efficiency. True value capture requires a different approach, one that blends advanced AI with human expertise and clear strategy. If we really want to protect the value in our contracts, we have to rethink how we can use these tools and the mindset we bring to the table. And no, it’s not just about doing things faster.

The Efficiency Mirage

When I first started exploring AI for legal work, the speed at which tasks were getting done was impressive. Recent studies show how lawyer productivity increased as high as 140%, with cycle times reduced by 24%. And these stats are hard to ignore. 

But here’s the twist: even with these improvements, contract value leakage still hasn’t been addressed. Companies continue to lose between 3% and 20% of their contract value annually. It’s apparent that speeding up individual tasks is just part of the equation, and it’s not enough if you want to deliver real, meaningful financial outcomes. 

I’ve come to realize that there’s a deeper issue–too many organizations focus too narrowly on isolated efficiencies. Some companies are optimizing individual tasks without considering how those tasks impact the broader picture. Efficiency alone does not guarantee that contracts will achieve their strategic goals or deliver lasting business value.

Why Architecture Matters

Here’s what I’ve learned: capturing real value from contracts means integrating multiple business functions into one cohesive strategy. Contracts are not just legal documents. These can impact every department from procurement to sales and finance. When we think about capturing value, we need to consider how every step in the process connects to broader business objectives. 

And that's where architecture comes in. By "architecture," I mean intentionally designing and linking every step of the contract lifecycle to strategic business goals. It's more than just speeding things up. It’s about building transparency and collaboration across departments to ensure that every contract is contributing to the bigger picture.

Think about it: contract approvals have sped up, but there is a gap in properly aligning them with procurement or sales. Sure, deals may get done faster, but important risks could slip through the cracks. Or even worse, opportunities may be missed. By contrast, an intelligently designed process makes sure every contract serves its purpose, aligns with the company’s strategic goals, and minimizes risk.

Human Expertise + Generative AI

AI is undeniably powerful, but it has limits. I’ve learned this firsthand, especially when dealing with complex language, context, or strategic implications. While AI is fantastic at handling routine tasks, human judgment remains essential for interpreting nuances, negotiating effectively, and managing risks that could make or break a deal. 

At Execo, we’ve seen just how impactful it is to combine AI with human expertise. Our team doesn't just rely on AI outputs. We verify and refine them to make sure they’re accurate and compliant. This human-AI collaboration is absolutely essential for making confident, effective decisions in real-world business scenarios.

Human oversight does more than catch errors. It ensures contracts align with strategic business goals, remain legally sound, and adapt flexibly to changing market conditions. Without this human touch, organizations risk overlooking subtle details that can lead to significant financial and reputational damage. 

The Future of Contracting is People and AI Together

I stand by the belief that the future of contracting isn’t just about adopting AI, but more about rethinking how people and technology interact. AI is not here to replace lawyers or contract managers. It’s here to supercharge their roles. AI frees up time from repetitive, low-value tasks, allowing legal professionals to focus on strategic thinking, problem-solving, creating value – the things that really matter, and frankly, the stuff that lawyers were ultimately trained to do. That means less admin work, higher engagement, and improved morale across the board. 

When smart workflows integrate AI thoughtfully, they help teams in prioritizing high-impact work and make better, faster decisions.