For the last three years, Gartner has observed a consistent inquiry volume trend that reflects sustained high levels of interest in the market.

The primary buyers for CLM solutions include legal, procurement, sales and IT departments. It is common for different departments to have different priorities, requirements and maturity levels when seeking a CLM solution. For this reason, this research focuses on common use cases that Gartner sees from all CLM buyers and on critical capabilities that focus on steps in the contract life cycle.

As CLM vendors compete for market share and differentiation in a densely populated market, Gartner has witnessed a push toward advanced contract analytics and generative AI to differentiate product offerings. Simple contract digitization is no longer a differentiator; depth, speed, accuracy and personalization of the extraction are where vendors now need to excel. Additionally, capabilities such as advanced contract analytics and contract risk analysis are continually evolving, and client expectations are growing.