AI adoption in legal processes could trim contract handling time by 73%, maximizing efficiency, yet many organizations still cling to manual methods.

In a recent survey conducted by SpotDraft, an AI-driven contract lifecycle management platform serving over 400 organizations globally, it was revealed that the legal industry is on the brink of a digital transformation. The survey, which included 115 in-house legal departments across various industries and company sizes, has shed light on the potential benefits and challenges of adopting AI and automation in legal processes.

The survey found that most legal teams are already experiencing savings of between one and five hours per week through AI adoption. However, half of the surveyed teams are ready to embrace automation, while the other half remains hesitant. This divide in readiness could be a significant factor in the industry's digital maturity, as companies that automate their legal processes show faster growth, according to Akshay Verma, COO of SpotDraft.

The survey identified clear patterns between digital adoption and business performance. Fintech and IT industries showed stable 20-21% year-over-year growth, while manufacturing companies showed only 10% revenue growth, and media and entertainment companies showed 7% growth. This trend suggests that digital transformation could be a key driver for business success in the future.

One of the key areas where AI is making a significant impact is contract management. Shashank Bijapur, CEO and co-founder of SpotDraft, stated that legal teams are working with tools that weren't designed for today's contract volumes and complexity. Bijapur added that AI-powered contract management fundamentally improves how legal teams operate, allowing them to focus on high-value strategy and risk assessment instead of spending weeks on routine document handling.

The survey also found that only 12% of the surveyed legal teams have achieved full automation of their contract processes. This indicates a significant opportunity for growth and efficiency gains for legal teams that adopt AI and automation.

Interestingly, the survey did not include any SpotDraft customers to ensure unbiased results. Companies in the legal industry most interested in AI-supported contract management tools include DocuSign and LEGANTA, which focus on intelligent agreement management and transforming contracts into executable operational logic. These tools are being leveraged by industries for process optimization, showing solid revenue growth driven by AI functionalities. DocuSign, in particular, demonstrated strong revenue growth and cash flow due to AI-driven contract management features.

Despite the potential benefits, the survey also highlighted challenges. Nearly 90% of the surveyed legal teams rate their contracts as moderately or highly complex, yet many lack the tools to handle this complexity efficiently. Furthermore, 80% of legal teams take a week or more to close standard contracts like NDAs, with some taking 15+ days for routine agreements. This inefficiency could be a significant bottleneck for businesses that rely on quick contract turnaround times.

However, there is a silver lining. 80% of legal teams expect to transition from reactive support to strategic, tech-driven roles within the next 12 months. This shift could position legal teams as key drivers of business growth and innovation, rather than mere support functions.

Organizations can access the full survey findings and benchmarking insights at https://www.spotdraft.com/benchmarking-report-2025. The global legal technology market is projected to reach over $60 billion by 2032, driven by AI, cloud solutions, and contract management tools. The future of legal teams seems to be increasingly intertwined with technology, and the benefits of embracing this change are becoming increasingly clear.

AI adoption in legal processes could trim contract handling time by 73%, maximizing efficiency, yet many organizations still cling to manual methods.