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ai contract analysis
6 min read

How AI Contract Analysis Can Impact Time to Value and Why That Matters

Evaluating a contract management solution with AI contract analysis can make an already difficult process more complex. Even though AI is really good at taking on the tedious parts of legal tasks, it can take a while to bring it up to speed. 

Part of assessing any solution is knowing within an inch of a dollar what your return on investment (ROI) will be and how long it will take you to realize this value. 

In a time when every dollar counts, you always want to opt for tools with high ROI and low time to value (TTV).

High TTV means you spend longer paying for the software before you realize any savings or earnings from it. Time to value should be a few weeks at most, but some contract lifecycle management (CLM)  with AI contract analysis can take even longer.

Why CLM with AI contract analysis can have a long TTV

AI is powerful and capable of incredibly complex tasks. But despite being a computer program, machine learning and natural language processing (NLP) AI still needs to “study” before it can do anything useful. 

That’s why Eliana Lee, Legal Engineer at LinkSquares, says this AI should be called “machine training” instead of “machine learning.”

Training takes time

Training AI can take a long time because there is a lot that it has to “learn.” If it’s going to be any good, CLM with AI contract analysis needs to know the convention of your contracts inside and out, which could take months or years for new AI.

Lots of (and very complex) contracts to learn from

Learning takes even longer if you have a lot of contracts or if they’re very complex. This means there’s even more data for AI to parse and learn from and a higher volume of outputs for lawyers to evaluate and correct. 

legal operations

Evaluating CLM software for low TTV

If a CLM vendor can’t tell you how long TTV is or if the TTV is longer than a few weeks, you might need to walk away and find another solution — one that won’t eat into your ROI. 

Here are some things to look for to make sure you get value for your money.

Pre-trained AI

The best AI contract analysis solutions come pre-trained on your contracts and already speak your language. So, you don’t have to start from scratch to see a faster TTV.

Optical character recognition (OCR)

If your contracts have to be scanned and uploaded, OCR technology transforms your contracts into a machine-readable format, making it easier for AI to pick up on the content of your agreements.


CLM software with AI contract analysis shouldn’t have a TTV of longer than a few weeks. Anything longer than that will decrease your ROI and cost your legal department in the long run. See how LinkSquares AI helps get your teams up to speed in a short time. Request a demo today.

Alyssa Verzino is a Senior Content Marketing Manager at LinkSquares.