New SpotDraft survey reveals 49% still rely on email and Word documents, despite legal industry’s rush toward automation

Legal departments could slash contract processing time from 19 days to just 3 days and ultimately improve efficiency by 73% using automation, yet the majority continue using manual processes that create significant business bottlenecks, according to a new survey from SpotDraft.

While recent industry data shows 80% of law firms are adopting AI tools, SpotDraft's 2025 Contract Efficiency Benchmarking Survey, conducted among 115 in-house legal departments, found that 49% of legal teams still manage contracts using email, Word documents and shared folders. The findings highlight a striking disconnect between widespread technology investments and fundamental contract management processes, which remain largely unchanged.

Efficiency Gaps Create Operational Bottlenecks

The survey findings expose how outdated contract management processes create cascading business delays:

• 56% of legal teams take a week or more to close standard contracts like NDAs, with some taking 15+ days for routine agreements
• Only 12% have achieved full automation of their contract processes
• Nearly 90% rate their contracts as moderately or highly complex, yet many lack the tools to handle this complexity efficiently
• Contract volumes are rising across industries, with Consulting (48%) and EdTech (33%) leading growth.

“Legal teams are working with tools that weren't designed for today's contract volumes and complexity,” said Shashank Bijapur, CEO and co-founder of SpotDraft. “When routine NDAs take weeks to complete, that's revenue sitting on the table. Organizations can't afford to have their growth constrained by manual contract processes.”

These findings align with broader industry data showing that 75% of in-house counsel are dissatisfied with their existing contract workflow technology, according to Bloomberg Law, and 53% of organizations with enterprise contract management systems are considering switching providers.

Performance Disparities Across Industries

The survey identified clear patterns between digital adoption and business performance. Fintech and IT industries, which lead with 3-4 day contract turnaround cycles, also show stable 20-21% year-over-year growth. Meanwhile, manufacturing companies with lower automation adoption show only 10% revenue growth, while media and entertainment companies lag further with just 7% growth.

“The data shows a clear correlation between digital maturity and business outcomes,” said Akshay Verma, COO of SpotDraft and former legal operations leader at Meta and Coinbase. “Companies that automate their legal processes aren't just working faster, they're growing faster too.”

“Contract volumes are growing and agreements are becoming more complex, but legal teams are still managing them with the same outdated tools,” Bijapur added. “AI-powered contract management fundamentally improves how legal teams operate. Instead of spending weeks on routine document handling, they can focus on high-value strategy and risk assessment.”

Legal Departments Prepare for Change

Despite current efficiency gaps, the survey reveals legal teams' recognition that change is inevitable:

• 80% of legal teams expect to shift from reactive support to strategic, tech-driven roles in the next 12 months
• Half of teams show readiness to embrace automation, while the other half remains hesitant
• Business stakeholders increasingly demand self-service capabilities for routine contracts

This transformation comes as previous SpotDraft research shows that 87% of daily AI users in legal roles report productivity gains, with most legal teams saving between one and five hours per week through AI adoption. Meanwhile, the global legal technology market is projected to reach over $60 billion by 2032, driven by AI, cloud solutions, and contract management tools, according to SNS Insider research.

About the Survey

SpotDraft's Contract Efficiency Benchmarking Survey was conducted among 115 in-house legal departments across various industries and company sizes to benchmark contract management maturity and identify strategic improvement opportunities. The survey included no SpotDraft customers to ensure unbiased results. Organizations can access the full survey findings and benchmarking insights at https://www.spotdraft.com/benchmarking-report-2025.

About SpotDraft

SpotDraft is an AI-driven contract lifecycle management platform built for in-house legal teams. Serving over 400 organizations and cross-functional teams globally, the company helps legal teams optimize time-consuming processes, refocus on strategic outcomes, and maximize their impact through a contract lifecycle.

Founded in 2017 by Harvard Law School alumnus Shashank Bijapur and Carnegie Mellon graduate Madhav Bhagat, SpotDraft has been recognized in Fast Company's Most Innovative Companies list and Forbes Asia's 100 To Watch.

The company recently raised $54 million in Series B funding led by Vertex Growth and Trident Growth Partners, and is supported by prominent investors including Xeed Ventures (formerly 021 Capital), Arkam Ventures, Prosus Ventures, Riverwalk Holdings and esteemed angel investors like Girish Mathrubootham and Satyen Kothari.

SpotDraft is headquartered in Bengaluru, India with an office in New York, USA. For more information, visit www.spotdraft.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250820510824/en/

"When routine NDAs take weeks to complete, that's revenue sitting on the table. Organizations can't afford to have their growth constrained by manual contract processes"