I Called It: The Rise of AI Contract Tools is a Shot Across the Bow of CLMs

Eight months ago, I posted a thought-provoking question:

Would storing fixed metadata in CLM systems even matter once an LLM could instantly train on a contract repository?

At the time, OpenAI was preparing to release Context Connector, allowing ChatGPT to pull data directly from platforms like Google Drive and OneDrive. That shift made me wonder whether the traditional contract lifecycle management (CLM) model, built around structured metadata and static repositories, was about to become obsolete.

The biggest challenge back then? Vector database limitations. AI needed a way to retrieve legal documents efficiently, accurately, and at scale without hallucinating or losing key context. But I also predicted that every major CLM player would be forced to integrate GenAI into their platforms to stay competitive.

Now, just months later, we’re seeing exactly that play out.

AI Contract Search Have Arrived

Legal AI startup Ivo just announced Search Agent, a feature that enables legal teams to instantly scan and retrieve insights from their entire contract repository—without needing rigid metadata tagging or folder structures.

“Search Agent enables organizations to automatically scan their entire library of previously-agreed contracts,” Min-Kyu Jung, Ivo’s CEO and co-founder, told Forbes.

This is a direct challenge to traditional CLMs. Instead of manually categorizing contracts and relying on structured fields, AI can dynamically surface key obligations, risks, and precedents within seconds.

This isn’t Ivo’s only play in this space. Their AI-powered redlining tool is also making waves. Rather than automating generic clause replacement, Ivo’s approach mimics the best human contract reviewers—ensuring edits are both precise and strategically sound.

“The key with our technology is we think it offers the most accurate and surgical redlining,” Jung explained.

Meeting Min-Kyu in 2022 & The Vision for AI in Legal Ops

I met Min-Kyu Jung back in November 2022—and ironically, our first conversation wasn’t even about AI contract review. It started with rugby.

"This is the first time I've come across a non-Kiwi All Blacks fan!" he told me.

From there, we got into legal tech. Min-Kyu, with his background as a corporate lawyer, was frustrated by how manual and slow contract review remained. Fast forward to today, and he’s now leading a startup that’s raised $16 million in Series A funding and is expanding rapidly with clients like Canva, Weight Watchers, and Pipedrive.

That early conversation stuck with me because it was clear he understood something fundamental:

Lawyers don’t want software that just automates existing processes—they want tools that change how they interact with contract data.

And that’s exactly what we’re seeing unfold.

Why This Is a Wake-Up Call for CLMs

For years, the CLM market has been defined by:

? Centralized contract storage

? Predefined metadata and structured tagging

? Static templates and workflow automation

But the rise of AI-powered contract search and redlining changes everything.

Three Reasons CLMs Need to Adapt Fast

Metadata is Becoming Less Relevant

AI can now understand, retrieve, and analyze contracts dynamically, making rigid metadata structures less necessary for search and reporting.

Redlining is No Longer Just Automated, It’s Intelligent

Tools like Ivo’s redlining engine don’t just automate changes, they ensure edits align with strategic business goals, minimizing unnecessary negotiation friction.

Legal Teams Want Answers, Not File Structures

Instead of sifting through folders, categories, and metadata fields, legal teams increasingly just want AI-powered contract intelligence.

At Quora, Ivo’s AI reduced first-pass NDA review time from 11 hours to 5 minutes.

That’s not just an improvement, it’s a fundamental shift in how legal work gets done.

What’s Next for the CLM Market?

Ivo’s Search Agent and AI-powered redlining aren’t just new features—they’re signs of where contract management is headed. The traditional CLM model built around structured metadata, predefined workflows, and static storage, needs to evolve.

The real question now is:

Will legacy CLMs adapt, or will they be disrupted?

One thing is certain, AI isn’t just eating contract management. It’s reinventing it.

Would love to hear from others in legal tech. Do you think AI-driven search and redlining will make traditional CLMs obsolete, or will they find a way to evolve?