What is document automation – See how automated pre-sign operations shape the future of contract management

As digital contract management becomes the standard across industries, selecting a tool that supports all contract lifecycle phases is crucial. While powerful solutions exist for secure e-signatures and post-sign contract archiving, the pre-sign stage – covering the creation and composition of the contract document – is often the least addressed, despite its importance.

This phase can be highly labor-intensive, requiring extensive input from legal and other experts to ensure accuracy and compliance. What if much of this work could be automated? Document automation offers a solution by streamlining the drafting process, reducing manual workload, and ensuring consistency across contracts.

Document automation explained

Document automation refers to the use of technology to streamline the creation, management, and processing of contract documents, reducing the need for expert effort.

Automation eliminates the time-consuming and uncertain tasks of the pre-sign phase – finding the right template, filling in the correct information, and structuring the contract to fit its specific needs – by replacing them with predefined templates and smart workflows.

Automation minimizes human error, enforces standardization, and helps businesses comply with industry regulations. Rather than starting contracts from scratch, organizations can leverage automated processes to accelerate drafting, enhance precision, and reduce manual effort. Above all, legal teams no longer need to be involved every time a contract is created. Instead, business owners can generate contracts as a self-service and still consistently comply with the company’s legal playbook.

Unlocking efficiency: Document automation eliminates contract challenges

Manual contract creation presents several challenges that can slow down business operations. Document automation directly addresses these issues by offering structured, efficient solutions:

• Time-consuming manual processes → Faster contract drafting. Automation reduces the time required to create and process contracts by eliminating repetitive tasks. Teams can quickly generate standardized documents, ensuring they can finalize agreements faster.
• Risk of human error → Standardized templates ensure accuracy. Manual data entry is prone to errors, leading to inconsistencies and potential legal disputes. Automation ensures contracts are error-free, compliant, and follow a predefined structure, reducing legal risks.
• Compliance and legal risks → Built-in regulatory safeguards. Automated systems can incorporate regulatory requirements, ensuring contracts adhere to legal frameworks and corporate policies. This helps prevent compliance breaches and potential financial penalties.
• Inefficiency in collaboration → Automated workflows improve coordination. Automated workflows eliminate bottlenecks by notifying stakeholders when their input is required, streamlining communication between departments such as legal, sales, and procurement.
• Difficulty in tracking contract versions → Centralized storage and version control. A centralized document management system allows teams to track contract changes, store previous versions, and access real-time updates, ensuring transparency and eliminating confusion.
• Inconsistent branding and formatting → Ensures brand identity and professionalism. Automated document generation ensures that all contracts maintain a consistent look and feel, reflecting the company’s brand identity. Standardized templates enforce corporate branding, formatting, and tone, reinforcing professionalism in every agreement.

Document automation key users and ideal stakeholders

Document automation benefits various departments within an organization, each with unique contract creation needs:

• Legal Teams: Ensure compliance, reduce workload, and streamline contract drafting while maintaining oversight of risk and governance.
• Sales Teams: Quickly generate contracts and agreements, reducing delays and allowing deals to close faster without waiting for extensive legal approvals.
• Procurement & Finance: Standardize vendor agreements, improve negotiation efficiency, and enhance financial transparency.
• HR Departments: Automate employment contracts, NDAs, and onboarding paperwork, improving employee experience and reducing administrative workload.

Key capabilities to look for in a document automation solution

A practical document automation tool should address the complexities of contract creation by offering intuitive features that simplify the process while ensuring compliance, accuracy, and scalability. Here are the essential components every contract lifecycle management (CLM) tool should have:

• Advanced template management → A template library enables teams to create and manage standardized contract templates, ensuring consistency, brand alignment, and reduced manual drafting time.
• Automated workflows → Seamless approval chains and notifications keep contract processes moving efficiently, reducing delays in finalizing agreements.
• Collaboration and accessibility → Cloud-based access, role-based permissions, and integrated commenting features enable cross-functional teams to collaborate effectively, reducing reliance on back-and-forth emails.
• Scalability and ease of use → A no-code self-service interface ensures easy adoption and use, allowing businesses to scale their contract processes effortlessly without requiring technical expertise.
• Brand consistency and customization → Ensures contracts reflect company branding through predefined styles, formatting, and tone, maintaining a professional and cohesive brand identity across all agreements.

Conclusion – Contract drafting is going automated

Document automation is transforming the pre-sign phase of contract management by enhancing efficiency, accuracy, and compliance. By eliminating manual tasks and streamlining workflows, businesses can reduce risks, accelerate contract creation, and empower their teams to focus on strategic growth.

Organizations that adopt document automation gain a competitive edge by ensuring that contracts are created faster, managed efficiently, and stored securely. As the demand for agility and compliance continues to rise, automating contract drafting is no longer a luxury but a necessity for modern businesses.

Are you ready to streamline your contract creation process? Embrace document automation today and future-proof your business operations!

Curious to see Zefort in action? → Watch a demo here.