This much we know: For CLM processes, fixed metadata1 is the backbone of effective contract management2 providing a uniform structure to capture critical details such as contract parties, effective dates, renewal terms and payment obligations. Such a structure ensures data accuracy essential for reporting, compliance, and analytics. Fixed metadata is also critical for seamlessly integrating with other platforms like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and financial systems – enabling organizations to streamline workflows and maintain consistency throughout all systems.
But this is the conundrum: technologies and tech-powered solutions have lifespans. With the advent of AI-based large language models (LLMs), CLM systems’ use of fixed metadata may be nearing the end of its lifetime. So, what does this mean for the future of CLM systems – and those looking to acquire, deploy, or upgrade a CLM?
First, we need to ask and answer a few questions…
Why does metadata matter so much?
Beyond the explanation above, metadata is not just about storage – it is about ensuring that accurate, actionable data is always available. Structured fields make it easy to filter or sort through large volumes of contracts without needing to process the full content each time. This reduces dependency on manual reviews by highlighting key details at a glance, enabling quicker decision-making.
For instance, if a company wants to review uplift clauses or price increase language to prepare for contract renewals, it will need fixed metadata to determine which contracts:
- have already been renewed without the uplift clause;
- are due for renewal in the next 30–90 days; and
- require reviewing the latest price increase language based on recent amendments
But in walks the LLMs – are they paused to defeat lawyers?
AI solutions for legal, including tools incorporating LLMs, are increasingly demonstrating they can go head-to-head with human practitioners. In February 2025, results of the first in-depth GenAI benchmarking study for legal LLM tools became available, courtesy of Vals AI,3 an independent evaluator of LLMs. Their study benchmarked tools from four vendors against the performance of lawyers in handling seven tasks, one of which was data extraction. Scores included a ‘plus/minus’ number reflecting the margin of error.
Two tools scored higher on data extraction than humans. However, it is worth noting that, in both cases, the tool’s score did not exceed the margin of error of the lawyers’ score. This suggests that the difference in scores may not be statistically significant. Moreover, two tools scored lower than humans, and both had scores exceeding the margin of error. The bottom line is that LLMs for legal are approaching the point where they consistently match or even exceed human performance – but they aren’t there yet.
LLMs for CLM – what role does fixed metadata play?
With the arrival of LLMs capable of dynamically analyzing and extracting data in real time, the role of fixed metadata is now ripe for scrutiny. LLMs offer unparalleled flexibility, adapting to queries on the fly, identifying patterns and providing deeper insights. But can they fully replace the reliability and foundational consistency of structured metadata?
Not entirely—at least not yet. Fixed metadata, while rigid and limited in scope, provides consistency and reliability that are crucial for compliance, integrations, and mission-critical processes. LLMs, on the other hand, can enhance the functionality of CLM systems by offering dynamic capabilities, such as identifying risks, generating insights or filling gaps in metadata. But LLMs are computationally intensive and might miss nuances in complex legal language.
Are we there yet with a hybrid approach?
Returning to the conundrum above. It stats that CLM systems’ use of fixed metadata may be nearing the end of its lifetime and asks what this means for the future of CLM systems and for those looking to acquire, deploy, or upgrade a CLM.
The answer leans into pushing the pause button for several reasons.
- The future of CLM isn’t about choosing between metadata and AI but about synthesizing them to build smarter, more responsive systems.
- The advent of LLMs is not an endpoint for the use of fixed metadata in CLMs.
- Rather, a hybrid approach will take hold, one that combines the best of both worlds: the accuracy and consistency of structured data with the flexibility and adaptability of dynamic analysis.
Therefore, for CLM users, we’ve no need to panic; the results of the Vals AI study indicate that -- while attention to CLM LLMs is warranted -- a wait-and-see stance is prudent, at least for now. We don’t want to oversimplify the overall challenge and confuse things.
END NOTES
- Fixed metadata refers to metadata values that are set and cannot be changed after initialization. These values are often used to represent a predefined or static characteristic of an object or data element. Examples include drop-down lists, checkboxes, or radio buttons where users select from a limited set of options. ) AI Overview online.
- Elevate article titled Contracts
- GenAI benchmarking study Vals Publishes Results of First Legal AI Benchmark Study VA vals.ai
About the Author
Neetika is Managing Director and India Geo Head at Elevate. She leads Elevate’s Contracts Insights business and oversees all aspects of Contract Insights from day-to-day operations and sales support to strategy development. Neetika is also responsible for driving growth and efficiency through initiatives like AI automation, go-to-market strategies, and organic growth plans.
Neetika has over two decades of experience in legal services. Prior to Elevate, she co-founded Sumati, a leading provider of contract lifecycle management (CLM) managed services, acquired by Elevate in December 2018. At Sumati, Neetika established the processes and framework for delivering a comprehensive, India-based contracts services solution. In addition, she supported the COO as the manager of the company’s India facilities and operations. Neetika holds a Master of Law degree from Kurukshetra University.
About Elevate
Elevate is an expert-led, software-powered law company. We provide software and services for the intersection of business and law. Our legal, business, and technology professionals offer practical ways for global law departments and law firms to improve efficiency, quality, and business outcomes. More information at Elevate.