As 2025 continues to unfold, legal regulatory landscapes are shifting faster than ever. This year’s shifts include global changes to evolving import tariffs, AI governance practices and ESG mandates. For legal, procurement and compliance teams, staying ahead of these changes isn’t just about reading the latest policy brief – it’s about transforming how contracts are managed, tracked and enforced.
Today, Contract Insight® contract lifecycle management (CLM) software isn’t just a nice-to-have legal tech tool, but a strategic shield against non-compliance and operational bottlenecks.
The regulatory climate: what’s changing in 2025
Several significant changes are impacting how organisations manage contracts.
With the introduction of new import/export tariffs and the trade war, finding out who’s responsible for paying tariffs and taxes is a primary concern for corporate lawyers, legal teams, and risk managers. Tariff changes can be very costly and slow down imports.
Changing data privacy laws mean a change in legislation, now centred around GDPR, requiring contracts with vendors and third parties to detail data handling, consent and retention policies. With the EU AI Act taking effect in 2025 and other regions following suit, contracts involving AI systems must now include clear obligations on transparency, risk classification, and ethical usage.
Finally, ESG obligations are becoming central to contracts. Contracts now need to enforce supplier sustainability standards and track related KPIs. These aren’t minor add-ons – they demand an overhaul of contract structure, storage, and monitoring.
The high cost of lagging behind
Companies without modern CLM solutions face several risks. Non-compliance penalties for privacy and ESG failures can reach millions. Manual tracking leads to expired renewals, missed obligations, and revenue leakage. Public non-compliance – especially in ESG or AI ethics – can result in brand erosion and loss of investor confidence. By contrast, companies that proactively digitise their contract processes can pivot with agility, adapt quickly to new legal frameworks, and foster trust with stakeholders.
Contract Insight: helping with 2025 regulatory changes
Traditional contract repositories and spreadsheets can’t keep up with the complexity of the 2025 regulatory landscape. Contract Insight’s modern CLM platform offers:
- VISDOM® AI-assisted legal reviews: supports new regulation compliance via in-system chat and other leading tools
- Automated compliance workflows: quickly flag outdated clauses when laws change and rapidly update templates across departments
- Intelligent clause libraries: maintain pre-approved, regulation-compliant language tailored by geography or business unit
- Audit trails and reporting: Promote transparency and readiness for regulatory audits with time-stamped records and performance tracking
- Third-party risk management: Vet and monitor vendor obligations in real-time with integrations to procurement systems and external risk databases
Takeaway
In an era where regulatory pressure is rising in sync with digital complexity, organisations need more than reactive compliance – they need proactive contract intelligence.
CLM software is no longer just a legal operations upgrade; it’s a regulatory compliance essential. Companies that embed it deeply into their workflows will gain more than just efficiency – they’ll gain resilience.
Explore how modern CLM can transform compliance from a risk to a competitive advantage by booking a free demo of Contract Insight today.
Contact John O’Brien, CEO at Four Business Solutions – global business consultants and software integrators specialising in business process improvement.