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Is Your CLM Software Ready for 2025's Regulatory Legal Changes?

Written by Mark Nastasi | 04/15/25

As 2025 continues to unfold, legal regulatory landscapes are shifting faster than ever. This year's shifts include the current administration's changes to evolving import tariffs, AI governance practices, ESG mandates, and the heightened need for legal operations modernization. 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.

Enter CobbleStone Contract Insight® contract lifecycle management (CLM) software—not 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 organizations manage contracts.

With the introduction of new import/export tariffs and the trade war, finding out who is 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.

With regard to data privacy laws, five more states (Florida, Pennsylvania, Illinois, Washington, and New Jersey) are now rolling out GDPR-inspired laws, requiring contracts with vendors and third parties to detail data handling, consent, and retention policies.

Regarding AI regulations - 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, we have ESG compliance. The SEC and EU Corporate Sustainability Reporting Directive (CSRD) are making ESG obligations 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 digitize their contract processes can pivot with agility, adapt quickly to new legal frameworks, and foster trust with stakeholders.

 

 

CobbleStone Software: Helping With 2025 Regulatory Changes

Traditional contract repositories and spreadsheets can’t keep up with the complexity of the 2025 regulatory landscape. CobbleStone Software's modern CLM platform offers:

  • Improved Legal Intake: VISDOM® AI-assisted legal reviews with support for 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 & 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.

In short, CLM is becoming a core system of record for compliance, not just contracts.

 

2025-2026 CLM Trends to Watch

2025 and 2026 host some CLM trends to watch out for, including:
  1. AI-Powered Compliance Intelligence: CLM platforms integrate generative AI to interpret regulations and recommend compliant clauses.

  2. Cross-Functional Adoption: CLM is moving beyond legal, empowering finance, HR, procurement, and sales to self-serve while staying compliant.

  3. Global Clause Governance: As multinational organizations face divergent local laws, CLM tools adapt to manage clause variations across jurisdictions.

 

 

Final Thoughts: CLM as a Strategic Imperative

In an era where regulatory pressure is rising in sync with digital complexity, organizations 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 CobbleStone® today!

*Legal Disclaimer: This article is not legal advice.  The content of this article is for general informational and educational purposes only.  The information on this website may not present the most up-to-date legal information. Readers should contact their attorneys for legal advice regarding any particular legal matter.