The most seductive promise in Legal Tech is "Self-Service." The idea is simple: empower business users to generate standard contracts (NDAs, MSAs, SOWs) from approved templates, freeing up legal counsel for high-value work.
In theory, it's a win-win. In practice, it often becomes a governance nightmare.
The Hidden Cost of Template Maintenance
"Self-service" is not a set-it-and-forget-it feature. It requires a rigorous, ongoing commitment to template hygiene. Every time a regulation changes (e.g., GDPR, CCPA) or company policy shifts (e.g., payment terms), someone must update the underlying logic.
If you have 50 self-service templates, and a new data privacy law passes, you don't just update one document. You update 50 logic trees. If you miss one, you are now automating non-compliance at scale.
The "Rogue Drafter" Problem
When business users are given the power to generate contracts, they often assume they also have the power to modify them. Unless your CLM has strict permission controls (locking down specific clauses), you will find sales reps "fixing" liability caps to close deals faster.
We call this "Shadow Redlining." It happens outside the view of Legal, often in the downloaded Word document, before it's re-uploaded for signature.
The Complexity Trap
As automation depth increases, the maintenance burden grows exponentially, not linearly.
When Self-Service Actually Works
Self-service is not bad; it is just misused. It works brilliantly for:
- High Volume, Low Risk: Standard NDAs, simple Order Forms.
- Binary Variables: Inputs that are strictly "Yes/No" or dropdown selections.
- No Negotiation Expected: Documents that are presented as "take it or leave it."
It fails when applied to:
- Master Services Agreements (MSAs): Too many negotiated variables.
- Complex IP Licensing: Requires legal judgment, not just logic.
The Consultant's Takeaway: Don't try to automate everything. Start with the simplest 20% of your contracts that consume 80% of your administrative time. Leave the complex 80% to the humans.