What’s Happening in AI in 2025: Trends Shaping Legal and Contract Technology

Artificial Intelligence (AI) has moved from experimental projects into everyday business infrastructure. In 2025, AI is not only changing how we work but also raising critical questions about governance, compliance, and trust. For legal teams and organisations managing contracts, understanding these trends is key.

Here’s a look at what is happening in the world

of AI right now, and what it means for legal and contract management.

AI Adoption Is Accelerating

AI is being embedded across industries, from finance to government. In Australia, adoption is climbing quickly, small and medium enterprises are now investing in AI tools, while major corporates are building AI into their core systems.

Telstra, for example, recently confirmed it expects to shrink its workforce as it leans “hard” on AI, including in customer service. Meanwhile, Amazon has committed $13 billion USD to expand data centre infrastructure in Australia over the next five years, largely to support growing AI demand.

For contract management, this reflects a broader shift: organisations are ready to trust AI for critical, document-heavy workflows, like contract review, due diligence, and compliance reporting.

Open Source and Regulatory Scrutiny

Global players are pushing AI forward at speed. Meta’s Llama model was recently approved for use by US government agencies, highlighting how open-source AI is entering mainstream adoption. This is significant because it suggests lower costs and greater flexibility for businesses who want to fine-tune models for specialised tasks, such as reviewing contracts under Australian law.

At the same time, governments and regulators are raising concerns. In Queensland, AI-powered traffic cameras are under fire for privacy failures. Similar scrutiny is playing out worldwide, with regulators focused on ensuring that AI tools are transparent, explainable, and used responsibly.

For legal teams, this underscores the importance of choosing AI platforms that have strong privacy, governance, and audit features built in.

Investment and Consolidation in AI

Investment in AI continues at record levels. Riverwood Capital recently announced a $180 million investment into AppZen, an AI-powered finance technology firm.. The message is clear: investors see AI as a permanent fixture, not a passing trend.

This influx of capital will accelerate development and make AI tools more accessible to a broader range of industries. For legal teams, it means better tools, faster improvements, and more options, but also a greater need to assess which providers have long-term stability and robust compliance frameworks.

What This Means for Contract Cloud Users

For organisations using Contract Cloud, these trends have practical implications:

• Confidence in AI: Businesses are becoming more comfortable using AI for complex, high-value tasks. This validates tools like Contract Cloud that streamline contract reviews, policy drafting, and due diligence.

• Regulatory Expectations: As AI oversight increases, clients will expect providers to demonstrate strong privacy, security, and governance measures, something Contract Cloud already builds into its platform.

• Scalability: With new infrastructure and investment, AI will become faster, more powerful, and more cost-effective. This will only enhance features like Contract Cloud’s bulk review tool and AI-powered drafting.

Looking Ahead

AI is no longer a “nice to have.” It is shaping the way businesses operate, govern, and manage risk. For legal teams, the question is not whether to adopt AI, but how to do so responsibly and strategically.

At Contract Cloud, we believe AI should empower lawyers and businesses, not replace them. By combining human judgement with AI-powered efficiency, Contract Cloud ensures your contracts, policies, and governance documents are reviewed faster, with greater accuracy, and in line with your organisation’s risk appetite.