In the modern corporate landscape, contracts are the backbone of business operations. Yet, many in-house legal teams still approach these documents with a traditional mindset, focusing primarily on risk management and administrative workflows. Legal tech leader Colin Levy believes it's time for a paradigm shift. During a recent episode of *Notes to My (Legal) Self*, Levy emphasized that contracts are not just legal bindings but are reservoirs of critical business data.

"Contracts really are how businesses run," Levy noted. "They’re the lifeblood of a business — and they contain a lot of valuable data that often goes unnoticed or not tracked or not acted upon." This perspective highlights a significant oversight in how legal departments treat contracts: as static documents rather than dynamic sources of valuable insights.

Contrary to the common practice of negotiating, signing, and filing away contracts, Levy argues that these documents should be mined for the wealth of data they hold. From risk positions and clause trends to cycle times and fallback usage, contracts encapsulate business-critical information that could guide strategic decisions and operational improvements.

However, this data often remains underutilized, leading to inefficiencies across various departments. Sales teams may wonder about delays in contract approvals, finance departments might struggle with reconciling revenue forecasts, and procurement could miss costly auto-renewals. Without structured data, legal departments risk becoming seen as mere administrative bodies rather than strategic partners.

Levy suggests that the adoption of legal technology offers a solution by enhancing visibility. "To be a valued member of the team, you have to understand how the business operates," he explained. "Legal tech helps you become more data-driven and visible." This increased visibility can transform the legal department from being perceived as a blocker to being recognized as a critical asset.

The key to leveraging this potential is not immediately jumping to advanced tools like generative AI, but first understanding the wealth of information already present within contracts. Levy recommends starting with basic data points like renewal dates, payment schedules, and performance obligations. By tracking these elements, legal teams can provide quantifiable impacts, align strategies with business objectives, and earn the trust of other departments.

In conclusion, Colin Levy's insights serve as a call to action for legal teams to rethink their approach to contract management. By viewing contracts as sources of strategic data rather than mere legal formalities, legal departments can play a pivotal role in guiding business strategies and enhancing overall corporate performance. As Levy puts it, the first step towards transformation is not a leap into new technologies but a shift in attention to the valuable data that contracts inherently offer.