What is Microsoft Copilot, and How is it Used for Contracts?
Microsoft Copilot is an AI assistant integrated into Microsoft 365 applications such as Word, Excel, Teams, and Outlook. It uses generative AI to perform contextual tasks, including drafting documents, generating summaries, analysing data, and producing insights based on content stored in a user’s Microsoft environment.
For contract work, Copilot helps speed up routine tasks. Within Word, users can ask it to draft clauses, compare contract versions, or summarise key terms. In Teams, it can recap meeting discussions or generate follow-up notes. For Outlook, it can compose responses or set up contract review meetings automatically.
These features make Copilot valuable for lawyers and business users seeking to save time on manual work. However, it functions only within individual Microsoft applications. Each task remains tied to the specific document being edited, with no central repository or structured process for managing contracts throughout the entire contracting cycle.
Copilot can be extended through SharePoint or Power Automate, but these require complex setup and technical support. In practice, Copilot enhances productivity but lacks the structured workflows, compliance oversight, and automation of a true CLM platform.
Why is a General AI like Copilot Not Enough for Contract Management?
Microsoft Copilot is designed to enhance productivity within the Microsoft 365 suite; however, contract management requires more than just document editing or text generation. Managing contracts involves structured workflows, multi-level approvals, compliance oversight, and secure data storage, capabilities that Copilot was not designed to provide.
Not a Centralised System
Copilot works inside individual Microsoft 365 applications, which means contracts remain fragmented across Word, Outlook, Teams, and SharePoint. While SharePoint can serve as a basic repository, it lacks the sophistication of a true CLM system. There is no single source of truth or unified dashboard to track versions, renewals, or obligations. As a result, legal and business teams often lose visibility into the full contract lifecycle.
Integration and Data Silos
Because Copilot is confined to the Microsoft ecosystem, it cannot easily connect with external platforms or local storage. This limitation creates data silos, especially for organisations that rely on tools beyond Microsoft 365. Integrating Copilot with systems such as CRMs, ERPs, or procurement platforms requires custom development and ongoing IT support, adding complexity and cost to what should be a straightforward process.
Lack of Persistent Memory
Each Copilot session is temporary. Once closed, it forgets previous context and cannot recall details from earlier conversations or documents. For contract management, where continuity and audit trails are essential, this creates inefficiency. Users must manually reintroduce context or search for prior notes, slowing down reviews and approvals.
Generalist vs. Specialist AI
Copilot’s AI is designed for general productivity tasks. It can draft, summarise, or compare text, but it is not trained to interpret legal nuances or perform compliance checks against internal playbooks. Dedicated CLM platforms like Lexagle offer legally trained AI capable of identifying risk, spotting deviations from approved templates, and supporting contract compliance within a company’s regulatory framework.
Security and Data Privacy Concerns
Although Microsoft maintains a secure cloud environment, Copilot does not provide the contract-specific controls required for sensitive legal work. Data hosting is primarily based in the US or EU, which may not meet regional data residency requirements in Asia or other jurisdictions. For companies operating under strict data sovereignty laws, this presents compliance risks. A dedicated CLM platform such as Lexagle offers regionally hosted, fully compliant environments designed for legal-grade data protection.
What Makes Lexagle a Leading AI-First Contract Management Platform?
Lexagle stands out as an all-in-one contract lifecycle management platform founded by legal and technology experts to automate every stage of the contracting process. Designed to remove complexity, it transforms manual, fragmented workflows into a single, intelligent system that drives efficiency, visibility, and collaboration across teams.
Unlike general-purpose AI tools, Lexagle’s features are purpose-built for contracting. It handles everything from drafting and negotiation to approval, signing, and post-execution monitoring, all within one secure environment. The platform aims to make contracting a smoother and more positive experience for both legal teams and business users.
Today, Lexagle powers contract operations for enterprises across more than 15 countries, helping users manage over USD 15 billion in contract value. Its next-generation approach combines legal expertise, advanced AI, and user-centred design, enabling organisations to achieve faster cycle times, stronger compliance, and complete control over their contracting process.
How Does Lexagle's Purpose-Built AI Compare to Copilot's General Capabilities?
While Microsoft Copilot provides helpful assistance for drafting and summarising text, its AI remains a generalist tool designed for a wide range of office tasks. Lexagle, by contrast, was built from the ground up for legal and commercial contracting. Its proprietary AI is legally trained to understand contractual language, assess risks, and verify compliance against company playbooks, all within a structured, end-to-end contract management platform.
While Copilot assists with individual tasks, it cannot maintain the context and continuity required for managing an entire contract lifecycle. Lexagle’s AI works within a unified ecosystem that connects drafting, negotiation, approval, signing, and obligation tracking, ensuring that every contract stays compliant and auditable from start to finish.
CategoryLexagleMicrosoft CopilotCore FunctionEnd-to-end platform for the entire contract lifecycle: drafting, negotiation, approvals, signing, storage, and obligation trackingAI assistant for isolated tasks within Microsoft apps, such as drafting or summarising, without managing the full processAI CapabilitiesFeatures Lexagle AI, a legal-trained AI for context-aware contract review, risk detection, compliance checks, and metadata extractionPerforms general summarisation and drafting tasks but lacks legal intelligence, risk analysis, and playbook-based compliance validationWorkflow and ApprovalsIncludes a Workflow Designer that automates multi-level approvals, with built-in audit trails and legal oversightNo native workflow automation. Users rely on Power Automate or manual routing, which requires custom setup and lacks governance controlsCollaboration and NegotiationEnables secure in-platform negotiation via encrypted chat and comment threads, with integrated e-signatures at no additional costRelies on Teams or Outlook for discussions, which may be fragmented and less secure. Does not include digital signing capabilitiesData Management and SecurityUses the Lexagle Vault, a centralised, encrypted repository with granular RBAC/ABAC controls and regional hosting (e.g., Singapore) to meet PDPA and other APAC data lawsData stored within Microsoft 365 environment but without CLM-specific organisation. Hosting primarily in US/EU, which may not meet regional data residency requirements
Beyond these features, Lexagle’s AI-driven design transforms contracting processes into a structured and intelligent process rather than a collection of disconnected tasks. It gives legal and business teams the confidence that every agreement is accurate, compliant, and securely managed, something that a general-purpose AI like Copilot cannot match.
Can Copilot Automate Approval Workflows Like a Dedicated CLM?
Microsoft Copilot cannot independently manage or enforce approval workflows. It can assist with drafting an approval request email or summarising comments, but it does not track, route, or control the approval process itself. Any attempt to automate workflows within the Microsoft ecosystem requires Power Automate, which demands custom programming, technical setup, and ongoing maintenance, making it impractical for legal and business teams that need a structured, compliant process.
In contrast, Lexagle simplifies workflow automation with its built-in no-code Workflow Designer. Teams can create and modify approval chains with just a few clicks, assigning specific reviewers, departments, or approval levels based on contract type, value, or risk. Each stage is fully traceable, with automatic logging and audit trails to support compliance and accountability.
With Lexagle, organisations gain complete visibility into every approval step while reducing bottlenecks and human error. Instead of relying on fragmented tools or manual follow-ups, users work within a single intelligent system where every action, comment, and decision is captured in real time.
Does Lexagle Offer Better Security and Regional Compliance?
Lexagle provides enterprise-grade security tailored for legal and regulated organisations. The platform holds ISO/IEC 27001:2022 and SOC 2 Type I and II certifications, demonstrating adherence to international standards for information security and operational integrity. Every system layer, from authentication to encryption, is designed to protect sensitive contract data while maintaining transparency and control for clients.
A key advantage of Lexagle is its regional data hosting. Production servers are located in Singapore, with a disaster recovery site in Tokyo, and deployment options are available across Asia, Europe, and the United States. This setup allows customers to meet local data residency and privacy requirements, including Singapore’s PDPA, Malaysia’s PDPA, and the EU GDPR.
By comparison, Microsoft Copilot relies primarily on US- and EU-based infrastructure. For enterprises in Asia and other regions with strict data sovereignty regulations, this can pose compliance challenges. Lexagle’s regional architecture ensures all contract data remains securely within the chosen jurisdiction, providing a level of legal and regulatory assurance that general-purpose AI tools cannot match.
How Do Lexagle's Collaboration Tools Outperform Standard Microsoft 365 Features?
Lexagle centralises every stage of contract collaboration within a single, secure workspace. The platform includes unlimited built-in e-signatures, enabling users to execute agreements directly within the system without relying on external tools or additional licences. Every signature is fully compliant with ESIGN, eIDAS, and APAC e-signature laws, giving businesses full flexibility across jurisdictions.
Beyond signing, Lexagle offers encrypted in-platform chat rooms where legal, sales, and procurement teams can negotiate, comment, and resolve issues directly on the contract. All discussions, document versions, and approvals are automatically captured within an auditable communication trail, eliminating the need to track updates through scattered emails or Teams messages.
This integrated approach makes collaboration faster, more transparent, and far more secure than the fragmented workflows typical of Microsoft 365. Users can manage the entire process, from drafting to negotiation to signing, inside a single, compliant platform built specifically for contracts.
What Do Lexagle's Customers Say About Switching to a Specialised CLM?
Enterprises that adopt Lexagle report measurable gains in efficiency, visibility, and collaboration. Organisations across industries have achieved up to 63% time savings in contract administration and a 70% reduction in time-to-close, thanks to automation and structured workflows. These improvements speed up deal cycles, increase accountability, and reduce administrative burdens for legal teams.
Customer feedback highlights Lexagle’s usability and flexibility. With 98% user satisfaction, business units such as sales, procurement, and HR can self-serve their contracting needs, while legal maintains full oversight through approval routing and audit trails. Teams can move faster without compromising compliance.
A leading government-linked financial institution chose Lexagle to modernise its contract processes. The decision was driven by the platform’s strong security standards, intuitive interface, and customisable workflows that aligned with internal governance requirements. Within months, the institution reported shorter approval cycles and a more transparent contracting process across departments.
As one customer noted, “Lexagle made contract management less of a legal bottleneck and more of a business enabler. Our teams now collaborate in real time, and we always know where a contract stands.”
Frequently Asked Questions about Copilot for Contract Management
Is Microsoft Copilot a Contract Lifecycle Management (CLM) platform?
No. Copilot is an AI assistant inside Microsoft 365 apps like Word, Excel, and Teams. It can draft, summarise, and analyse text, but does not manage contracts across all contracting stages, including approvals, signing, or post-execution tracking.
What are Copilot’s main limitations for contract management?
It lacks a centralised contract repository and operates only within Microsoft apps. Data cannot easily flow across systems, creating silos. Its AI is general-purpose and cannot handle legal-specific tasks such as risk detection, compliance checks, or clause benchmarking.
Can Copilot be integrated into a contract workflow?
Partially. Tools like SharePoint or Power Automate can create workflows, but they require technical setup and ongoing maintenance. Copilot cannot enforce approvals, compliance steps, or provide auditable trails on its own.
Is Copilot secure for handling sensitive legal data?
Copilot uses Microsoft 365’s security framework, which is strong for general business use. However, it lacks specialised CLM controls, granular permissions, and regional hosting options, which are important for compliance with PDPA, GDPR, or similar laws.
Why Lexagle is the Smart Choice for Your AI Contract Management Strategy
Microsoft Copilot is a capable productivity assistant, but it was never designed to handle the full complexity of contracting. It can help with tasks like drafting or summarising, yet it lacks the structure, security, and visibility needed for end-to-end contract management.
Lexagle fills that gap. Built by legal and technology experts, it is a specialised AI-first CLM platform. Lexagle automates every stage of the contract process. Teams can handle drafting, negotiation, approvals, signing, and post-execution tracking all within a single, unified system. Its purpose-built legal AI provides context-aware risk analysis and compliance checks that general tools cannot match.
Beyond intelligence, Lexagle delivers enterprise-grade security, including ISO 27001 and SOC 2 certifications. Regional data hosting in Singapore and other jurisdictions ensures compliance with local privacy laws. Every feature, from unlimited e-signatures to encrypted collaboration rooms, is designed to create a secure, auditable, and user-friendly contracting environment.
True contract excellence requires more than a productivity assistant. You need a specialised, integrated platform designed for the complexities of legal and business workflows. Take control of your contracts with Lexagle; secure, efficient, and fully auditable. Book a demo today.
