
If
you
listened
to
deal
teams
in
2025,
you’d
hear
a
familiar
refrain:
contracts
are
slowing
everything
down.
Too
much
governance.
Too
many
controls.
Too
much
legal
caution
layered
onto
deals
that
just
need
to
close.
That
story
feels
right.
It’s
also
wrong.
What
actually
slowed
deals
in
2025
wasn’t
legal
rigor.
It
was
uncertainty.
And
the
deals
that
closed
fastest
weren’t
the
simplest
contracts.
They
were
the
ones
that
made
trust
visible
early.
What
Really
Caused
Deal
Friction
In
2025
AI,
data
use,
and
regulatory
ambiguity
changed
the
baseline
assumptions
of
commercial
contracting.
Risk
felt
harder
to
evaluate,
harder
to
price,
and
harder
to
explain
to
business
stakeholders.
When
parties
couldn’t
tell
what
the
other
side
was
actually
doing
with
data,
models,
or
automated
decision-making,
negotiations
dragged.
Questions
multiplied.
Escalations
became
inevitable.
Everyone
defaulted
to
delay,
not
because
the
contract
was
long,
but
because
the
risk
signals
arrived
too
late.
In
other
words,
deals
didn’t
slow
because
contracts
asked
for
too
much.
They
slowed
because
no
one
knew
who
to
trust
until
the
eleventh
hour.
The
Counterintuitive
Pattern
Lawyers
Started
Noticing
Across
many
2025
negotiations,
a
clear
pattern
emerged:
contracts
with
clearer
governance
language
tended
to
close
faster
and
escalate
less,
even
when
they
were
longer
or
more
detailed.
That
sounds
backwards
if
you
equate
speed
with
simplicity.
But
speed
isn’t
about
page
count.
It’s
about
legibility.
When
contracts
clearly
spelled
out
how
AI
systems
could
be
used,
what
guardrails
applied,
when
reviews
were
triggered,
and
how
issues
would
be
handled,
parties
stopped
arguing
in
the
abstract.
They
could
see
the
shape
of
the
risk.
Clarity
reduced
imagination-driven
fear.
And
fear
is
what
slows
deals.
Why
Blanket
Prohibitions
Backfired
One
instinct
that
showed
up
early
in
2025
was
the
use
of
blanket
prohibitions.
No
AI
use.
No
automated
decision-making.
No
training
on
customer
data.
No
exceptions.
Those
clauses
felt
safe
at
first.
They
were
easy
to
draft
and
easy
to
explain.
They
also
tended
to
unravel
under
scrutiny.
Blanket
prohibitions
invite
edge
cases.
They
raise
questions
they
don’t
answer.
And
once
business
teams
realize
the
prohibition
conflicts
with
how
the
product
actually
works,
renegotiation
becomes
unavoidable.
The
result
isn’t
speed.
It’s
churn.
Broad
bans
delayed
deals
not
because
they
were
strict,
but
because
they
were
brittle.
They
couldn’t
accommodate
reality
without
reopening
the
entire
conversation.
Conditional
Obligations
Quietly
Accelerated
Deals
What
worked
better
in
2025
wasn’t
less
governance.
It
was
more
conditional
governance.
Contracts
that
moved
quickly
tended
to
replace
blanket
restrictions
with
conditional
permissions.
Instead
of
saying
“never,”
they
said
“unless.”
Instead
of
prohibiting
entire
categories
of
behavior,
they
defined
thresholds,
triggers,
and
escalation
paths.
If
AI
was
used
in
certain
ways,
additional
obligations
applied.
If
models
changed
materially,
notice
was
required.
If
automated
decisions
crossed
defined
boundaries,
review
mechanisms
kicked
in.
These
provisions
weren’t
lighter.
They
were
more
precise.
And
precision
reduced
friction.
When
parties
understood
when
obligations
applied,
they
stopped
arguing
about
whether
they
should
exist
at
all.
Trust
Architecture
Beats
Trust
Theater
A
lot
of
contracts
still
rely
on
what
might
be
called
trust
theater:
broad
assurances,
aspirational
principles,
and
generalized
promises
of
responsibility.
Those
statements
don’t
build
trust.
They
postpone
it.
The
deals
that
closed
faster
in
2025
relied
on
trust
architecture
instead.
They
embedded
concrete
signals
into
the
contract:
governance
processes,
audit
hooks,
documentation
expectations,
and
clear
accountability
pathways.
Rather
than
asking
counterparties
to
believe,
these
contracts
showed
them
where
to
look.
That
difference
mattered.
When
trust
was
observable
early,
negotiations
focused
on
alignment
instead
of
suspicion.
What
This
Means
For
Lawyers
In
Practice
The
lesson
from
2025
isn’t
that
contracts
should
be
simpler.
It’s
that
they
should
be
clearer
sooner.
Governance
language
placed
at
the
end
of
an
agreement
tends
to
arrive
too
late
to
reduce
friction.
By
then,
risk
perceptions
are
already
set.
Putting
clarity
upfront
allows
business,
legal,
and
technical
teams
to
align
before
negotiations
calcify.
Lawyers
who
frame
governance
as
a
delay
mechanism
miss
its
real
function.
Done
well,
governance
is
a
deal
accelerator
because
it
collapses
uncertainty
early.
Patterns
like
these
appeared
consistently
across
commercial
agreements
negotiated
in
2025
and
are
explored
in
more
detail
in
a
recent
“Contract
Trust
Report”
examining
how
trust
signals
affect
deal
velocity.
The
Real
Takeaway
In
2025,
the
fastest
deals
weren’t
the
lightest
on
governance.
They
were
the
clearest
about
it.
Contracts
didn’t
slow
business
down.
Unclear
trust
signals
did.
Olga
V.
Mack
is
the
CEO
of
TermScout,
where
she
builds
legal
systems
that
make
contracts
faster
to
understand,
easier
to
operate,
and
more
trustworthy
in
real
business
conditions.
Her
work
focuses
on
how
legal
rules
allocate
power,
manage
risk,
and
shape
decisions
under
uncertainty.
A
serial
CEO
and
former
General
Counsel,
Olga
previously
led
a
legal
technology
company
through
acquisition
by
LexisNexis.
She
teaches
at
Berkeley
Law
and
is
a
Fellow
at
CodeX,
the
Stanford
Center
for
Legal
Informatics.
She
has
authored
several
books
on
legal
innovation
and
technology,
delivered
six
TEDx
talks,
and
her
insights
regularly
appear
in
Forbes,
Bloomberg
Law,
VentureBeat,
TechCrunch,
and
Above
the
Law.
Her
work
treats
law
as
essential
infrastructure,
designed
for
how
organizations
actually
operate.




Kathryn

