AI and Procurement Contract Management

TheCodeWork team conducted a survey with 50 to 100 Chief Procurement Officers (CPOs) from EMEA and North America regarding Procurement Contract Management, to uncover their challenges and the innovative solutions being adopted.

The findings revealed a growing acceptance of automation and other technologies in the procurement process.

Key insights included:

• 65 percent of respondents already utilize automated contract management in their procurement processes. This trend highlights the importance of digital transformation, recognizing contracts as fundamental to commercial relationships.
  
• 32 percent of participants indicated that securing a budget for automated procurement processes is straightforward, and 42 percent stated it would be feasible if ROI is demonstrated. This reflects businesses’ strong interest in investing in automation to enhance procurement efficiency and consistency, with clear ROI benefits.
  
• 65 percent of surveyed CPOs anticipate that AI-assisted negotiation will become the most valuable procurement automation technology. As digitization evolves, contracts are transitioning from static documents to dynamic, strategic assets, with AI enabling interactive and intelligent contract management.
  
• 16 percent of participants are currently using AI in their procurement systems. There is significant potential for growth and innovation, indicating businesses’ awareness of AI’s impact on enhancing key processes.

Future Outlook

We foresee AI being integrated with blockchain networks to further enhance contract management value. TheCodeWork is exploring applications of this technology with select clients, utilizing smart contracts within consortium blockchains. These applications aim to ensure contract compliance, ethical and secure sourcing, and transparent, agile supply chains.

To learn more about enterprise contract management and its impact on sourcing and procurement, contact TheCodeWork today.