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Harnessing generative AI: a new era in contract lifecycle management

Photographic potrait of Chet A. Trivedi
Chetan (Chet) Trivedi

EY Americas Supply Chain and Global Business Services Leader

2 minute read 17 Jul 2025
Related topics
AI
Emerging technology

Generative AI is transforming procurement and contract management by delivering actionable insights for improved efficiency.

Three questions to ask

  1. How can organizations ensure the successful integration of GenAI into their existing contract management systems?
  2. What measures should be taken to address security and compliance challenges associated with using GenAI in contract management?
  3. How can organizations leverage the insights generated by GenAI to drive better decision-making in their procurement processes?

The world of contract lifecycle management (CLM) is on the cusp of a significant transformation, driven by the innovative capabilities of generative AI (GenAI). Traditionally, contracting processes in procurement have been a complex and time-consuming process, often leading to inefficiencies and missed opportunities. However, organizations are now realizing the potential of GenAI to streamline these processes, enabling them to interact with vast amounts of contract data and extract actionable insights tailored for procurement, finance, legal and business units.

Download the whitepaper: GenAI in contract management

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The integration of GenAI into CLM is not merely about enhancing efficiency; it represents a fundamental shift in how contracts are developed and managed. This technology can help mitigate value leakage, drive innovation and improve supplier performance.1 Recent conversations with chief procurement officers (CPOs) indicate a growing optimism regarding GenAI implementation, with 70% of CPOs prioritizing digital transformation in their strategic plans. A study by World Commerce & Contracting (WCC) reveals that 31% of organizations are early adopters of artificial intelligence in their contracting processes, while a significant 61% remain untapped potential adopters.

GenAI in procurement offers clarity on essential contract elements, allowing stakeholders to understand the implications of terms without requiring extensive legal expertise. By suggesting contractual language that aligns with an organization’s preferred terms based on historical negotiation data, GenAI accelerates the contracting process and ensures consistency. Furthermore, it can distill lengthy contracts into easily digestible insights, fostering collaboration among cross-functional teams and ensuring a shared understanding of contractual implications.

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The technology also enhances contract analytics by swiftly scanning contracts, identifying key clauses and summarizing content. By analyzing past contract performance, GenAI can forecast potential scenarios for new agreements, empowering stakeholders to make informed decisions that align with their business objectives.

 

As procurement leaders continue to explore the diverse applications of GenAI in contract management, they recognize its potential to provide a competitive edge beyond mere efficiency. By integrating a CLM infrastructure with GenAI components, impactful use cases are emerging that promise to transform the contracting process, paving the way for a more streamlined and effective approach to contract management. Interested readers are invited to explore these insights and strategies by accessing the complete whitepaper.


Summary

Generative AI (GenAI) is poised to revolutionize contract lifecycle management (CLM) in procurement by enhancing efficiency, clarity and collaboration. As organizations increasingly adopt this technology, they can expect significant improvements in how contracts are developed and managed, ultimately leading to better business outcomes. The future of CLM is bright, and GenAI is at the forefront of this exciting evolution.

About this article

Photographic potrait of Chet A. Trivedi
Chetan (Chet) Trivedi
EY Americas Supply Chain and Global Business Services Leader
Global operations leader with a passion for people development. Husband and father of two. Passionate about family and community. Loves soccer, basketball, skiing, golf and family trips to the beach.
Related topics
AI
Emerging technology

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