AI: a strategic revolution in contracting
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In brief
Unlocking strategic value through contracts: Organizations lose an average 8.6% of their contract value through inefficiencies, disagreements, and risks that are poorly defined and managed. This startling statistic underscores the opportunity which comes from a transformation of contract management – a shift from transactional oversight into a strategic discipline that aligns directly with commercial goals.
Until today, that shift has proved elusive. Now, by embracing AI-enabled approaches, particularly the innovative Agentic Architecture framework, businesses can mitigate value erosion, proactively identify risks and opportunities, and unlock new revenue streams.
Two related reports about AI. This AI: a strategic revolution in contracting report explores how Agentic AI is transforming contract management's execution and perception. Our other report in the series, AI and the CML, outlines a compelling vision for the future and AI's impact on contract management's role and value.
AI a strategic revolution in contracting
Agentic Architecture
From Compliance to strategy: the role of Agentic AI
Traditionally, contract management has been viewed as a reactive, transactional activity. With Agentic AI, contract management becomes a critical source of business intelligence and is elevated to a strategic discipline that directly influences business outcomes. Three major factors enable this change:
1. Alignment with commercial goals
2. Portfolio-level analysis
3. Continuous value creation
Strategic value in action
Agentic AI takes us beyond the benefits of increased efficiency and greater levels of compliance. We can anticipate it creating new sources of value such as prompting opportunities for renegotiation, improved pricing models, and more consistent application of cost-saving innovations.
Access the report for details of the 10 Pitfalls’ impacts, their contributions to value erosion, and potential AI solutions.
Conclusion: the new era of contract management
Agentic AI transforms how contract management is performed and perceived, shifting it from an administrative overhead to a measurable added-value and strategic enablement source.
It similarly expands the purpose of contracts themselves, supporting a diverse set of stakeholder and user needs. By providing deeper insights, proactive risk mitigation, and
continuous improvement, organizations are empowered to drive performance through their contract portfolios. This evolution places contracts and contract managers at the heart of business strategy, becoming a source of innovation, resilience, and profitability.
Such a shift is long overdue, yet has until now has been frustrated by the ever-increasing complexity of contracts and the market environment. The importance of change was clearly revealed by the WorldCC study into the purpose of contracts,3 which revealed that only 39% of today’s contract managers believe that their contracts effectively support business outcomes and just 16% feel they are negotiating the right topics. These statistics are clear indicators of the potential value to be achieved.
Written by
Tim Cummins
Ned Coleman
Ned Coleman is the Executive Director of Contract Management, Accenture. In this role, Ned oversees the Contract Management function, a global team of 1,800 that leverages contract expertise, commercial acumen and client relationship skills to improve our clients’ experience of working with Accenture, support profitable growth and manage contract risk, and oversee the contract lifecycle. Ned sponsors the Global Legal Network, our legal shared services capability that spans 12 countries around the globe providing skills in legal and contract management and in key languages. He is a member of the Global Legal Executive Committee and Global Leadership Committee. Assuring that legal is an inclusive place for all, and where everyone can bring their whole selves to work, is hugely important to Ned. He sponsored Truly Human for Legal for many years, and currently sponsors New Joiner and Ally Engagement for Pride. Ned also leads Accenture Commercial Services (ACS), which is a collaboration of Accenture’s financial, commercial and contract-related functions offering key services that enable client teams to manage, sell and deliver. ACS provides global contracting capabilities through Accenture International Limited (AIL) to which Ned serves as the managing director and chairs its Board. From 2013 to 2017, Ned led Contract Management and Transaction Contracting in Asia Pacific and was based in Singapore. Starting in 2015, his role evolved to lead Contract Management in the Middle East, Africa, Russia and Turkey in addition to Asia Pacific. From 2010 to 2013, Ned was a Commercial Director supporting our work in Financial Services in the United Kingdom. Ned has a commercial management background and qualified as a Chartered Accountant with Arthur Andersen in Dublin. Ned joined Accenture in 2007 as part of Contract Management. He lives in Dublin, Ireland, with his wife Alison and three young boys. Outside of work, he enjoys road cycling and spending time with his family – often from the sidelines of a pitch.
Donna Young
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