Supply Chain Digital Magazine September 2024 | Page 95

By 2027 , 50 % of organisations will support supplier contract negotiations through the use of Artificial Intelligence ( AI ) -enabled contract risk analysis and editing tools according to leading research and advisory company Gartner . Both Shannon and Santosh think that AI and automation are critical components in enhancing the functionality of CMS . The programme enables tasks such as contract analysis , negotiation and compliance monitoring to be automated , leading to increased efficiency and effectiveness in procurement operations .
Santosh is already seeing clients using AI to their advantage : “ We work with a leading European-based pharmaceutical company that uses our AI-driven CMS to scan all its contracts after any regulatory change – especially around GDPR , ESG and even on AI – to identify affected contracts and quickly initiate changes in a few minutes and hours . This is a task that would have taken weeks a year ago . This trend will continue and I fully expect that 80 % to 90 % of routine contract administration tasks will be fully automated in the next year or so .”
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