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How AI is Changing Contract Life-Cycle Management: Insights from the Hackett Group

How AI is Changing Contract Life-Cycle Management: Insights from the Hackett Group

Legal Team

The Hackett Group reveals that AI-enabled Contract Life-Cycle Management (CLM) software offers a game-changing boost in procurement efficiency, with up to 63% operational improvement. This technology is transforming how organisations handle contracts—from initiation to renewal—making the process faster, more efficient, and significantly reducing non-compliance risks.

Source: Business Wire

According to Hackett Group’s latest Digital World Class Matrix™ report, businesses integrating AI-powered CLM software have seen up to a 45% efficiency gain in contract creation and negotiation, alongside a reduction in contract cycle times by 35%. These numbers prove that optimising the contract process with AI is not just a trend—it’s a necessity for large enterprises.

With the growing need for smarter and faster contract management, companies are increasingly turning to AI for assistance. The report highlights that organisations implementing CLM technology have also seen a fivefold reduction in noncompliance-related losses. This is particularly critical for businesses in highly regulated industries that rely on precision, compliance, and risk management in their contractual processes.

Adopting AI-driven CLM solutions allows procurement and legal teams to work smarter, not harder. As contracts become more complex, the use of AI for automated reviews, risk analysis, and predictive analytics helps enterprises stay agile and compliant, while also significantly improving their bottom line.

Read More: Business Wire

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