How AI is Transforming Compliance Management

The traditional approach to supplier management – characterised by siloed systems and manual processes – is giving way to a more integrated model where AI and data analytics drive collaboration and inventory optimisation.

As global supply chains face increasing regulatory complexity and operational demands, procurement teams are turning to digital solutions that promise to transform how they manage supplier relationships and inventory levels.

Digital transformation of supplier relations

The shift towards digital supplier management is being driven by necessity as much as opportunity. As procurement evolves, the integration of AI and data analytics is not just beneficial but essential in enhancing productivity and ensuring robust contract governance.

This transformation is particularly evident in how organisations handle contract management and compliance. Traditional manual processes that once took procurement teams months to complete are now being compressed into weeks through the use of AI.

Patrick Marter, Supply Chain and Procurement Practice Leader at PwC, explains the current landscape: "Technologies like Large Language Models (LLMs) are reducing the typical implementation period from over a year to just a few months.

"When combined with advancement with agentic AI solutions, teams are now able to manage contract leakage more effectively, ensure contractual compliance and anticipate regulatory changes."

The foundation of effective supplier collaboration lies in creating integrated digital platforms that can process and analyse data from multiple sources simultaneously. With this, procurement teams can obtain the requirement for successful procurement operations – real-time visibility.

Patrick emphasises the importance of comprehensive data integration: "In an era of technology ecosystems it is essential to be able to combine data from across a multitude of systems and enrich it from various external sources such as supplier information, legal frameworks and geopolitical data."

This holistic approach to data management enables procurement teams to maintain visibility across their entire supply chain ecosystem. By treating contract analytics tools as enterprise-wide applications, organisations can support strategic decision-making across multiple business functions, including sales, procurement, finance, risk and legal.

Contract leakage and compliance challenges

One of the most significant benefits of closer supplier collaboration through digital tools is the reduction of contract leakage – a persistent problem that can cost organisations substantial amounts.

The integration of AI-enabled systems allows procurement teams to manage transactions and contracts more cohesively, reducing opportunities for value erosion.

"AI also enables procurement to manage transactions and contracts cohesively reducing the opportunity for leakage; which can average 3-4% of total contract value," adds Patrick.

From a technology perspective, Gaurav Oberoi, VP of Product at DocuSign, highlights how AI is transforming the day-to-day reality for procurement professionals: "Procurement teams are often buried in contracts and spreadsheets, trying to stay ahead of compliance risks – and that manual work can be slow, frustrating and easy to get wrong."

DocuSign's Intelligent Agreement Management platform offers one programme which is helping procurement approach contract management differently than before.

Solutions now help to surface critical information such as upcoming renewals or out-of-policy payment terms. "It's about giving procurement the visibility and confidence to act faster and govern smarter," says Gaurav.

Regulatory compliance in a dynamic environment

The regulatory landscape facing procurement teams continues to evolve rapidly, with requirements varying significantly across sectors and geographies. This complexity demands sophisticated tools that can adapt quickly to changing requirements whilst maintaining operational efficiency.

"Regulations are always changing – especially when your suppliers span the globe," observes Gaurav. DocuSign's approach includes tools like Navigator, a smart repository that provides procurement teams with comprehensive compliance visibility across their contract portfolios.

AI capabilities can now help give teams the ability to instantly scan thousands of agreements and quickly identify and report on clauses tied to GDPR, CCPA, DORA and more, meaning there is no need to dig through thousands of documents.

This technological capability addresses a fundamental challenge identified by Patrick regarding regulatory adaptation: "Many organisations initially respond by introducing new processes or tools for each new requirement, leading to a fragmented ecosystem of overlapping systems and complex workflows."

Streamlining vendor management processes

These challenges pave the way for enhanced supplier collaboration through the automation of risk assessment and vendor management processes.

By reducing manual bottlenecks and creating more streamlined workflows, organisations can focus on building stronger strategic relationships with their suppliers.

"Procurement leaders tell us time and again – the biggest bottlenecks are fragmented systems and manual processes," explains Gaurav.

Walmart and compliance

Walmart's approach to compliance management is anchored in its comprehensive Code of Conduct, which serves as both an internal policy framework and a public commitment to its core values and ethical principles.

This code applies universally across Walmart's global operations – including all associates, subsidiaries and Board members acting in their official capacities – ensuring a consistent standard of behaviour and legal compliance throughout the organisation.

Regular reviews and updates, with the most recent revision in 2023, keep the code relevant to evolving regulatory and industry expectations.

This compliance expectation extends beyond internal operations, demanding integrity from suppliers, vendors and business partners through its Standards for Suppliers.

This supplier code promotes responsible practices along the entire supply chain – including raw material providers and subcontractors – requiring these parties to cascade compliance requirements further downstream.

This comprehensive supply chain oversight underscores Walmart's commitment to holistic compliance management, mitigating risks whilst strengthening trust with customers, investors and stakeholders.

In 2025, Walmart announced it was using AI in a crackdown against third-parties who were undertaking bad behaviour while using its marketplace. 

Walmart stated that it is employing artificial intelligence in its policy compliance efforts. However, it emphasised that such monitoring is overseen by “human management” alongside machine learning and automation.

Sellers have raised concerns about marketplaces’ use of “bots” to enforce policy, particularly when non-humans are involved in the appeals process.

To keep Walmart.com secure, it operates a multi-layered enforcement system with zero tolerance for bad actors, including:

• Vetting sellers prior to onboarding, including identity and business verification, with ongoing compliance reviews
• Pre-listing protections, such as restricting who may sell certain categories
• AI-driven and real-time monitoring of product listings for policy compliance and intellectual property infringement, overseen by machine learning, automation, and human management
• Clear policies with swift enforcement actions, including proactive removal of listings that violate rules and, when necessary, removal of sellers
• Brand protection tools that allow owners to flag issues
• Customer-centric policies, including store-based returns for Marketplace items
• Educating sellers to uphold and maintain high standards.

Walmart also outlined initiatives to combat counterfeits, noting that “today’s bad actors are more sophisticated, using technology to scale their operations faster than ever.”

It asserted that robust, coordinated action between the public and private sectors is essential for addressing the evolving threat.

One method Walmart employs to tackle fakes is by “sharing intelligence on bad actors with other retailers and marketplace platforms through the Anti-Counterfeiting Exchange.”

The path forward: Integration & simplification

The future of supplier collaboration appears to lie in the successful integration of various digital tools and platforms, rather than the proliferation of standalone solutions. PwC's approach focuses on creating coherent systems that enhance rather than complicate procurement operations.

Patrick says: "We work closely with clients to design intuitive solutions that seamlessly integrate compliance into daily operations and then select the right orchestration solution to mitigate the residual technical complexity."

This ensures that compliance and supplier management become integral parts of procurement activities rather than additional burdens.

As organisations continue to adapt to regulatory shifts and operational challenges, the emphasis on user-friendly, integrated systems will likely become even more pronounced.

The evolution towards AI-driven supplier collaboration represents more than just a technological upgrade – it signifies a fundamental shift in how procurement teams approach inventory management and supplier relationships.

By using real-time data sharing and automated compliance monitoring, organisations are positioning themselves to achieve greater efficiency, reduced risk and stronger supplier partnerships in an increasingly complex business environment.