Icertis: The benefits of AI in procurement compliance

A type of artificial intelligence (AI) technology, Generative AI (Gen AI) has been making innovative waves in the procurement function. The technology is best known for its ability to produce various types of content including text, images, audio, video and synthetic data. The recent hype has been driven by the simplicities of its capabilities coupled with its quality output at speed. 

In a recent study conducted by contract intelligence company - Icertis - the company looks at the application of Gen AI in compliance processes. In particular, the study uncovers the pivotal role of Gen AI in addressing financial challenges, business process improvements, long-term strategies, and technology adoption.

Key findings: 

• 85% of professionals see most legal and compliance departments using Gen AI substantially in the next three years.
• 36% of professionals are seeing a positive impact of GEn AI on resource allocation, with 67% expecting it to allow more work to be done in-house, and 70% agree that wider adoption of the technology will lead to cost savings.
• Contract management is prime for the transformative capabilities of AI, however, currently, only 19% always rely on generative AI for pre-execution contract management such as contract generation and review. Less than 8% use Gen AI for post-execution contract management signifying a strong opportunity to expand its use in the end-to-end contract lifecycle. 
• Despite the opportunities, nearly 40% are unsure of Gen AI tools and 33% feel they lack access to the appropriate technology required for their role. As such successful adoption of Gen AI requires upskilling. 

“Legal professionals have an opportunity not only to establish policies for AI use but also to assert their leadership by embracing generative AI to address financial challenges, improve efficiency, and create greater value while upholding compliance standards,” said Bernadette Bulacan, Chief Evangelist, Icertis. 

“The opportunities stemming from generative AI are apparent, particularly in contract management, which is ripe for enabling enterprise-wide transformation. Icertis provides a significant advancement in contract-driven operations through AI by tapping into contract data to create more revenue, bigger savings, and less risk.”

To read the full study, click here.

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Other magazines that may be of interest: Supply Chain Digital, Manufacturing Digital

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