AI IN PROCUREMENT
WHY CONTRACTING AI DELIVERS RESULTS
Contracts provide what other procurement functions often can’ t: structured, reliable, essential data:
On the plus side, this data:
• Is already organised with defined sections, standardised language and clear hierarchies
• Serves as the definitive source of truth for supplier relationships, pricing, obligations and commitments
By contrast:
• Spend analysis suffers from wildly inconsistent ERP data
• Supplier discovery faces scattered, unstructured information from across the internet
With contracting, AI has something concrete to work with, which explains why teams see value faster and more reliably than in other applications.
The benefit scores are striking from Ironclad’ s research: finance teams rate contract insights at 9.2 / 10, manufacturing teams score renewal tracking at 8.3 / 10, technology companies rate compliance monitoring at 8.8 / 10 and business services score risk assessment at 8.7 / 10.
Ironclad’ s report explains contracting’ s lead with precision: contracts are already organised documents with defined sections, standardised language patterns and clear information hierarchies. They’ re the definitive source of truth for supplier relationships, pricing terms, obligations and commitments.
This structure enables verifiable AI outputs. Contract AI can cite
106 January 2026