AI shows promise reading and analyzing arcane contracts to unlock savings. McKinsey
The complexity of matching and analyzing contracts and invoices lends itself to AI. McKinsey covers the impact they are seeing.
A couple of interesting quotes:
Large productivity gains: One estimate sees procurement teams improving efficiency by 50 to 80 percent in certain activities, alongside a 5 to 10 percent reduction in overall procurement operating costs, by using gen AI assistants for tasks like drafting documents and analyzing spend.
… a proof of concept was conducted over three weeks, analyzing around 190 contracts in four different languages. The process identified an opportunity to save between 4 and 10 percent (€12 million to €30 million) on a total contract value of €293 million, through optimizing contractual terms and conditions. For this analysis, the average processing time per contract was about eight minutes, with an average evaluation accuracy of about 96 percent, whereas a manual review of these contracts would have likely taken several months to complete.