5 Key Stats from Our State of CLM Report

Icertis recently published our first ever State of CLM Report, pulling together 33 datapoints from a range of Icertis-sponsored research that speak to where contract management technology is today, and where it is going.

If you haven’t read the report yet, you should. Now. But if 33 datapoints seems daunting, here are five key stats to get you started.

29% of the average company’s workforce takes part in contract management.

This number, from World Commerce & Contracting’s Benchmark Report, underscores how ubiquitous contracts are in an organization. The average Fortune 500 company employs 58,000 people, meaning some 16,820 may be involved in contract management. Just think about the impact inefficient contract management can have when scaled across that much of the workforce!

8.6% of a contract’s value is lost due to missed obligations

This figure, also from World Commerce & Contracting, has long been one of the most closely tracked figures in contract management. WorldCC has found improvement, year-over-year, on this figure (at the height of the pandemic, it reached over 10%!), but the missed value remains material, especially when we scale it out to a Fortune 500 company. Considering the median revenue for the Fortune 500 is $42.1 billion, 8.6% is missed contract value can easily exceed $1 billion.

60% of companies are considering contract management software updates in the near-term

According to the Blickstein Group’s annual Law Department Operations Survey, well over half of all companies plan to either update their existing CLM system or, in cases where they don’t have a CLM in place, deploy a solution, in the next year. This stat demonstrates the remarkable appetite there is for digitizing contracting processes and improving contract performance.

94% say generative AI will help them analyze risk and compliance in contracts

In the report “AI in Contracting, From Untapped Revolution to Emerging Evolution,” the potential for AI to transform contracting is clear, as the stat above demonstrates. This is hardly the only statistic demonstrating the promise of AI. The Blickstein Group’s survey found that 85% of legal operations professionals believe they’ll be using AI in the next three years.

44% of CPOs have been involved in an AI project in the last year – and they’re not alone in the c-suite

ProcureCon’s annual CPO Survey found significant involvement for procurement leaders in AI projects, again showing how AI is already impacting how businesses work. AI is clearly a c-level priority—Icertis’ own survey found that 34% of c-suite leaders feeld the CEO should own the company’s generative AI budget.

This is just a sampling of the information available for those interested in investing in contract lifecycle management technology.

To learn more, access to the full report here.