A shocking revelation from the Commerce & Contract Management Institute (CCM Institute) reveals that a staggering 80% of businesses are vulnerable due to a lack of clear contract accountability. But here's where it gets controversial: this report, titled 'Benchmark report 2025: The Race Is On - Navigating Uncertainty Through CCM Resilience,' argues that technological advancements alone won't save the day.
The Report's Findings:
According to the CCM Institute's global study, the majority of organizations are operating under high uncertainty, yet many lack the governance frameworks to ensure contracting success. This lack of accountability is hindering operational performance, despite increased investment in digital tools and automation.
AI's Role in Contracting:
Interestingly, the report highlights a shift in perception towards AI in contracting. Over 80% of organizations now expect AI to play a major role within the next two years. AI is no longer just for contract repositories; it's being utilized for creation, drafting, summary generation, and review. The extraction of obligations is another area where AI is making its mark.
The Divide Between Buy-Side and Sell-Side:
A concerning gap has emerged between buy-side and sell-side organizations. Suppliers are outperforming buyers by over 20% across all performance metrics. This disparity is attributed to differences in leadership alignment, organizational design, and investment in contract lifecycle technologies. Sell-side units have clear commercial governance, while buy-side teams often lack structure, with many reporting to procurement or finance functions focused on cost control rather than performance.
Technology Adoption vs. Capability Gap:
While the sell-side boasts a 37% technology advantage, the report emphasizes that digital tools alone don't bridge the capability gap. Digital systems require defined accountability and leadership to deliver real value.
Leadership and Resilience:
The report identifies leadership, structure, and talent development as crucial for commercial resilience. High uncertainty is linked to poor leadership quality, unclear roles, and organizational confusion, hindering progress.
Sirion's Perspective:
Sirion, a leading AI-native CLM platform, believes that the recognition of commercial and contract management excellence is growing. However, the challenge lies in translating this awareness into tangible change. Sirion's approach integrates AI into the system, combining data, context, and intent to guide decisions and actions.
The Way Forward:
The report concludes that while the strategic importance of contracting is acknowledged, structural changes are lacking. It urges organizations to establish clear ownership, strengthen leadership accountability, and align technology investments with governance outcomes, similar to the Contract Management Standard (CMS) principles. Adopting the CMS framework can help leaders bridge the accountability gap.
About the CCM Institute:
The CCM Institute aims to enhance global standards in buying and selling through rigorous research. Their work influences policy and practice, improving the exchange of goods and services for better trading outcomes. Founded as a non-profit, it is supported by World Commerce & Contracting and NCMA.
About World Commerce & Contracting (WorldCC):
WorldCC is a global non-profit dedicated to improving trading relationships. With a vast membership, they provide research, standards, training, and resources to enhance commercial and contracting outcomes.
About Sirion:
Sirion is an AI-powered platform revolutionizing contract management. By combining AI agents with a conversational interface, they've transformed enterprise contracting. Trusted by top brands, Sirion manages millions of contracts worth billions, and relationships with suppliers and customers worldwide.
About NCMA:
NCMA is the leading professional association for contract management professionals, offering certification, education, and research to elevate global contracting standards.
Contact:
For more insights, contact Kate Hodgins at the CCM Institute via email or visit their website.
