NEW YORK CITY, NY – 07/11/2025 – (SeaPRwire) – Industry analysts are increasingly pointing to contract visibility as procurement’s “next major automation frontier.” Research firms note that while AI use cases in sourcing, supplier risk and payment controls have matured rapidly, contract lifecycle management remains stubbornly manual inside many organizations — and the gap is now costing real money.
Against that backdrop, Vallor — an AI-agent platform that automates contract operations for procurement — today published a new research paper, “From Manual Chaos to AI Opportunity: The State of Contract Management in 2025,” presenting data that suggests contract management is emerging as a quantifiable drag on revenue capture and compliance.
The report reflects feedback from 120 procurement and legal practitioners across mid-market and enterprise organizations. The most material trendline: access to agreements remains fragmented. Only 48% of respondents said contract records are centralized; the remainder piece together obligations via shared drives, disparate storage locations, email threads or partial tool stacks — environments that make terms effectively invisible.
Manual work is also entrenched. Approximately 59% still redline by hand, 46% track renewals manually, and 44% produce reporting without automation — slowing deal velocity and burying teams in repetitive administrative steps. Nearly one in three respondents acknowledged that tangible value — such as rebates or negotiated incentives — has been lost because corresponding agreements were not searchable or discoverable when needed.
Independent studies continue to reinforce the materiality of this category. Estimates suggest that poor contract management can erode 8–9% of annual revenue, accumulating to nearly $2 trillion in global losses.
The Vallor research frames the business consequences in three clusters: slower execution, reduced realization of negotiated savings, and increased compliance exposure as regulatory requirements accelerate across privacy, ESG and sector-specific domains.
The study also signals a shift in posture around AI. Twenty percent report heavy deployment already, 34% are in pilots, and 33% are in active exploration. Eighty percent rate improved contract visibility or automation as “important” or “critical” within the next 12 months. The narrative is transitioning from “experimentation” to “imperative.”
Vallor executives argue that AI-driven contract intelligence is now a structural control, not an incremental convenience: the organizations that use AI agents to continuously interpret terms — not just store them — will move faster and lose less.
The full report is available now. Prospective users may request a demo at https://vallor.ai/book-a-demo.
Vallor’s platform deploys AI agents to execute contract work on behalf of procurement teams. The company refers to this model as “Service-as-Software” — where AI does the work, not just augments it — establishing a new paradigm of active contract automation across the supplier lifecycle.