Contracting is complex, with multiple types of deals and stakeholders driving competing priorities within an organization. Incorporating AI can help teams discover new levels of value and productivity but can add to contracting complexities if not properly managed or understood.

In this webinar, we learned how Amgen is actively tackling these scenarios and building a contracting process that it can grow with. Because there’s no denying it: AI is here to stay.

Below are a few things we’ve learned from Amgen’s journey.

1. Always identify your CLM needs up front

Knowing that you want to improve your contracting process isn’t enough. If you aren’t crystal clear on what your organization needs, you won’t be able to implement the right solution.

Amgen identified the following needs:

• Automated Contracting Processes – Amgen was looking for a solution to automate as much of the contracting process as possible to increase efficiency and reduce manual work.
• Easy Access to Organized Contractual Metadata – This metadata would inform their sourcing and contracting decisions, making it easier to manage and analyze contracts effectively and improve strategic decision-making.
• Visibility Into Contract Obligations and Payments – Amgen needed to see how contracted items equaled the line items paid. This was critical for financial transparency.

2. Have a well-thought-out implementation strategy

The transition to a native AI CLM system is not without its challenges, which is why an implementation strategy is incredibly important. Amgen’s implementation strategy involved:

• A Phased Implementation – Amgen adopted an incremental release approach. This “test and learn” environment ensured they could adjust each implementation phase based on real-time feedback and learnings.
• Early Planning and Integration – There is always excitement and pressure to deliver quickly. A slower planning phase can be better for seamlessly integrating your CLM solution with existing systems and workflows.
• Continuous Release Strategy – Amgen has completed over thirty additional releases since its initial release, indicating a commitment to ongoing improvement and expansion of the CLM’s capabilities.

3. Start incorporating AI capabilities is changing the CLM landscape

We’re still only scratching the surface, but AI, and now GenAI, is ready to change how businesses manage their contracts. Look for:

• Conversational Interfaces for CLM – AI is making CLM platforms more interactive, allowing users to ask questions and get assistance with tasks such as creating first drafts or identifying overdue actions.
• Auto-Redlining – AI can help identify specific clauses and assist in the redlining process. It can also suggest improvements to existing clauses to better articulate the intended message.
• Risk Identification and Insight Generation – GenAI can identify conflicts within contract language, including variations between the main contract and its addenda.
• Predictive Actions – AI can predict next steps in approval workflow, recommend actions, and even auto-generate renewal drafts.

Successful Integration and CLM Benefits

Amgen’s success story is a testament to the power of AI CLM solutions in transforming enterprise contracting. By integrating a CLM into its contracting processes, Amgen created a more collaborative environment for authoring and drafting contracts, reduced cycle times, and improved the overall contracting experience

Be sure to watch the full webinar to learn more about Amgen’s successful CLM integration and how to put these lessons learned into action. Or reach out and we’ll walk you through it one-on-one.