AI adoption in contracting is rising, but trust and data will decide the winners
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As AI becomes a staple of daily contracting, organizations are discovering that adoption does not automatically equal impact. The Commerce & Contract Management (CCM) Institute’s latest report, "AI in Contracting 2026: From Experimentation to Impact," reveals a landscape where organizational enthusiasm has surged, yet institutional maturity remains the next great hurdle.
Produced in collaboration with World Commerce & Contracting (WorldCC) and Icertis, the fourth annual study draws on insights from 518 global professionals. The findings highlight a critical tension: while executive demand for high-speed decision-making is at an all-time high, nearly 80% of organizations are struggling to build the adaptability and data foundations required to meet these expectations.
The rise of institutional realism
The report identifies a significant pivot in how businesses position themselves. Organizational enthusiasm for AI jumped from 36% in 2025 to 56% in 2026. This 20-point increase reflects a move toward formal adoption and governance. Conversely, practitioners' personal enthusiasm moderated from 77% to 70%, signaling a shift from abstract optimism to a necessary "practitioner realism" as teams navigate real-world data fragmentation and ethical concerns.
Trust and data: The twin gating factors
For AI to scale, organizations must overcome persistent barriers. The report finds that security and privacy remain the top concern for 68% of respondents, while data output quality, including the risk of AI hallucinations, acts as a barrier for 55%. Furthermore, AI thrives on structured data, yet many current environments suffer from inconsistent practices and poor lifecycle visibility, which risks accelerating dysfunction rather than improving outcomes.
Bernadette Bulacan, Chief Evangelist at Icertis, argues, "AI is not a 'silver bullet' that fixes a broken process; it is a powerful enabler for a broader solution. Our research shows that while practitioners are eager to use AI for high-value tasks such as risk assessment and contract performance monitoring, they are rightfully cautious about delegating without guardrails. The winners in this space won't just be those who adopt the fastest, but those who ensure their AI is built on a foundation of data discipline and cross-functional integration."
Governance over tooling
The report argues that the next phase of AI is an operating model decision, not just a technology rollout. Leaders are now tasked with defining where AI informs a decision and where human judgment must prevail.
"We are witnessing a story of transformation, not elimination. When forced to prioritize value, our respondents consistently rank innovation and strategic capability above mere cost reduction. AI represents an opportunity for fresh thinking and broad organizational efficiencies, but simply moving today’s inadequate processes into AI systems will only accelerate dysfunction. To truly realize value, leaders must use AI to reinforce disciplined commercial decision-making rather than bypass it,” comments Tim Cummins, Executive Director of the CCM Institute.
The vision for 2026
To navigate this transition, the community must move beyond viewing AI as a simple efficiency tool and instead frame it as an enabler of superior commercial judgment and adaptive decision-making. Realizing these benefits requires a deliberate investment in people, defining new role profiles and upskilling practitioners to work effectively alongside machines, while simultaneously addressing governance and authority early to ensure AI is trusted in live environments. Ultimately, the greatest value lies in integration: using AI to bridge the silos between Legal, Procurement, Finance, and Operations, focusing on shared commercial objectives rather than incremental tool deployment.
Download AI in Contracting 2026: From experimentation to impact here.