Icertis, a global leader in AI-powered contract intelligence, has released its 2025 executive insights survey, Powering Profitability: The New Economics of Customer and Supplier Relationships, shedding light on revenue leakage and the growing role of AI in business operations. Based on responses from over 1,000 C-suite leaders, the survey found that 95% of Indian executives believe they are “leaving money on the table” during contract negotiations. After contracts are finalized, businesses reportedly lose up to 9% of a contract’s overall value, leading to millions in unrealized revenue and impacting profitability.
Gaps in CFO Awareness on Revenue Leakage
A significant gap exists between CFO perceptions and reality in contract management. While nearly all CFOs express confidence in their revenue collection from customers and suppliers, they face substantial revenue leakage from uncharged fees (44%), late payments (40%), and missed discount opportunities (40%)—all regulated through contracts. The survey highlights the need for improved contract oversight to maximize revenue and minimize losses.
Inflation Protections and Compliance Risks Overlooked
Amid inflation concerns, contracts are emerging as a key asset to combat rising costs. However, more than 40% of executives say their businesses are not incorporating inflationary pricing protections, missing a critical opportunity. Regulatory compliance is also a challenge, with 70% of executives feeling confident in their preparedness despite nearly half facing fines over the last five years. This confidence suggests a potential risk in rapidly evolving regulatory environments, where commercial agreements are essential for maintaining compliance.
India’s Leaders Lead in AI Optimism, with Legal Sector Poised for Transformation
India’s C-suite is optimistic about AI’s impact, with 66% planning to implement AI tools in 2025. Notably, Indian executives uniquely consider AI’s potential in legal functions, which ranked in their top five departments for AI-driven cost savings alongside finance, marketing, IT, and HR. This perspective sets India apart as a market prepared to leverage AI in areas beyond traditional applications.
Strong Belief in Artificial General Intelligence (AGI) in India
The survey also reveals that 77% of Indian leaders anticipate AGI will influence business operations in the coming year, compared to 60% in the US and just 34% in the UK. This optimism positions India as a leading market for exploring AI’s capabilities, reflecting its executives’ readiness to integrate advanced AI tools into their strategic plans.
Conclusion: Strategic AI Adoption Essential to Maximizing Contract Value
The survey underscores the importance of strategic contract management and the adoption of AI in safeguarding revenue, managing inflation, and ensuring compliance. With India’s C-suite leading in AI enthusiasm, particularly in legal and regulatory functions, businesses have an opportunity to capitalize on AI-driven insights to address revenue gaps and better navigate complex global markets.
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