Precoro has launched an AI Contract Agent designed to scan agreements, produce summaries and answer questions inside its procurement platform, in an effort to help businesses identify risk and protect margins.
The move comes as many companies still rely on long PDF contracts that bury critical obligations such as renewal dates, termination rights, penalties, payment conditions, discounts and service commitments. Deloitte said in 2023 that average contract value erosion stood at...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
8.6%, with top performers close to 3% and the weakest above 20%, underlining how costly missed details can become.
There is also a security dimension. Microsoft’s Work Trend Index found that 78% of AI users bring their own AI tools into the workplace, raising the possibility that staff may paste confidential supplier contracts into public systems simply to check a clause or prepare for a negotiation. Precoro says its alternative keeps that work inside its own environment, where contract intelligence is tied to procurement records, purchase orders, invoices and supplier data.
The company claims the tool can extract key information from individual contracts or bulk uploads of up to 50 documents at a time, creating structured contract records in the system. Where information is incomplete, it generates a draft for later review rather than halting the workflow.
Precoro says the agent then condenses agreements into six areas: key factors, upcoming dates, favourable terms, unclear or missing points, risks and conflicts, and recommended next steps. Users can also ask direct questions against a specific contract, such as whether there are late-delivery penalties or whether termination is possible before renewal.
The system is also meant to compare terms across the wider contract library. Procurement teams can ask which vendor offers the strongest payment conditions, or which agreements are due to expire in the next quarter. A widget on the contract management page flags impending expirations, which Precoro argues should help companies avoid unwanted auto-renewals and last-minute renegotiation.
According to reviews from ITQlick, Software Finder, Wheelhouse, NitDit, Featured Customers and TrustRadius, Precoro is already known as a cloud-based procurement tool focused on automating requisitions, approvals, purchasing and budget tracking. Users generally praise its ease of use, spend visibility and customer support, while some note that advanced features may require training and that further improvements could be made in inventory and mobile functionality.
Precoro says the new contract capability is aimed at procurement, legal, compliance and finance teams alike. For buyers, it is meant to speed onboarding and strengthen negotiations. For legal and compliance staff, the company argues it offers a first pass at identifying risks, conflicts and ambiguous wording. For finance teams, it is intended to make margin-threatening clauses more visible, from annual price increases to narrow exit windows and missed discount opportunities.
The broader pitch is familiar: to move procurement away from manual review and towards a more centralised, automated workflow. Precoro describes itself as a platform that brings requests, approvals, purchase orders, invoicing, supplier management and spend control into one system, and says more than 1,000 businesses already use it.
Source: Noah Wire Services
