Overcoming FOMO: Forrester’s Ala Valente on GenAI & CLM at Zycus Horizon US 2024

At Zycus Horizon US 2024, Alla Valente, Senior Analyst at Forrester Research, shared expert insights on how organizations can strategically adopt Generative AI (GenAI) in Contract Lifecycle Management (CLM) without falling into the trap of FOMO (Fear of Missing Out) or FOMU (Fear of Messing Up).

 

Key Takeaways from Alla Valente’s Session:

 

• Understanding FOMO in AI Adoption: Many organizations hesitate to implement GenAI due to fears of either missing opportunities or making costly mistakes.
• The Role of GenAI in CLM: AI is already revolutionizing CLM by assisting in contract clause generation, negotiation strategies, and behavioral predictions.
• Practical AI Adoption Framework: Forrester’s model outlines five key areas where AI can provide real value, including content creation, risk management, and knowledge articulation.
• Regulatory & Compliance Considerations: Global regulations like EU’s Digital Operational Resilience Act (DORA) and cybersecurity laws emphasize the need for AI-driven contract oversight.
• AI Investment Trends: 73% of businesses plan to increase investment in GenAI in the next 12 months, with 56% already using AI at an enterprise-wide level.
• Overcoming AI Adoption Barriers: Companies must balance guardrails, governance, and strategic use case selection to ensure successful AI deployment.

Valente emphasized that organizations should start small, focus on tangible value creation, and avoid unnecessary complexity when implementing AI in CLM. Instead of succumbing to AI hype, businesses should take a measured and strategic approach to maximize impact.