Why 2025 is the year of the Chief Contracting Officer 

You might not have heard much about the Chief Contracting Officer (CCO) yet, but that’s about to change. With many industries undergoing rapid digital transformation, organizations are starting to recognize that contracts are far more than just legal documents – they’re powerful tools that can shape everything from strategic growth to risk management. That’s where the CCO comes in.  

The role of the CCO 

This role is about overseeing the entire lifecycle of contracts, such as negotiating terms and conditions, but it’s also about ensuring those agreements support broader business goals. The CCO ensures that every contract, big or small, isn’t just a formality, but a strategic lever for organizational success. In fact, 2025 could very well be the year that this position becomes one of the most strategic in global organizations.  

Contracts are getting more complex 

Contracts used to be straightforward documents. You agree on terms, you shake hands, you sign. But today, they’ve evolved into sprawling, multi-party, multi-regulatory, multi-jurisdictional behemoths. Add to this the increasing adoption of artificial intelligence (AI), machine learning, and generative AI, and combine that with various global regulations. Did you know that Europe has one of the strictest regulations in place for any businesses that use any form of AI? Suddenly, what you’re managing is no longer just a document, but an entire ecosystem of interdependencies.  

(Don’t believe me? Get a sense of some of the contractual issues in AI transactions in this article from Morgan Lewis.) 

Contracts have more data than you think 

Contracts are packed with far more data than most organizations realize. Beyond the fine print, contracts hold critical insights on everything from content data, which covers the important information found within the contract, such as the names of the counterparties, term lengths and conditions, important dates, etc., to contract process data, which focuses on where the contract sits in your overall contract workflow and the details surrounding that stage in the contract lifecycle.  

To understand the different types of data, there are two concepts: descriptive data and dynamic data – both which are found throughout a contract’s pre- and post-signature lifecycle.  

Descriptive data provides information so that reports can reflect reality. It answers questions like:   

• How many contracts are in process?   

• How many suppliers are in Mexico?   

• When does the contract with Acme, Inc expire?   

Dynamic data provides answers to what is working and what is not. It answers questions like:   

• Are contracts moving through the process quickly enough?  

• Are you over-invested in Chinese suppliers?   

• Does the organization benefit more from three-year or five-year contracts?   

A CCO can unlock this hidden value, using contract data to spot inefficiencies, mitigate risks, and optimize negotiations. 

A CCO needs to think strategically about contracts so how can they unlock real value? Descriptive data tells you what’s happening right now, but dynamic data helps you understand what’s going to happen in the future. By analyzing these data sets, a CCO can make smarter decisions, such as: 

• Negotiating better contracts based on real performance data (e.g., renegotiating terms, changing suppliers, adjusting contract lengths). 

• Managing supplier risk by identifying areas where the business is overly reliant on specific suppliers or regions, like China, or making informed decisions about diversification. 

• Establishing better collaboration and communication by breaking down siloes. Contracts are managed by legal teams, procurement, finance, operations, and more. The CCO’s role is to break down siloes and make sure that data flows freely between teams. When everyone has access to the same data, whether descriptive or dynamic, you ensure that decisions are being made in sync and are aligned with overall business goals. 

A recent report from World Commerce and Contracting and Deloitte uncovered a surprising finding: 40% of contracts are not living up to their intended purpose. This gap in effectiveness is a wake-up call, signaling that businesses need strong, dedicated leadership in contract management – someone like the CCO – who can ensure that contracts are strategically leveraged for real impact. 

Implementing contract management technology 

A CCO is uniquely positioned to lead the adoption of contract management technology, which can significantly improve both efficiency and risk management. Contract lifecycle management (CLM) platforms can help CCOs and their legal teams automate time-consuming tasks, analyze contract data, and ensure they can implement an intelligent, strategic process to accelerate their business. Along with advanced AI capabilities, these platforms can handle everything from redlining to contract review, transforming contracts from manual processes into a strategic, data-driven advantage. The CCO now becomes the backbone of the organization, using data and insights to drive smarter decisions that fuel long-term growth. 

Conclusion 

As we look toward 2025, the role of the CCO will be central to how businesses navigate complexity and uncertainty. In times where contracts are now seen as strategic assets, the CCO will drive real value by ensuring every contract has a purpose. 

From managing complex contracts and navigating global regulations and sustainability reporting to harnessing technology and digital transformation, the CCO will be at the heart of an organization’s ability to thrive in these changing times. If you’re thinking about the future of contracting, it’s clear: the CCO is no longer a behind-the-scenes player. They’re leading the charge. 

Learn more about Agiloft’s Data-First Agreement Platform in our upcoming webinar on January 21 and learn how to let CLM handle the boring stuff.