Workday Report Reveals Unmanaged Contracts Lead to Financial Losses

In a revealing report released on July 9, 2025, Workday, Inc. (NASDAQ: WDAY), a leader in AI-driven enterprise management software, has identified significant financial losses and missed business opportunities stemming from unmanaged contracts within organizations. The report, titled "The Contract Intelligence Index Report," highlights a critical issue in corporate governance: a staggering 76% of employees lack clarity on who is responsible for managing contracts, leading to inefficiencies and lost revenue.

The findings of the report underscore a widespread concern in the corporate world. Jerry Ting, Vice President and Head of Agentic AI at Workday, stated, "Contracts are packed with critical business information that's often buried across hundreds of pages. With the rise of AI agents, we can finally turn contracts into living, intelligent assets." This sentiment is echoed by the report’s findings which suggest that without clear ownership, contracts often remain static documents, preventing organizations from leveraging the valuable insights they contain to drive business growth.

Key findings from the report reveal that the lack of contract management not only leads to untapped revenue opportunities but also poses substantial legal and operational risks. For instance, half of the legal professionals surveyed (50%) reported losing money due to unintended auto-renewals of contracts, a situation exacerbated by poor communication within and between departments. Sales and marketing teams appeared to be the most affected, with 60% indicating financial losses attributed to these unmanaged contracts.

Moreover, the report indicates a significant gap in legal oversight. While 85% of legal professionals claim they are involved in contract approvals, only 67% of their non-legal counterparts agree, suggesting that a third of employees may bypass legal processes. This discrepancy could expose organizations to regulatory risks and unfavorable contractual terms.

The fragmentation of contract data across various platforms is another critical issue identified in the report. Contracts are often scattered across shared drives, CRM systems, individual desktops, and even paper records. This disorganization not only complicates access to vital information but also inhibits effective collaboration among departments, resulting in slower processes and stifled innovation. According to the report, 41% of respondents believe that contract processes are too slow, impacting productivity in research and development, as well as engineering departments.

The implications of these findings are profound. As organizations increasingly rely on contracts to govern relationships and generate revenue, the lack of effective contract management could hinder their competitive edge in the marketplace. The report advocates for a paradigm shift towards true contract intelligence, which involves moving beyond basic contract administration to harnessing the insights these contracts provide.

Workday's research was conducted by Provoke Insights in March 2025, encompassing a survey of 1,250 U.S.-based legal and non-legal enterprise employees across various industries. The findings are part of a broader effort to promote awareness around the importance of contract management in facilitating business growth.

As businesses continue to navigate a complex and rapidly changing economic landscape, effective contract management will be crucial in unlocking potential revenue streams and mitigating risks. The recommendations from the Contract Intelligence Index Report serve as a wake-up call for organizations to reassess their approach to contract management and to consider the integration of advanced technologies, such as AI, to enhance their operational efficiency and business outcomes.