Application Of Artificial Intelligence(Ai) For The Effectiveness And Risk Mitigation In Contract Administration

Efficient contract management is critical to project success. To minimise project failures, advanced digital technologies are suggested for contract administration, but they have yielded little success in practice. Therefore, this study evaluates the potential of Artificial Intelligence (AI) to fulfil the roles and responsibilities of contract administrator. A systematic literature review has been used to identify the key benefits of AI to measure contract performance against predetermined key performance indicators (KPIs) in relation to effective reporting and risk mitigation. Fifteen scholarly applied publications have been reviewed in this regard. Some studies suggest AI as the ideal alternative for effective and efficient contract administration. AI can automate the creation of monthly reports by producing standardized templates based on predetermined answers, and variables. AI can substitute contract administrator’s responsibilities, resulting in time savings and reduced human errors. Nevertheless, there are many pitfalls currently requiring a high level of human interaction to generate reports. The study suggests future research requirements to improve the functionalities of AI in relation to contract administration. A field study will be conducted in future studies to test the hypotheses developed under this literature review. The research design is explained in the later part of this paper. It is expected that construction organisations can embrace the transformative impact of AI in future to improve contract administration processes, enhancing operational reporting and risk management.