Within UCSF’s Supply Chain Management (SCM) Strategic Procurement department, the initial contract review is one of the most time-consuming tasks our buyers face. This task requires meticulous attention to detail and focus, as each article of the University of California (UC) terms and conditions - 26 in total - must be accounted for. Supplier contract templates can vary significantly, with unusual terms, formats, or even digital versions on their websites. As a result, this initial review can take anywhere from one to four hours and can be challenging.

Introducing LegalSifter: AI-Powered Contract Support
Strategic Procurement made a significant stride in reducing the time spent on the first read-through of contracts by implementing LegalSifter, a machine learning and AI-powered contract support tool, this June. LegalSifter checks for each of the UC’s terms in near-real time. The software provides buyers with a clear understanding of which terms are included and excluded in the contract, offering valuable insights into contract risk and the potential complexity of negotiations.

Early Results Show Time Savings
Early feedback has been positive, with buyers reporting a decrease in the time required for the initial review—especially with complicated contracts. Requisitions with contracted suppliers processed by Central Procurement in July took an average of 1.85 days—significantly faster than the 4.27 days required for non-contracted supplier requisitions.

Next Steps: Building a Smarter Contract Library
Strategic Procurement plans to use LegalSifter to extract information from our contracts (nearly 500) to better understand the risk profile of our current portfolio. We intend to store this data in BearBuy—along with AI-generated summaries, clear contract names, and descriptive keywords—to make it easier for everyone to locate specific contracts.

Commitment to Innovation
AI will continue to play an important role in our processes. By leveraging AI to streamline one of the most time-consuming tasks, Strategic Procurement is leading innovation and continuing our tradition of excellence, continuous improvement, and strong fiscal and administrative stewardship.