Pramata, the leading provider of Enterprise Grade Contract AI, has officially announced the launch of its all-new Tariff Risk Analyzer, which is essentially a contract AI Agent focused on helping businesses understand and respond to the impact of supply chain and vendor disruptions caused by recent tariff policy changes.
According to certain reports, the stated Tariff Risk Analyzer banks upon a company’s contract data to calculate the impact of newly established tariff structures on supply chain business relationships. Once that is done, the solution also generates recommended next steps to address the detected disruptions.
To understand the significance of such a development, we must take into account how current tariff policy changes have affected businesses across almost every sector, including the automotive industry, consumer electronics, manufacturing, and retail.
In fact, if we go by the word of Deloitte Global Economics Research Center, US’ still-ongoing negotiations over tariff rates with trade partners continues to birth severe uncertainties in around business circles.
Against that, Pramata’s latest brainchild allows for users to respond to challenges with speed and proficiency. For instance, the solution’s Tariff Risk Dashboard will offer users a rather comprehensive overview by covering key insights on high- versus low-risk vendors, notice periods, missing protections, and more.
More on the same would reveal how users can view contract renewal timelines and create charts to highlight risk distribution across vendor contracts. The risk analyzer also delivers, at your disposal, various meaningful insights into when the organization may have limited negotiation leverage due to proposed tariff-related price changes.
Markedly enough, as the solution indexes and analyzes all business’ contracts, it can seamlessly address the top challenges legal and procurement departments face due to current tariff policies. These challenges may include compliance deadlines, regulatory penalties, revenue leakage, delayed contract approvals, impaired business decisions, litigation exposure, planning limitations, and audit failures.
“The primary question for business owners right now is less about how they respond to the tariff changes and more about how they can continue to operate in this world of uncertainty. The current economic climate is focused on tariffs, but the tariff fluctuations are really a subset of Vendor Risk Analysis which is a hot button for any business that is part of the international supply chain structure,” said Praful Saklani, CEO of Pramata.
Talk about the whole value proposition on an even deeper level, we begin from a facility focused on ensuring proper enforcement of contracts. Pramata’s Tariff Risk Analyzer arrives on the scene bearing an ability to help procurement teams hold vendors accountable to their contractual obligations.
Next up, there is the potential for proactive risk assessment. This translates to the fact that, when tariff policies change or vendors attempt to invoke a price adjustment clause, the Tariff Risk Analyzer can jump in to provide critical insights. These insights will further enable real-time view of risks through portfolio-wide visualizations, as well as identification of non-standard tariff clauses, missing tariff-protection language, etc.
“How do you run a business when the tariff policies are in flux and, likely, will be for an indefinite length of time? It all goes back to the organization’s contracts—business contracts lie at the center of how tariff policy impacts our economy. Pramata’s Tariff Risk Analyzer answers the most pressing questions businesses have right now and offers solutions to address real-world problems,” said Saklani.
Another detail worth a mention is rooted in the solution’s promise to facilitate auto-identification of specific clauses. You see, apart from searching for keywords, Pramata’s Enterprise Grade Contract AI also comprehends the legal and commercial intent of contract language, thus enabling the Tariff Risk Analyzer to automatically identify tariff-related provisions.
Among other things, we ought to mention how businesses can implement Pramata’s standard Tariff Risk Analyzer or work with Pramata’s team to customize the solution to fit the business’ particular needs.
“There are so many unknowns right now around tariff structures and it’s having a debilitating effect on business owners and their ability to manage their business. Our Tariff Risk Analyzer identifies key details and contract language associated with tariff changes, including variable pricing structures, taxation changes, and renewal terms,” said Saklani.
