AI-powered productivity: Procurement

 Supply chain leaders face a world of increasing uncertainty. According to a recent IBM Institute for Business Value survey, geopolitical risks (61%) and global trade tensions (58%) top their list of concerns. In this volatile environment, organizations need more than reactive strategies—they need proactive intelligence to navigate disruptions with confidence and precision.

AI solutions running on cloud and embedded into large language models can enable procurement executives to replace ambiguity with clarity.

Revolutionizing source-to-pay workflows

The procurement landscape is undergoing a profound transformation. AI-driven automation is reshaping traditional processes, bringing newfound efficiency and agility to source-to-pay workflows. Our research shows this revolution is already underway, with 60% of organizations using AI for predictive analytics, 56% for accounts payable, and 55% for purchase order management.

These early adopters aren't just investing in technology—they're expecting tangible returns over the next two years. These organizations expect a 12% improvement in overall ROI, alongside 20% productivity gains, 14% operational efficiency increases, and 11% profitability boosts.
 

The agentic AI advantage

Agentic AI represents the next frontier in procurement intelligence. These sophisticated systems can identify optimal suppliers using multiple criteria, anticipate supply chain disruptions before they occur, and even draft strategic contracts aligned with business objectives.

While AI handles data analysis and routine processes, procurement professionals are freed to focus on relationship building and complex negotiations where human judgment delivers the greatest value.

Looking ahead to strategic benefits and ecosystem partnerships

Procurement leaders anticipate transformative outcomes from their AI investments. CPOs expect 41% greater efficiency in source-to-pay processes, 49% improvement in touchless invoice processing, 36% better compliance ratings, and 43% enhanced real-time spend visibility by 2027.

To accelerate these benefits, forward-thinking procurement executives are increasingly turning to ecosystem partnerships. The majority plan to strategically outsource key functions, with 88% targeting predictive analytics, 77% focusing on purchase order management, and 75% streamlining accounts payable through external expertise.

The future of procurement is strategic, data-driven, and AI-powered—enabling organizations to convert market volatility into competitive advantage.

For more details and key recommendations, download the Data Story.