Since the introduction of ChatGPT, organizations have shown a keen interest in exploring the applications of generative AI across various business functions, with procurement being no exception. As procurement has evolved from a back-office function to a strategic one, organizations are increasingly focused on transforming procurement operations by leveraging advanced technologies. While procurement has traditionally utilized technologies such as Robotic Process Automation (RPA), Optical Character Recognition (OCR), and basic analytics, the adoption of advanced technologies such as AI/ML is still in its early stages compared to more mature functions such as Finance and Accounting (F&A) and HR. However, the emergence of generative AI and growing enterprise interest in its applicability are expected to accelerate the adoption of next-generation technologies, including AI/ML, to drive further efficiencies and achieve better business outcomes across procurement operations.

Generative AI’s creative and cognitive capabilities offer multiple potential use cases across the Source-to-Pay (S2P) value chain, with some organizations already piloting generative AI-based solutions within procurement. It can potentially transform procurement operations by facilitating increased automation, offering decision support, and reducing manual intervention through virtual assistants. With the buzz around generative AI and its emerging use cases, it is imperative for organizations to prioritize the most impactful use cases while also being cognizant of the various challenges associated with the application of generative AI-based solutions in procurement.

In this viewpoint, we explore the current landscape of digital adoption in procurement, examining existing AI/ML-based solutions across the S2P value chain. The report also highlights the emergence of generative AI and its implications for procurement, exploring specific use cases within the procurement value chain and emphasizing the prioritization of these use cases for implementation.

Scope

All industries and geographies

Contents

In this viewpoint, we examine:

• The current state of digital adoption in procurement
• Use cases of AI-/ML-based solutions across the S2P value chain
• The emergence of generative AI and its implications
• Generative AI’s use cases within procurement operations and their prioritization
• Key considerations to ensure generative AI solutions’ successful implementation

Membership(s)

Procurement and Supply Chain

Outsourcing Excellence