A recent comprehensive survey of over 100 Chief Procurement Officers (CPOs) across Europe, North America, and Asia-Pacific reveals a significant shift towards integrating Generative AI (GenAI) technologies in procurement practices.
The survey, which involved over 100 CPOs from Europe, North America, and Asia-Pacific, found that 92% of respondents are closely monitoring GenAI capabilities. A significant 11% are already investing over $1 million annually in GenAI solutions for sourcing and procurement, a figure expected to double by 2025. This investment is enabling procurement teams to automate routine tasks and make strategic decisions based on actionable insights derived from market data and organizational spending patterns.
Recognizing the Value of AI in Procurement
Despite the early stages of GenAI adoption, 92% of CPOs are already identifying new opportunities that this technology can bring to their operations. Areas such as data analytics, contracting, and sourcing are leading the charge in GenAI application, with 38% of respondents piloting or deploying GenAI in their spend dashboards. The top three areas where value can be unlocked through GenAI include enhanced analytics and decision-making, productivity gains, and cost optimization.
Navigating the Challenges of GenAI Adoption
While the potential benefits of GenAI are clear, the technology is not without its challenges. The steep learning curve associated with GenAI means that upskilling is necessary, with 71% of respondents having limited to moderate knowledge of the technology. Data quality and privacy concerns also pose significant obstacles to GenAI implementation.
The Time for GenAI is Now
As one survey respondent noted, the use of GenAI is a game-changer for procurement, offering the opportunity to move away from transactional, low-value activity and apply strategic business partnering. Deloitte’s AIOPS.D platform, a tailored, AI-driven solution, is one such tool helping organizations embark on their GenAI journey. The platform offers prebuilt use cases that can be configured to the specific needs of each organization, helping to steer innovation and future-proof a GenAI-enabled procurement function.
