Generative AI promised to transform procurement, but Gartner’s latest Hype Cycle suggests the reality is proving harder to achieve. While some companies are beginning to extract value through automation and cost reduction, many are struggling with fragmented data, complex integrations, and unrealized expectations.
AI Stalls in Procurement’s Early Rollout
Gartner’s 2025 Hype Cycle for Procurement and Sourcing Solutions places generative AI in the “Trough of Disillusionment,” a stage where initial enthusiasm fades as early experiments fail to meet expectations. The report notes that while the technology has delivered efficiency gains for select adopters, most organizations face hurdles in data quality and platform integration that slow returns.
The Hype Cycle outlines five phases of adoption, beginning with the “Innovation Trigger” and peaking at the “Plateau of Productivity.” For generative AI, Gartner projects that mainstream utility may still be five years away. Until then, adoption is likely to be uneven, with risks for companies that invest too early without the right infrastructure.
Kaitlynn Sommers, Senior Director Analyst in Gartner’s Supply Chain practice, said that generative AI is showing measurable benefits in contract management and source-to-pay activities, but warned that “fragmented and low-quality data across procurement systems can hinder accurate outputs.” Integration challenges remain particularly acute for companies attempting to bolt new AI tools onto legacy platforms.
Promise Meets Practical Barriers
Procurement teams are deploying generative AI for tasks such as contract drafting, project scoping, and workflow automation, freeing staff to focus on higher-value negotiations and supplier strategy. Early adopters are beginning to capture savings, but common obstacles include inconsistent data, user resistance, and concerns about job displacement.
Regulatory uncertainty compounds the issue. Questions around data privacy, intellectual property, and labor impacts continue to cloud adoption. According to trade reports, EU regulators are already pushing for tighter controls on AI in procurement, mirroring broader moves to clarify responsible use across industries.
Still, Gartner argues that waiting carries its own risks. “Organizations that delay action on integrating Gen AI into procurement processes risk falling behind as early adopters overcome these challenges and realize tangible benefits,” Sommers said in an official statement.
The firm advises companies to prioritize investment in standardized data infrastructure, explore process-specific AI tools rather than generic solutions, and upskill teams to ensure adoption translates into operational gains.
The Next Competitive Divide
While disillusionment dominates the current stage, Gartner expects generative AI to enter the “Slope of Enlightenment” as more success stories emerge and second-generation platforms mature. The inflection point may determine a competitive divide: companies with clean data foundations and adaptable processes will scale faster, while those that delay risk seeing procurement efficiency gaps widen.
