AI and Procurement: hype or real competitive advantage?

In procurement today, AI is one of the hottest topics. But is AI truly transformative, or just another media buzzword? According to the State of AI in Procurement 2025 report, as many as 80% of Chief Procurement Officers consider investing in AI a strategic priority over the next 12 months, with 66% ranking it as high priority (Art of Procurement, 2025).

AI does, in fact, bring tangible benefits such as:

Operational efficiency A KPMG study estimates up to an 80% reduction in time spent on repetitive procurement processes.

Real savings Intelligent spend analysis in indirect procurement can generate up to 15% savings in a single year (Consulting Quest, 2025).

Risk management AI helps identify early signals of financial or operational risk before they affect the business, improving compliance and auditability. Predictive monitoring means safer, more reliable decisions.

Strategic decision support AI tools don’t just analyze trends; they also suggest optimal strategies based on past performance, market conditions, and risk scenarios (Art of Procurement, 2025).

AI adoption also comes with limitations that must be carefully considered. IBM estimates that 59% of CPOs see predictive analytics as one of the most important applications of generative AI, but only those who manage to make their first implementation truly work see lasting benefits (IBM).

In addition, many current systems remain unsatisfactory: research by Airbase shows that only 30% of users leveraging AI in procurement are “very satisfied.”

Other critical issues include:

• Bias in data models AI is only as powerful as the data it is trained on. If historical procurement data contains imbalances, distortions, or implicit preferences (e.g., favoring suppliers from certain geographies or of a particular size), AI will tend to replicate or even amplify them. This can lead to less diverse supplier bases or reputational risks, especially in ESG-driven contexts where inclusion and sustainability are strategic. To mitigate this, it is essential to rely on verified and up-to-date data, while introducing ongoing monitoring and review mechanisms. AI should be applied to operational, repetitive, low-value tasks — but critical evaluation and final decision-making must remain in human hands.

• Lack of internal training Many AI projects fail not because of the technology itself, but because the people using it are not adequately prepared. Procurement is built on analytical, negotiation, and relational skills: AI must be seen as a tool that empowers professionals, not one that replaces them. Training teams to interpret AI-generated data, validate insights, and embed these tools into daily processes is essential. Without a widespread digital culture and strong governance, there is a real risk of creating a “trust gap” between what the machine suggests and what people are willing to act on.

• Ethics and data privacy The use of AI raises important risks related to transparency, accountability, and the handling of sensitive data. With the AI Act (effective August 1, 2024), the EU classifies AI systems into four risk levels: unacceptable, high, limited, and minimal — plus a separate category for LLMs (GPAI), which come with specific transparency obligations. Solutions classified as limited or minimal risk must always include human oversight, meaning that AI assists but does not make decisions autonomously. This approach safeguards privacy, ensures accountability, and promotes trust while remaining consistent with ESG principles. For further details, here’s a clear and comprehensive overview of the AI Act.

To sum up, the true value of AI as a competitive advantage only emerges when:

• there is a clear problem to solve (e.g., wasted time, slow approvals, fragmented or low-quality data);

• AI is used to empower people, not replace them;

• technology, processes, and team skills are aligned so that AI insights translate into effective actions and informed decisions.

AI is not a wave to ride blindly. But when applied to the right pain points in procurement, it can become a powerful, tangible strategic lever that truly makes a difference.

If you want to see how AI can be used in a practical and safe way, start with tools designed specifically for procurement. With Soource, you can identify new suppliers, access accurate and reliable data, and manage your vendor base as a true strategic asset. All with an AI solution classified as limited risk, an intuitive interface, and the constant support of a dedicated training team.

Try it with a live demo