Artificial intelligence (AI) is revolutionizing procurement by transforming decision-making velocity in complex global markets. AI is being increasingly used to enhance speed and accuracy, drive data-driven decision-making, and improve risk management. By automating routine tasks, such as supplier searches, contract reviews, and invoice processing, AI frees up procurement teams to focus on strategic initiatives.
One of the key benefits of AI in procurement is its ability to analyze vast amounts of data to provide real-time insights into spending patterns, market trends, and supplier performance. This enables procurement teams to make informed decisions and respond quickly to market changes, disruptions, or opportunities.
AI-powered tools are also being used to monitor supplier risk, detect potential disruptions, and identify compliance issues. This ensures proactive risk mitigation and enables procurement teams to develop strategies to mitigate potential risks.
In addition, AI is being used to drive strategic agility in procurement. By analyzing data and identifying patterns, AI enables procurement teams to optimize inventory levels, identify cost-saving opportunities, and renegotiate contracts.
Several organizations have successfully adopted AI in procurement, achieving significant benefits. For example, Unilever cut supplier search time by 90% and expanded supplier diversity using AI tools. The Government e-Marketplace (GeM) in India achieved 9.75% median price saving across orders totaling Rs 13.6 lakh crore by leveraging machine learning and data analytics.
