Why forward-thinking procurement leaders are embedding AI across sourcing, contracts, and supplier relationships and how you can stay ahead.
As procurement continues its evolution from tactical function to strategic powerhouse, one technology is accelerating the shift faster than anything else: Artificial Intelligence (AI) - especially its newer cousin, Generative AI (GenAI).
Once considered a futuristic concept, AI is now driving real-world impact across procurement and supply chain functions. From automating low-value tasks to enhancing decision-making at the strategic level, the momentum is clear: AI isn’t optional, it’s foundational.
AI in Procurement: What’s really happening right now
In 2025, we’re seeing leading procurement functions move beyond spreadsheets and ERPs to more intelligent, agile, and predictive operating models.
Here’s how:
- Strategic Sourcing: GenAI is powering smarter supplier discovery, scenario planning, and automated RFP creation. Teams are shaving days off sourcing cycles and focusing more on negotiation and value creation.
- Contract Lifecycle Management: AI tools can now review, summarise, and compare contract clauses at scale - highlighting risk, duplications, and compliance gaps in seconds.
- Supplier Relationship Management (SRM): AI enables dynamic risk assessments and performance tracking using both structured and unstructured data (think audit reports, news mentions, emails, etc.).
- Demand Forecasting & Inventory Planning: Procurement teams are using predictive AI models to improve planning accuracy, reduce excess inventory, and respond faster to supply-side disruption.
Why Procurement leaders are embracing GenAI
Unlike traditional AI that focuses on automation and prediction, Generative AI (like ChatGPT) introduces a layer of creativity, flexibility, and contextual reasoning that procurement has never had before.
Imagine:
- A tool that drafts tailored negotiation strategies based on previous deals.
- Contract summaries created instantly in plain language for legal and commercial review.
- A digital assistant that answers: “What’s the cost impact if we switch from Supplier A to B in Q4?”
GenAI is becoming a force multiplier, giving teams more bandwidth to think strategically while staying responsive in complex markets.
The impact on talent: New skills, new roles, new mindsets
As the tech landscape shifts, so too does the profile of the ideal procurement professional.
Hiring managers are now seeking:
- AI-literate professionals who can work confidently with digital sourcing tools.
- Data storytellers who can turn dashboards into boardroom-ready narratives.
- Tech-savvy leaders who can embed automation into traditional workflows.
- Change champions who know how to bring stakeholders along on the transformation journey.
At Procurement People, we’re seeing a sharp rise in demand for professionals with experience in tools like Keelvar, LevaData, Scout RFP, Fairmarkit, and Ivalua - plus those with exposure to ChatGPT-like tools in a business context.
3 steps to get started with AI in Your Procurement function
Whether you’re just starting or looking to scale AI adoption, here’s how to build momentum:
- Identify the low-hanging fruit
Start with repetitive tasks, RFP generation, supplier onboarding, spend categorisation. These are ripe for automation with minimal risk.
- Upskill your team
Offer training on GenAI tools and digital procurement platforms. Curiosity, adaptability, and a basic grasp of AI principles go a long way.
- Recruit with intention
Look beyond traditional procurement experience. Seek candidates with exposure to digital transformation, data analytics, and change management.
Final thought: From reactive to proactive
The future of procurement isn’t about cost-cutting, it’s about value creation through intelligence, agility, and innovation.
AI and GenAI are the enablers.
You and your team are the catalysts.
Looking to build a future-ready Procurement team?
At Procurement People, we connect businesses with procurement professionals who blend commercial acumen with digital fluency. Whether you’re scaling AI adoption or starting your transformation journey, we can help you find the right talent to lead the charge.
Get in touch with our Associate Director Will Terry at will.terry@procurement-people.com or call on UK: 0121 450 5000 US: +1 (512) 410 52311
