187% Predicted Growth in AI Adoption by 2025
Are you being left behind in Procurement?
Hey Procurement Legend,
Ignoring AI in procurement today is like driving blindfolded—eventually, you'll crash unless you use something like Tesla’s FSD capability
This doesn’t have to be “Procurement tech”.
There are a plethora of incredible capabilities out there. Just having a Chat GPT team subscription, where you have full control over data security, training data, etc., can make a significant difference to your productivity.
I’m currently tinkering with IPaas, traditional tools, Gen AI, and AI Agents. It is incredibly exciting. My goal is to make my productivity the level of 10 humans with pure no-code inputs.
Anyway….
Procurement teams often make the mistake of relying too heavily on outdated tools and processes. They think the status quo is "good enough," and it leads to inefficiencies, missed opportunities, and costly disruptions.
This reluctance to adopt advanced technologies like newer tech and AI is holding organisations back. Imagine a vendor-related crisis where swift decision-making is critical.
Without AI-powered insights, the fallout could mean lost revenue, strained relationships, and irreparable damage to your bottom line.
To avoid these pitfalls, start exploring AI-driven tools that enhance your procurement processes before you’re left behind.
59% of Procurement Teams Plan to Adopt Advanced Technologies by 2024
This statistic from Keelvar’s latest report is a wake-up call for every procurement leader. If over half of your peers are betting on AI, it’s not just a trend—it’s a competitive necessity.
AI adoption matters because today's tools can streamline sourcing, mitigate risks, and unlock cost efficiencies like never before. Your competitors aren’t just adopting AI; they’re using it to gain insights, make real-time decisions, and future-proof their operations.
Leverage this shift by identifying key areas in your procurement process where AI could provide immediate wins, like supplier communication or risk management. The faster you act, the better positioned you’ll be.
187% Predicted Growth in AI Adoption by 2025
AI adoption in procurement is forecast to grow by an astounding 187% in just two years. That’s not a gradual trend—it’s a seismic shift.
This growth signals that organisations no longer view AI as experimental or optional. It’s becoming essential to remain competitive. Companies leveraging AI tools like autonomous sourcing agents are streamlining order placements, supplier communications, and risk mitigation—saving time and money while improving resilience.
If your procurement processes don’t yet include AI, it’s time to rethink your approach. Start small by piloting AI-driven tools that automate repetitive tasks or provide real-time insights into supplier performance. This will improve efficiency and position your team as a strategic asset to the organisation.
“Procurement will look very different,” declared Remko van Hoek, professor of supply chain management at the University of Arkansas, at the Digital Procurement World (DPW) conference this month.
“It requires an across-the-spectrum rethink.”
DPW’s 10X Procurement study, based on input from over 200 international procurement leaders, indicates that respondents are planning “a transformative leap forward in digitisation of strategic sourcing and supplier relationship management” that aims to move “beyond the traditional focus of peer-to-peer automation”, said Prof van Hoek.
The study predicts adoption of AI is set to grow 187% in 2025, up from about 20% this year.
At the same event, Kris Timmermans, lead of Accenture’s supply chain & operations, stressed the need for advanced AI capabilities in procurement and supply chain management. He said: “The growth strategy of most companies is increasing the complexity of supply chains,” which, he added, was impossible to mange efficiently without AI support.
“It’s humanly impossible to optimise this,” he said. “We need continuous supply chain planning and execution.”
How To Lead the AI Revolution in Procurement
To remain indispensable in your procurement career, you need to be at the forefront of AI adoption. Here’s how:
Focus on Automation: Start by integrating tools that automate repetitive tasks like supplier communication and data entry. This frees up time for strategic decisions.
Upskill Continuously: Enroll in AI-focused training programs or certifications. Understanding the tech will make you invaluable to your team.
Implement Proactively: Advocate for AI-driven solutions within your organisation. Demonstrate ROI by piloting a small project that showcases tangible benefits. Crawl, Walk, Run might just be your best friend here.
Take these steps now to ensure your career thrives in an AI-driven world. Don’t wait for the disruption to catch you off guard—shape it yourself.
ICYMI
I gave my community members an incredibly detailed RFI prompt over the weekend.
Check out this article.
Some will say it’s hyperbole. But from where I sit, in the very heart of a global technology company that sits within a incredible portfolio of SaaS companies…the future of work will never look the same again.
New Video
This is one for you if you’re seriously trying to figure out how to get on top of your supplier/vendor contract management process.
I’ll see you at the weekend.
Daniel