🌊 AI's Rising Tide
The Numbers Don't Lie
Hello Procurement Legends,
What a wild week.
I’ve played around with Claude 3.7, put Chat GPT 4.5 through its paces, made a bunch of stuff on SORA, and worked on a bunch of stuff regarding AI that I cannot reveal just yet.
In short, I’ve never been more pumped to work in procurement tech and within the procurement community.
The procurement landscape is evolving at breakneck speed, with artificial intelligence leading the charge.
My latest review of over 50 different sources reveals some striking statistics.
If you get any value from this, please make sure you consider becoming a paid community member, where you’ll get access to our deep dives each week (I accidentally sent this week’s one to everyone 🤣)
PS. I’m also back to using Notion and currently building a library of useful AI “stuff” for you.
Back to the stats.
AI Speed: AI handles procurement tasks up to 80% faster than traditional methods 🤯
Executive Interest: 92% of chief procurement officers have evaluated generative AI for operations 🥳
Investment Trends: 11% of organisations currently allocate over £1 million to AI-driven procurement tools, which will double to 22% in 2025 💰
Data Priorities: 38% of procurement executives prioritise enhanced data analytics and spending visibility
IoT Adoption: 28% are investing in IoT technologies for real-time tracking
Sustainability Commitment: 99% of organisations now have explicit ESG goals guiding procurement
Leadership Models: 60% report implementing collaborative leadership models where CPOs partner with CIOs and CTOs
Other Observations 👀
1. AI as the New Procurement Engine - We're now moving away from old procurement methods💀 to AI systems that can do things like manage contracts through conversation and automatically approve invoices — I'm working on some incredible things here myself ✌️
2. Data-Driven Decision Making—The largest percentage of procurement executives identified enhanced data analytics and spending visibility as their top initiative. Organisations are leveraging predictive capabilities not just to understand past spending but also to anticipate demand trends and optimise inventory management.
3. Building Resilience Through Technology - In response to recent supply chain disruptions, cutting-edge technologies like "digital twins" enable sophisticated scenario planning. Solutions addressing geopolitical tensions and "China-plus-one" diversification strategies are becoming essential components of the procurement tech stack.
4. Sustainability as Non-Negotiable - An astounding 99% of organisations now have explicit ESG goals guiding procurement activities. More than a quarter of procurement leaders identified sustainability-oriented technologies as a key priority, recognising that environmental responsibility and cost efficiency can be complementary rather than competing objectives. — This one surprised me, especially with the combined forces of Trump and Musk diminishing the value of ESG/DEI, etc. I’m also somewhat sceptical of this one but you tell me…
5. Collaborative Leadership Models - The days of siloed procurement decisions are over. A significant 60% of organisations report implementing collaborative leadership models where CPOs partner with CIOs and CTOs, reflecting the increasingly technical nature of procurement solutions.
Stay innovative, lead the Way, and build the Blueprint.
Daniel