Weekly Market Intelligence Brief: AI in Procurement

Your Guide to AI Developments in Procurement

Hey Procurement Legends,

This week's AI developments in procurement are exciting. It's clear we're reaching a pivotal moment where AI is no longer an experimental technology, but a must-have strategic capability. This was the prevailing sentiment at DPW. That said, the reality on the ground reveals a significant gap between enthusiasm and actual adoption.

AI in Procurement Stories

🧠 Agentic AI Goes Mainstream

Agentic AI. Think of this as AI with genuine decision-making power, which is now actively transforming procurement processes.

Tom Mills

shared this wonderful post on Linkedin Yesterday - go check it out, follow him, and subscribe to his newsletter too!

A standout example is ZKH Group's MROProcure Agent, which independently manages procurement workflows, boosting supplier participation by a staggering 82% and processing millions of material entries with high accuracy.

ZKH Group is a leading digital provider of MRO (Maintenance, Repair, and Operations) procurement and management services. I’ll have a case study live on Friday all about what they’re doing for paid members.

💸 AI Investment Skyrockets, Despite Economy

Despite persistent economic uncertainty and budget pressures across industries, procurement teams are dramatically doubling down on AI investments heading into 2025. The numbers tell a compelling story: organisations planning to invest over $1 million in GenAI capabilities have more than doubled from 11% in 2024 to 22% in 20251, demonstrating unwavering confidence in AI's strategic necessity regardless of economic conditions.

Organisations investing in AI aren't betting blindly. Boston Consulting Group research indicates that companies with GenAI investments are penciling in ROI three times higher over the next three years compared with companies making little to no GenAI investment. This substantial ROI differential explains the willingness to maintain and increase AI spending despite budget pressures elsewhere.

Reality Check: The Implementation Gap

🚧 61% Still Stuck at the Start Line

Here's the truth: while nearly all procurement leaders believe in AI's benefits, over half haven't actually implemented any AI systems yet. This significant lag presents both a hurdle and a golden opportunity for those ready to dive in.

Again, this was the overwhelming commentary from people I spoke with at DPW in New York last month. With 70% tinkering versus the 30% truly building.

There’s a lot of work to do but the good point to note is that we’re moving in the right direction when it comes to deploying AI as a focal point of what we do.

📚 The AI Skills Crunch is Real

As AI tech evolves rapidly, the demand for skilled procurement professionals is surging faster than the talent supply. Nearly half of procurement leaders believe AI will create new roles, sparking major investments in training teams on prompt engineering, data analytics, and strategic AI use.

You all have an incredible opportunity to be on the bleeding edge of this new world. Do not miss this opportunity.

Until next week,

Daniel

*Insights synthesised from over 60 leading procurement and AI sources, July 2025.