AI in business: How does it boost your procurement performance?

Artificial intelligence (AI) is experiencing accelerated adoption in businesses, particularly with the rise of generative models like ChatGPT, Claude, Gemini, or DeepSeek. In the procurement domain, it positions itself as a strategic lever, optimising data analytics, supplier management, and decision-making. According to a Deloitte study, 92% of procurement directors planned to integrate generative AI in 2024, with 37% already incorporating it into their processes. This technology is transforming procurement practices, offering businesses new perspectives on cost optimisation, automation, and performance. From data processing to process improvement, discover the potential of artificial intelligence in business.

How does artificial intelligence work in business?

Behind AI lies a set of technologies that function "intelligently" and autonomously (Machine Learning, Deep Learning, etc.). Concretely, these AI tools can accomplish tasks requiring cognitive capabilities similar to human information processing. These computer machines can therefore reproduce certain behaviours like perception, reasoning, planning, learning, etc.

AI, combined with Big Data, absorbs a phenomenal amount of data to examine and extract patterns and correlations. Within the procurement function, this can handle data from various sources: Procurement platforms, online catalogues, Supplier Relationship Management (SRM) software, Enterprise Resource Planning (ERP) systems, etc. As Xavier Laurent, Mergers and Acquisitions Director at Manutan[1], explains, "data is essential for any type of procurement. We use it to highlight, for example, that one factory consumes in a particular way, while another, seemingly comparable, functions differently. We then establish benchmarks by bringing together all companies in the same sector to understand their operating methods and define a procurement standard. Thus, if your behaviour deviates, you know you can improve efficiency through digitalisation."

Composed of a set of algorithms, AI systems are able to process and exploit these data, consolidate them, automatically deduplicate, and index them in real time. Tools based on this technology thus allow buyers to continuously track and exploit this information at every stage of the procurement process. This concerns everything from supplier identification to contract setup, order entry and planning, to tracking receipt and invoicing…

The impact of artificial intelligence on businesses and the procurement function, in particular, appears decisive. Bill Gates, Microsoft co-founder, is convinced he has witnessed "the most important advance in technology since the graphical user interface".

Similarly, a recent American study, conducted jointly by researchers from OpenAI, Open Research, and the University of Pennsylvania, highlights that approximately 80% of workers should see at least 10% of their tasks exposed to the arrival of generative AIs. For 19% of them, even 50% of their missions would be affected. In procurement, CPOs[2] surveyed by Deloitte believe generative AI can primarily improve data analysis and decision-making, optimise costs, and increase productivity. Nearly 50% of companies that have adopted generative AI have seen their ROI double, and some have even recorded a return on investment multiplied by 5.

However, Deloitte emphasises that one of the major challenges in integrating generative AI into procurement remains data quality and availability, information confidentiality, and lack of specialised talent. 71% of CPOs believe they have limited to moderate knowledge of generative AI, and only 20% possess good or excellent mastery of the technology.

AI in business to boost procurement processes

Through data processing and analysis, businesses create value throughout the procurement process. Today, these technologies are in the phase of appropriation, with the development of initial use cases. According to Deloitte, 11% of companies already dedicate more than a million dollars annually to generative AI for procurement, a figure expected to reach 22% in 2025.

Procurement categories

Artificial intelligence can structure procurement by following a defined process, according to specific nomenclature and typology. For example, when an internal client raises a need, the tool can determine whether it is covered by a catalogue or supplier contract, whether a quote should be requested from an existing supplier, or if supplier sourcing is necessary.

Invoicing

Within the procurement department, the first field of AI application often focuses on the Procure-to-Pay process, particularly invoicing. This is because these are time-consuming processes that do not present added value. Today, some invoice management modules succeed in automatically processing nearly 50% of invoices. The tool extracts relevant information, matches it with the order, and generates payment without any human intervention.

The Manutan Example

"In our business, we combine AI with automation. AI can analyse incoming emails and deduce document management or processing rules. However, it remains necessary to connect it to ERPs and various other systems, and that’s where automation takes over. Ultimately, it is the combination of these two approaches that gives the treatment its full effectiveness," Évelyne Mercier, Financial Director at Manutan France[3]

Supplier sourcing

Upstream of tenders, AI can explore the market and pre-qualify suppliers. Some solutions are already capable of performing this exercise, going as far as identifying the highly specialised small business that perfectly matches the need. Another example: A bot can also analyse supplier responses during a Request For Information (RFI) and propose recommendations. In fact, 19% of companies already use generative AI to automate the generation of RFI, RFP, and RFQ documents.

Contracts

AI can also ensure contract compliance. This is precisely what a banking group tested when needing to analyse its reference contract base during the GDPR (General Data Protection Regulation) period. The company relied on AI solutions to identify all contracts containing personal data and ensure they contained the required clauses. The procurement team estimates they reduced processing time by 6 times!

Supplier relationships

AI can also take over multiple aspects of supplier relationships, particularly in risk and incident management. For example, the technology can signal cases of default or non-compliance with commitments by simply tracking contractual information. If a supplier does not respect agreed delivery times, AI can alert the relevant buyer and propose alternatives to avoid impacting production.

Performance management

Artificial intelligence can ultimately support buyers in procurement performance management. It helps track spending evolution, anticipate future costs, etc. Buyers then become proactive rather than reactive.

AI accelerates decision-making by providing relevant analyses from real-time data. Buyers can then make informed decisions more quickly. They can also anticipate risks with predictive analytics and adopt necessary measures to preserve the company’s activities.

AI promises multiple opportunities for procurement departments: More information, productivity, savings, security… Through digital transformation and exploitation of new technologies (of which AI is a part), buyers will ultimately be able to focus on higher value-added tasks such as developing supplier relationships or contributing to CSR (Corporate Social Responsibility). A source of competitiveness, innovation, and value creation, the challenges of AI for business are major.

According to Deloitte, generative AI can revolutionise the procurement function by making it more agile, more efficient, and focused on anticipation, rather than simply executing transactional tasks.