What to Know About AI in Procurement
This report from The Hackett Group helps procurement, IT, and business stakeholders make sense of a rapidly changing environment when it comes to AI in procurement. Discover four key areas to watch - and their market implications - as well as recommendations on smart next steps your organization should take.
Learn how to set up your procurement function to unlock the value of advances in AI.
Get your copy of this report to:
- understand the trends and developments that are shaping how AI is used in procurement
- learn which next steps will matter most when planning how you’ll use AI
- prepare for meaningful discussions when managers ask about your plans to use AI
The Hackett Group is seeing a strong focus on artificial intelligence (AI) in the marketplace. Compelling procurement use cases for AI are emerging so procurement leaders should keep an eye on developments in this space to ensure that they have an AI strategy in place that allows them to liberate the full value potential of procurement.
Author
Amy Hillcox
Senior Research Director, Procurement and Purchase-to-Pay Advisory
FAQ
At a glance, what are the things to know about AI in procurement?
1. The ability to distinguish what AI is, and isn’t. Why this matters: Leaders need to be able to separate hype from genuinely transformative technology.
2. The ability to make informed, deliberate bets. Why this matters: Leaders need to weigh several factors that go into optimizing third-party spend, and these will be different for every organization.
3. The decision to build or buy. Why this matters: Leaders should explore whether an off-the-shelf solution or one developed in-house will best meet their requirements.
4. The act of laying the groundwork to fully seize opportunity. Why this matters: Leaders need to set up any new technology to win with proper change management and implementation, such as cleaning master data, managing integrations, helping employees through the change, onboarding and enabling suppliers, and updating processes.
2. The ability to make informed, deliberate bets. Why this matters: Leaders need to weigh several factors that go into optimizing third-party spend, and these will be different for every organization.
3. The decision to build or buy. Why this matters: Leaders should explore whether an off-the-shelf solution or one developed in-house will best meet their requirements.
4. The act of laying the groundwork to fully seize opportunity. Why this matters: Leaders need to set up any new technology to win with proper change management and implementation, such as cleaning master data, managing integrations, helping employees through the change, onboarding and enabling suppliers, and updating processes.
AI is not new; however it is being incorporated into more procurement technologies and delivering compelling use cases. The Hackett Group expects to see AI being used to enable more procurement functionality over time, which provides procurement teams with a unique opportunity to determine if they will lead the charge or hold back to see what happens. As the technology continues to evolve, procurement teams should monitor development, assess value potential for their operating environment and implement use cases that will clearly deliver value.
