The end-to-end procurement value chain has experienced widespread adoption and significant positive impact of artificial intelligence (AI), moving beyond initial implementations focused on efficiency to direction-setting strategic assets, delivering tangible value and being at the forefront of seismic shifts, according to ProcureAbility’s AI Adoption and Its Impact on Procurement report.
“AI is no longer optional in procurement, it's a critical driver of competitiveness,” says Darshan Deshmukh, president of ProcureAbility. “Organizations that move beyond tactical use cases to embed AI strategically will unlock transformative benefits in cost management, supplier relationships, and operational performance.”
Key takeaways:
● 92% of respondents expressed satisfaction with their current AI solutions in procurement.
● Supplier discovery and selection leads with 77% adoption, followed by spend analysis and categorization at 76%.
● The most common benefits include cost savings and spend reduction (55%) and sustainability improvements (54%), followed by better supplier selection and management (47%), and process efficiency/time savings (44%).
● 88% of organizations plan to increase their AI investments in procurement over the next 12 months.
● While implementation is widespread, 59% of organizations currently use AI to support specific initiatives rather than a full, strategic transformation.
● The main roadblocks to implementation and user adoption are the "lack of proven examples" (35%), followed by "resistance to change" (29%).
● Despite strong adoption, confidence in evaluating AI's ROI remains an area for improvement, with 90% feeling "somewhat confident" and 5% "not very confident."
● While enthusiasm for AI is high, the report identifies several structural and cultural barriers to full adoption: 35% cite a lack of proven examples, 29% face resistance to change, and 23% struggle with unrealistic performance expectations.
“The most successful organizations are pairing technology deployment with cultural change,” says Satyen Pathak, managing director–India, ProcureAbility. “Building an AI-first mindset within procurement teams is now as important as selecting the right toolsets. Identify a handful of use cases to test the hypothesis, create value, and drive adoption within the organization. It’s all about 'how' AI integrates within your organization and not 'if'."
