The Hackett Group, Inc. announced AI World Class Procurement benchmarks, new research that quantifies how artificial intelligence (AI) is reshaping procurement performance.
These new benchmarks build on The Hackett Group's AI World Class research, which identified performance advantages of up to 75% for organizations pursuing process-led AI transformation.
"Most organizations are still trying to justify AI investments one use case at a time," says Tim Yoo, principal and procurement transformation practice leader at The Hackett Group. "Our research shows the greatest returns come when organizations redesign procurement processes with AI as a key enabler, allowing better decisions to build value throughout the end-to-end process."
Key takeaways:
· The new procurement benchmarks show how those advantages emerge across critical procurement processes and where organizations can create measurable improvements in procurement return on investment (ROI), savings generation, supplier performance, and business value.
· The research indicates that the next phase of AI adoption will be defined less by technology deployment and more by the business value procurement creates.
· The new benchmarks span critical procurement processes, including sourcing, supplier management, purchasing, purchase-to-pay and supplier performance.
· AI World Class organizations generate up to 3.7 times greater procurement ROI and 3 times greater savings impact.
· AI World Class modeling also shows purchase-to-pay process costs can decline by up to 80%, while staffing requirements can decrease by up to 81%, creating capacity for supplier strategy, sourcing optimization and higher-value commercial decision-making.
· Competitive bidding increases by 97% alongside 42% greater supplier concentration, improving sourcing outcomes before a purchase order is ever created. Guided buying and catalog adoption improved by 110%, reducing maverick spend leakage by 69%. As purchasing quality improves, invoice errors decline by 76%, invoice processing accelerates by 74% and transaction execution becomes increasingly autonomous.
