The procurement function is increasingly turning to Artificial Intelligence (AI) and Generative AI (GenAI) to improve efficiency, drive cost savings, and enhance decision-making. Yet, many teams struggle to move beyond surface-level experiments to fully integrate AI into their operations. This blog outlines a practical framework: crawl, walk, run, for adopting AI in procurement while fostering a culture of curiosity and experimentation among procurement professionals. By empowering teams to embrace AI confidently, organizations can unlock the transformative potential of delightful procurement.

The State of AI in Procurement

According to PwC’s Global CEO Survey 2024, 70% of CEOs believe that GenAI will fundamentally change how their organizations create, deliver, and capture value. Despite this optimism, 90% of organizations remain in the early stages of AI maturity, focusing on initial capability development. For procurement teams, this means starting small, identifying clear use cases, and gradually scaling efforts.

Procurement is well-positioned to benefit from AI, as it often deals with large volumes of both structured data (e.g., supplier files, contract histories) and unstructured data (e.g., emails, invoice notes). AI platforms like Levelpath can extract key insights from these data sources, enabling procurement professionals to make faster, more informed decisions.

Crawl: Building a Foundation for AI Exploration

Before diving into full-scale AI processes, procurement teams should first foster a culture of curiosity and exploration. The “crawl” phase emphasizes small-scale experiments designed to build employee confidence and demystify AI for procurement.

Set Clear Learning Objectives: Introduce team members to the possibilities of AI with manageable, targeted assignments. For instance, create a simple Request for Information (RFI) using AI-generated prompts. Encourage collaboration to define objectives and build AI prompts collectively, fostering a sense of ownership and teamwork.
Democratize Learning: Share insights across the team by creating a centralized repository of AI use cases and learnings. This can help build a shared knowledge base and inspire further experimentation.
Provide Access to Tools: There are many different GenAI tools the team can practice

Walk: Scaling AI with Purpose

Once initial experiments have demonstrated value, procurement teams can move to the “walk” phase, focusing on purposeful scaling of AI initiatives.

Identify High-Impact Use Cases: Evaluate areas where AI can deliver immediate benefits. Common applications in procurement include:
- Contract analysis to identify cost-saving opportunities.
- Supplier performance evaluations based on historical data.
- RFP generation for complex sourcing projects.
Enhance Training and Confidence: Provide targeted training to help team members understand AI’s capabilities and limitations. Focus on building creative problem-solving skills to unlock AI’s full potential in addressing procurement challenges.
Integrate AI into Operations: Levelpaths user-friendly AI platform lowers the barrier to entry and integrates seamlessly with enterprise tools and enables employees to experiment with AI Copilots, and AI insights to optimize day-to-day operations.

Run: Driving Strategic Impact

In the “run” phase, AI becomes a core component of procurement strategy, enabling the enterprise to achieve long-term business goals.

Align AI with Business Objectives: Use Levelpaths AI platform to support broader organizational priorities, such as spend, risk management, and supplier diversity. Levelpath can help procurement teams identify and prioritize suppliers aligned with these goals.
Break Down Silos: Ensure cross-functional collaboration between procurement, finance, IT, and other departments. Levelpaths AI Platform provides a unified view of enterprise-wide spend, enabling more strategic decision-making.
Measure and Optimize: Continuously monitor and use insights to refine strategies and identify new opportunities for procurement to improve business performance.

Overcoming Challenges

While the potential benefits of AI in procurement are substantial, organizations must address several challenges to ensure success:

Data Quality: AI is only as effective as the data it analyzes. Procurement teams must invest in cleaning and organizing their data to maximize AI’s impact.
Change Management: Employees may be hesitant to adopt AI due to fears of how to best use tools due to perceived lack of technical skills. Clear communication and training are essential to overcoming these barriers for procurement teams success.
Balancing Human and AI Input: AI should complement, not replace human judgment. Encourage teams to view AI as a partner in decision-making.

The Role of Leadership in Fostering AI Adoption

Leadership plays a critical role in creating an environment where AI experimentation can thrive. By modeling curiosity and providing support, leaders can inspire their teams to embrace AI confidently. Encourage open dialogue about the opportunities and challenges of AI, and celebrate small wins to build momentum.

The Path to Delightful Procurement

Adopting AI in procurement is not a one-size-fits-all journey. Organizations must navigate tradeoffs, address challenges, and prioritize continuous learning to achieve meaningful results. By fostering a culture of curiosity and experimentation, procurement teams can harness the full potential of AI to deliver delightful procurement experiences that drive strategic value for the business.

By starting small and scaling purposefully, procurement teams can transform their operations with AI while empowering employees to innovate and thrive. With the right mindset, tools, and leadership, organizations can achieve lasting success in the age of AI.

Want to learn more about how Levelpath can empower your procurement operations? Check out Levelpath’s AI-powered platform to see how we help teams streamline workflows, optimize supplier management, and uncover actionable insights, all while fostering a culture of innovation and collaboration. Visit Levelpath’s resources to explore customer success stories, expert insights, monthly demos, and tools designed to elevate procurement into a delightful and strategic business driver.

– Michaela

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