Generative AI in Procurement: Why Early Movers Will Win

Generative AI is no longer just a concept of the future; it is actively reshaping how businesses operate. From marketing to software development, departments across the enterprise are rapidly integrating GenAI tools to streamline work and unlock new forms of value. When it comes to GenAI in procurement, many teams have barely scratched the surface.

While 71% of organizations now use generative AI in at least one business function, only 1% of leaders say they feel “mature” in their AI deployment, according to a 2025 State of AI McKinsey report. Procurement leaders have the opportunity to create the strategic future they want with GenAI, rather than play catch-up as it eventually becomes required.

As GenAI becomes mainstream across the organization, procurement teams can begin to harness new tools to increase efficiency and strategic value. Leadership is increasingly expecting AI projects to deliver both tangible value and cost savings. This dual mandate has become the baseline threshold for AI initiatives, particularly those that go through procurement channels where measurable ROI is critical for approval and ongoing investment.  

According to a 2025 report by Boston Consulting Group, procurement functions can reduce their overall costs by 15%-45% by using AI. They can also eliminate up to 30% of existing work for stakeholders with AI, freeing up capacity for more strategic work. Those who have only used Generative AI for personal use, such as creating videos or asking basic questions might be surprised to find that Generative AI can enable procurement teams to draft RFx documents with a simple prompt, summarize all supplier responses in seconds, automatically route stakeholders to the correct workflows, and greatly accelerate approvals and risk detection. These metrics demonstrate exactly the kind of measurable value and savings that executive leadership expects from AI investments moving through procurement approval processes.

This is not to say that GenAI is magic, although it can seem that way at times. The user still needs to have a vision and understanding for what they want to buy, figure out what makes one supplier response more valuable than another, and define the governance and guardrails associated with responsible procurement. However, the value of Generative AI in procurement is foundationally based on the ability to define procurement policies in plain language and then allow a GenAI-empowered system to assign the most optimal workflows, purchasing channels, and parameters to bring suppliers onboard and rapidly procure business-enhancing goods and services. 

Generative AI in procurement is not just about doing more, faster. It is about unlocking capacity for higher-value work, such as supplier innovation, stakeholder alignment, and risk strategy. With personalized outputs based on roles, generative tools can feel more like team members than tools.

Procurement professionals regularly manage complex, detail-heavy processes that include reviewing contracts, routing intake requests, coordinating stakeholders, and updating tracking systems. These tasks are essential, but they can slow momentum and distract from higher-priority objectives such as supplier strategy, risk mitigation, and value creation.

Generative AI is beginning to change that. According to a 2025 Harvard Business Review article, GenAI can reduce decision-making time from days to minutes, significantly improving operational responsiveness. 

By introducing GenAI into these daily workflows, procurement teams spend less time managing requests and more time building strategic partnerships, evaluating supplier innovation, and supporting business objectives. These capabilities lay the foundation for long-term transformation that aligns with how modern enterprises work and scale.

By embedding LLMs into procurement platforms, organizations can generate custom workflows via natural language, automate intake triage and approvals, suggest suppliers based on scope, and draft contracts, redlines, and summaries. The result is a procurement function that is faster, more accurate, and more aligned with strategic goals, without adding headcount.

The technology is ready, and the use cases are delivering measurable outcomes. To move forward with confidence, leaders can begin by identifying the most promising entry points for Generative AI in procurement at their organization.

Here is how to take the first step:

1. Identify highest-friction workflows: Start with intake, sourcing requests, or contract review
2. Partner with internal AI advocates: Leverage existing technology goals to scale GenAI into procurement
3. Track real outcomes: Measure impact in terms of request cycle time, supplier onboarding speed, overall supplier consolidation, or stakeholder satisfaction
4. Experiment, iterate, and scale: Successful adopters treat GenAI as a long-term capability, not a one-off pilot

Levelpath was founded on the idea that procurement should be downright delightful. Our platform is AI-native, built with intelligence from the ground up to deliver that experience.

With Levelpath, procurement teams can use natural language to interact with AI Agents and create sourcing projects, supplier reviews, and more. Our proprietary reasoning engine, Hyperbridge, along with Optical Character Recognition (OCR) and intelligent search capabilities allows you to summarize contracts and surface key risks instantly, automate stakeholder updates with AI-generated summaries, and route tasks to the most effective LLM for the job.

Unlike platforms that bolt on AI as an afterthought, Levelpath is purpose-built for efficiency, configuration, and enterprise scalability. This means our users do not just use AI; they collaborate with it.

We are proud to have been recognized as a Sample Vendor for Generative AI in the 2025 Gartner® Hype Cycle for Procurement and Sourcing Solutions, something we believe is a testament to our leadership and innovation in AI-powered procurement. Download the complimentary report today to discover the capabilities, benefits, and strategic recommendations from Gartner for over 25 transformative procurement innovations.

Generative AI in procurement represents a transformational shift with far-reaching implications for efficiency, scalability, and strategic influence. While most organizations are still waiting on the sidelines, a small group of early movers is already realizing major gains in productivity, efficiency, and strategic value. If you are ready to unlock the full potential of your procurement team, the time is now.

Want to see how GenAI can accelerate your procurement workflow? Request a demo or join one of our monthly sessions to see how we can help make procurement a delight.

— Rose