What You Need to Know: AI sourcing is becoming a top priority for procurement leaders as AI and GenAI introduce new pricing models, shifting terms, and rising demand for structured evaluations. Gartner® highlights that AI is now the primary driver of software and cloud cost increases, which makes clear approvals, transparent terms, and early consumption insight essential for responsible adoption. Procurement teams that understand these dynamics can guide stakeholders toward the right AI investments, and Levelpath helps support this work by bringing structure and visibility to every AI sourcing decision.

AI and GenAI are reshaping enterprise technology, and procurement leaders are seeing the effects across every category of spend. Software vendors are weaving AI features into renewals, cloud providers are introducing new consumption models, and business units are discovering readily available AI tools with little visibility into long term risks. This pace of change creates an environment where procurement plays a central role in guiding how organizations evaluate, adopt, and govern AI investments.

The new Gartner ® report Predicts 2026: AI Sourcing Excellence for Cost Control and Enhanced Value highlights just how quickly this shift is accelerating. Gartner notes that AI is now the main reason software and cloud vendors are increasing prices, even when organizations may not need the embedded capabilities. This trend signals a broader transformation in how technology value is defined, measured, and purchased. Procurement leaders who understand these dynamics will be better positioned to support executive needs and ensure responsible AI adoption.

The efficiency potential with AI remains huge. Teams want faster workflows, deeper insights, and the ability to make more informed decisions. AI sourcing creates the possibility of meaningful transformation, but it requires clear governance and a thoughtful approach to ensure that the right capabilities are purchased at the right time. This environment positions procurement not as just a gatekeeper, but as a strategic advisor who helps shape AI strategy for the enterprise.

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AI Growth Is Outpacing Sourcing Discipline

AI growth is currently outpacing sourcing discipline because teams often feel pressure to adopt new tools quickly. Many organizations pursue AI capabilities before evaluating pricing structures, consumption models, or long-term implications. Gartner notes that enthusiasm can outpace formal assessments, and internal stakeholders may not recognize how rapidly AI licensing terms and usage metrics can change. These conditions create risks that become more visible as spending increases.

The complexity of AI pricing models is a major challenge. Token-based charges, hybrid consumption rules, and tiered metrics introduce variables that traditional sourcing teams may not be equipped to evaluate. Gartner reports that key details such as rate cards, metering rules, and usage limits are often buried in supplemental terms, which makes it difficult to compare proposals or forecast costs. This lack of clarity can lead to unplanned spend and reduced negotiating leverage.

Gartner predicts that “through 2029, 60% of AI-engaged organizations will incur unforeseen cost overruns due to opaque and complex vendor pricing, compelling strict consumption guardrails.”

These overruns strain budgets and undermine confidence in AI investments. Procurement leaders can mitigate these issues when they recognize the scale of the shifts underway and begin introducing greater structure into decision-making on AI purchases. Teams that adapt early will build stronger processes, clearer expectations, and more sustainable governance.

Recommendations for More Effective AI Sourcing

Gartner recommends that procurement leaders build tiered approval frameworks that ensure every AI purchase has a clear rationale. This structure prevents ad hoc adoption and encourages teams to define expected outcomes before engaging with vendors. Tiered approvals help business leaders quantify value, risk, and cost, which makes AI sourcing more aligned with strategic goals.

“By 2029, organizations failing to implement tiered approvals and savvy AI contracting will double their AI costs and erode ROI,” emphasizes Gartner on why adopting these recommendations is critical.

Another important factor is contract stability. Vendor pricing models are changing at a rapid pace, and sourcing teams need multi-year clarity to prevent unpredictable increases at renewal. The report advises teams to request stable terms, clear rate protections, and transparency around primary and secondary pricing metrics. These measures strengthen financial planning and reduce the likelihood of hidden costs surfacing later in the lifecycle.

Gartner encourages sourcing teams to evaluate AI consumption early, rather than after costs have already accumulated. Consumption insight becomes especially valuable as organizations introduce agent-based models, conversational AI, and task-specific tools. Procurement teams can support better planning by assessing usage scenarios and by building budgets that anticipate multiple price paths.

From our understanding, the Gartner Predicts 2026 report points out several areas where effective AI sourcing becomes easier when teams follow consistent analysis patterns, such as:

  • Defined consumption metrics: including cost per conversation, cost per agent, or cost per outcome.
  • Transparent usage rules: clarifying when an action shifts from unmetered to metered.
  • Clear comparison points: providing visibility across bundles, individual services, PAYG models, and SaaS offerings.

These practices create a clearer picture of how AI investments evolve and allow procurement to make more confident, data-driven decisions. For procurement leaders, this means that AI sourcing requires a clear structure, measurable outcomes, and a consistent process that supports confident, responsible adoption.

Why Levelpath Is the Best Platform for AI Sourcing

Levelpath is the best procurement platform for AI sourcing because we believe it helps teams operationalize the exact structures that Gartner recommends. Levelpath intake workflows require business units to define requirements and expected outcomes before sourcing begins, which brings discipline to early-stage decision-making. This structure ensures that teams evaluate AI solutions intentionally, and it gives executive leadership visibility into why investments are being considered.

Levelpath strengthens transparency by bringing legal, IT, security, finance, and procurement into one centralized workflow. Every stakeholder reviews AI proposals with the same information, which supports stronger pricing analysis, clearer risk assessments, and more consistent contract evaluations. Levelpath becomes a predictable system of record where teams can trace sourcing decisions, terms, and business justifications from intake through renewal.

Levelpath’s Contract Discovery Agent gives stakeholders immediate access to contract information by allowing them to ask natural language questions. This capability surfaces pricing model changes, evolving AI terms, renewal conditions, and clauses that may introduce future cost risk. It allows procurement to stay ahead of vendor shifts and ensures that teams have accurate, current information during evaluations and negotiations.

Levelpath delivers long-term governance by connecting intake data, contract terms, renewal schedules, and vendor performance throughout the lifecycle. This structure helps organizations understand how AI usage aligns with expectations and provides insight into where spend is increasing, why it is increasing, and what actions may be necessary. Procurement leaders gain predictable, value-focused AI sourcing practices that align directly with Gartner recommendations for stronger control, sustainable value, and better enterprise alignment.

As an AI-native intake-to-procure platform, Levelpath has the foundation to enable efficiency, collaboration, and data-driven decision-making. Rather than having AI bolted on to certain features, the platform was built with AI embedded into every aspect of the procurement lifecycle. As AI continues to grow at a hyper rate, Levelpath is the procurement platform that is built to scale with procurement teams in 2026 and beyond.

Get more insights and learn more about why AI sourcing planning and governance will be vital for procurement teams next year. Download the Gartner Predicts 2026: AI Sourcing Excellence for Cost Control and Enhanced Value report now.

–Rose

Gartner, Predicts 2026: Al Sourcing Excellence for Cost Control and Enhanced Value, Yoann Bianic, Zach Nagle, Mike Tucciarone, Stephen White, 1 December 2025

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