AGS Blog The Future of AI in Procurement: From Cost Control to Value Creation

In today's rapidly evolving business landscape, the future of procurement is shifting from traditional cost control measures to a focus on value creation. This transformation is largely driven by the integration of artificial intelligence (AI) into procurement processes, which automates tedious tasks and allows procurement teams to concentrate on strategic decision-making and collaboration. AI in procurement has the potential to significantly reduce costs, with estimates showing a reduction of 15% to 45%, according to data from the Boston Consulting Group. This can be achieved through data-driven insights that optimise supplier negotiations and procurement strategies. The adoption of AI may also result in leaner procurement teams, enhancing cost savings and allowing teams to focus on strategic tasks, as noted in BCG's report.