Generative AI drives positive change in procurement, yet organizational hurdles persist

Redwood City, CA.  Ivalua, a global leader in spend management, today released its Future of Work in Procurement survey, a US-focused study revealing shifting expectations surrounding the future landscape for procurement professionals as they embrace generative AI and upskilling. 

According to the survey, procurement professionals have a positive outlook toward generative AI and its impact on the future of work. Seventy-five percent of respondents reported increased investment in generative AI, 67 % noted increased automation and 72 % observed improved data analysis and insights.

Forward-thinking organizations are upskilling talent and reshaping roles using generative AI, marking the evolution of procurement. As uncovered by Ivalua's report, 60 % of leaders believe generative AI will transform the job landscape by creating new roles and redefining existing ones. Additionally, 48 % of respondents view this change as an opportunity, while only 11 % see it as a threat, with the remaining 41 % taking a neutral stance. These responses demonstrate an optimistic or balanced outlook toward using generative AI in the future.

“With generative AI, procurement can redirect effort from transactional to strategic activities, accelerating its shift from a back-office position to a highly strategic powerhouse within organizations,” said Alex Saric, CMO of Ivalua and smart procurement expert. “Greater automation of manual tasks and improved insights are enabling procurement to better manage risks, advance sustainability initiatives and optimize among competing priorities. But to unlock the promise of generative AI, organizations must address organizational hurdles, gain control of supplier data and improve interdepartmental communication.” 
“AI is the next frontier for us in procurement. It’s crucial that we stay ahead of technological advancements to enhance our efficiency and enable our people to focus on being business leaders rather than getting bogged down by mundane tasks,” said Amanda Christian, senior vice president of contracts and subcontracts at CACI. "As we've scaled to a USD 7 billion company, leveraging advanced technology through partnerships like Ivalua has been instrumental in supporting our growth and helping automate time-consuming audit processes - transforming our procurement operations and redefining roles within our organization."

Additional key takeaways from the survey include:

• Investment in skills development: Organizations are proactively investing in the future of their workforce; 70 % are investing in upskilling programs and 68 % in reskilling initiatives, emphasizing the importance of advanced data analysis, emerging technologies and strong negotiation skills for future strategic value.
• Preparedness for the future of work in procurement: Respondents have a strong sense of readiness, as 71 % report their organizations are well-prepared to face the changes facing the future of work in procurement. Moreover, 60 % believe their departments provide clear career advancement paths.

While optimism about procurement's future is evident, the function still faces challenges in fully embracing its strategic role. Effective collaboration between procurement and other departments remains hindered by several factors. The most significant obstacles include:

• Different departmental priorities (57 %)
• Siloed information (44 %)
• Lack of clear communication channels (22 %)

External challenges continue to weigh heavily on procurement professionals' minds. Supply chain disruptions remain a primary concern, with over half (51 %) of respondents worried about potential trade policy shifts following the 2024 US election. Geopolitical tensions also feature prominently, as one-third (33 %) expressed concern about military tensions between China and Taiwan.

These findings underscore the importance of strengthening procurement capabilities and aligning them with broader organizational goals to enhance supply chain resilience. While procurement professionals feel optimistic about their function's future, the persistent unease about external disruptions highlights the need for organizational alignment and improved collaboration to ensure preparedness and adaptability.

About the Research

Rep Data conducted the survey on behalf of Ivalua between April 17 and May 15, 2024. The survey was based on responses from 200 supply chain and procurement executives and directors in the U.S.

Acerca de Ivalua

Ivalua is a leading provider of cloud-based, AI-powered Spend Management software. Our unified Source-to-Pay platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, improving sustainability, lowering risk and boosting employee productivity. We are trusted by hundreds of the world’s most admired brands and recognized as a leader by Gartner and other analysts. Learn more at www.ivalua.com. Follow us on LinkedIn and X.

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