**London**: The rise of agentic AI is set to transform procurement by automating tasks, enabling real-time decision-making, and optimising supply chain efficiency. Experts predict that integrating AI agents could significantly enhance organisational agility and provide a competitive edge in today’s complex business environment.
The dynamic landscape of artificial intelligence (AI) continues to evolve, particularly with the emergence of agentic AI, which is poised to revolutionise the enterprise workforce. Unlike generative AI, which relies on human input for tasks like text generation and insight provision, AI agents operate autonomously, facilitating collaboration and decision-making without direct human intervention.
Organisations pursuing enhanced agility and efficiency are increasingly turning to AI agents to streamline their procurement and supply chain functions, presenting significant opportunities for growth amid prevailing economic challenges. Grant Gross, writing for CIO.com, characterises agentic AI as a tailored operational tool that automates specific functions within an organisation’s diverse business processes.
Procurement teams often face an overwhelming volume of data, leading to sluggish decision-making and potential missed opportunities. Traditional manual processes hinder their ability to monitor supplier risks and compliance issues in real-time. AI agents offer a solution by rapidly analysing extensive datasets, continuously tracking supplier performance, and automating repetitive tasks. According to The Hackett Group, these capabilities can reduce procurement cycle times by as much as 30%. Furthermore, these AI agents can ensure adherence to procurement policies, thereby helping businesses control costs effectively.
“The AI agents are set to revolutionise procurement by addressing existing challenges, enhancing efficiency, and paving the way for a more strategic and proactive procurement function,” states Santosh Nair, chief product officer at GEP. He highlights that organisations adopting this technology may gain a competitive advantage in today’s evolving business environment. Gartner anticipates that by 2028, 33% of enterprise software applications will incorporate agentic AI, marking a significant increase from less than 1% projected for 2024.
Brian Hopkins, vice president of the Forrester emerging technology portfolio, underscores the advancements in AI agents. He notes: “AI agents are now leveraging advanced language models to perform complex tasks, make decisions, and interact autonomously on behalf of enterprises or individuals,” adding that the transition from generative AI to agentic AI signals a new era of sophisticated and robust automation capabilities.
The implications of agentic AI in procurement are profound. By integrating such technology, procurement teams can expect significant enhancements to their operational efficiency and decision-making speed. Nair elaborates on the innovative functionalities of agentic AI, which include:
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Managing Supply Chain Volume and Complexity: By processing large volumes of procurement data, agentic AI can optimise inventory levels, automate order fulfilment, and pinpoint inefficiencies within the supply chain.
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Real-time Decision-making: Continuous analysis of market conditions, pricing changes, and supplier performance enables AI agents to facilitate data-driven decisions instantaneously, minimising delays and curtailing costs.
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Enhanced Supplier Collaboration: Agentic AI streamlines negotiations, monitors supplier performance, and enhances communication, ultimately leading to improved procurement outcomes.
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Risk Mitigation through Predictive Analytics: By proactively identifying potential disruptions, fraud risks, and compliance gaps prior to escalation, agentic AI bolsters operational security and overall supply chain resilience.
“AI is projected to significantly reduce procurement costs and optimise processes, driving substantial savings,” concludes Nair, as businesses navigate the complexities of today’s marketplace.
As organisations continue to harness the potential of AI, the transition to agentic AI marks a pivotal development for the procurement sector, highlighting a future where automated technology plays a crucial role in enhancing operational efficacy and strategic decision-making.
Source: Noah Wire Services
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