AI and automation are revolutionising procurement, fundamentally transforming how procurement teams operate and deliver value to their organisations. Although still an emerging field, these technologies are already driving substantial gains in efficiency, productivity, and strategic impact.
AI has been shown to reduce the time procurement teams spend on routine tasks by as much as 80%, with more than half of procurement activities now considered suitable for automation. Perhaps most strikingly, AI can capture procurement data up to 92% faster than traditional methods, freeing teams to focus on more strategic priorities such as supplier relationship management and spend optimisation. This acceleration in data processing and task automation has caught the attention of most chief procurement officers (CPOs), with 92% recognising AI’s transformative potential. However, despite this recognition, adoption lags behind; as of 2024, less than 40% of CPOs had actively piloted or deployed AI-driven procurement solutions.
Within this evolving landscape, Arkestro has emerged as a notable player offering predictive procurement technologies designed to accelerate procurement transformation. Highlighted in the recent Gartner® report as a Representative Point Solution Vendor in the Sourcing Applications market, Arkestro employs AI and game theory to unlock savings while reducing risk in enterprise spend management. According to the Gartner analysis, sourcing applications like Arkestro’s enhance efficiencies by automating traditionally labour-intensive sourcing activities. This automation permits procurement professionals more time for complex negotiations, resulting in improved cost management, better contract terms, and heightened compliance with organisational policies.
Arkestro’s Predictive Procurement Orchestration platform exemplifies this next-generation capability, enabling procurement teams to influence a significantly larger portion of their enterprise spend more effectively. The company has garnered widespread industry recognition, being named a Sample Vendor in the 2022 and 2024 Gartner® Hype Cycles for Procurement and Sourcing Solutions. It has appeared prominently in categories such as Autonomous Procurement, Autonomous Sourcing, and Supplier Discovery—areas gaining traction as the future of procurement operations.
Beyond Gartner, Arkestro’s credentials include being awarded as a 2021 Gartner® Cool Vendor in Strategic Sourcing Technology and securing a place as a Top Sourcing Tech Vendor in the Spend Matters Fall 2024 SolutionMap. This latter accolade is based on a rigorous evaluation process involving over 500 Request for Information (RFI) requirements, mandatory product demonstrations, and anonymous customer feedback. The recognition underscores Arkestro’s commitment to procurement innovation, especially in leveraging AI, machine learning, and game theory to optimise procurement cycles and manage spend at scale without increasing headcount.
Autonomous sourcing, which is closely linked to Arkestro’s offerings, uses AI to streamline and automate multiple sourcing functions. These include automated creation of sourcing events, dynamic timing, supplier feedback collection, response scoring, detailed analysis, and award decision-making. Gartner’s 2023 Hype Cycle for Procurement and Sourcing Solutions rates autonomous sourcing as a highly beneficial emerging practice, projecting that it will enter mainstream adoption within the next five to ten years. The anticipated shift promises significantly increased revenue or cost savings for enterprises embracing these technologies.
While the promise of AI-driven procurement is substantial, challenges remain. Many procurement organisations still struggle to match technology advancements with the necessary change management and strategic realignment. The journey to widespread AI adoption in procurement promises to be gradual, requiring collaboration between solution providers, industry analysts, and procurement leaders to fully unlock the technology’s potential.
In summary, the procurement function stands on the cusp of a major technological transformation. Vendors like Arkestro are pioneering AI-powered, predictive capabilities that not only automate routine tasks but also empower procurement teams to negotiate better, optimise spend more effectively, and manage supplier relationships with unprecedented insight. Industry recognition from Gartner and Spend Matters reflects the growing conviction that autonomous sourcing and predictive procurement will be integral to the future of procurement excellence.
Source: Noah Wire Services
