**London**: Artificial intelligence is revolutionising procurement automation, enhancing efficiency in contract management, risk assessment, and supplier collaboration. Insights from Agiloft’s Simon Jones and Ardent Partners reveal AI’s role in optimising supply chains and forecast a future blending innovation with social responsibility.
The transformative influence of artificial intelligence (AI) in the procurement automation market is becoming increasingly apparent, heralding significant advancements in efficiency and operational capabilities across various aspects of supply chain management. According to research conducted by Ardent Partners, AI is poised to become ubiquitous in the procurement sector, driving innovations in source-to-pay processes, eSourcing, risk management, and overall supply chain optimisation.
In this context, Ardent Partners has launched a special “AI in Action” interview series aimed at exploring the evolving role of AI in procurement. The series features conversations with product and strategy executives who offer insights into how AI technologies are reshaping procurement functions. The latest profile features a discussion between Andrew Bartolini, Founder and Chief Research Officer at Ardent Partners, and Simon Jones, Director of Product Marketing at Agiloft.
Simon Jones outlined several key opportunities that AI presents for enhancing procurement efficiencies. He explained that procurement teams, traditionally burdened by manual contract management and paperwork, stand to benefit greatly from automation. “One of the biggest opportunities for AI in the procurement world is automation — more specifically, automating tasks that eat up a ton of time and don’t require much brainpower. Think: generating purchase orders, assessing supplier risks, invoice matching, and contract analysis,” Jones said. He emphasised that AI enables Contract Lifecycle Management (CLM) platforms to rapidly process extensive document volumes, detect hidden trends, and preempt potential issues, thus alleviating the need for labour-intensive manual efforts.
Jones also highlighted AI’s ability to improve efficiency through better demand forecasting and supplier management. By analysing historical data and market patterns, AI can support procurement teams in making more informed decisions regarding supplier selection and negotiation strategies. Furthermore, AI-powered platforms facilitate smoother collaboration between procurement and contracting teams by streamlining information exchange, contract reviews, and risk assessments, ensuring compliance and alignment with organisational goals.
Regarding the accuracy and reliability of AI models, Jones underscored the importance of high-quality data and continuous oversight. He stated, “AI is only as good as the data it’s trained on, and bad data equals bad output. So, we focus on cleaning and validating data before it even gets near an AI model.” He emphasised the need for ongoing model monitoring, adaptation, and human feedback incorporation to enhance AI performance and avoid errors. Jones pointed to Agiloft’s GenAI Prompt Lab as a unique solution that allows customers to integrate their own Large Language Models (LLMs) with Agiloft’s AI, tailored to specific organisational needs, which supports accuracy and relevance in contractual workflows.
Jones identified machine learning (ML) and natural language processing (NLP) as the primary AI subsets driving procurement innovation. Machine learning facilitates demand forecasting and supplier risk analysis by learning from historical data to predict future outcomes and optimise decisions. NLP, on the other hand, empowers automated contract analysis and interaction with contract content, making large volumes of complex legal text accessible to non-specialists through functionalities such as clause drafting and real-time chatbot assistance.
Addressing potential AI skills gaps among procurement clients, Jones emphasised Agiloft’s commitment to customer onboarding, detailed training, and user support. Education plays a critical role, as clients often require guidance on practical AI applications rather than just theoretical knowledge. Jones stated, “We show them how AI can solve specific pain points in their day-to-day operations.”
Regarding customer attitudes toward AI, Jones observed a spectrum ranging from enthusiasm to caution. While some early adopters fully embrace AI for its efficiency and innovation benefits, many remain wary due to concerns around job displacement, accuracy, and data privacy. He described the common misconception that AI aims to replace humans, clarifying that it is designed to augment human efforts by automating repetitive tasks, thereby freeing procurement professionals for more strategic work. Jones expects increasing acceptance as more businesses realise AI’s role as a tool enhancing business outcomes rather than a replacement for human expertise.
Looking ahead, Jones forecasts that AI will evolve from niche tools to integral components embedded within routine workflows across multiple industries including healthcare, finance, and retail. He emphasised the necessity of balancing innovation with social responsibility as AI adoption expands. “The future of AI will need to balance innovation and responsibility… ensuring that its capabilities are harnessed in ways that are beneficial to society, not just businesses,” he said.
This discussion reflects ongoing developments in AI’s integration within procurement, demonstrating the technology’s potential to transform how organisations manage supplier relationships, contract processes, and operational decision-making. The insights shared by Simon Jones contribute to the broader dialogue on AI’s transformative role in procurement automation and supply chain management.
Source: Noah Wire Services
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