As AI moves from experimental to strategic, companies are leveraging new technologies for cost savings, transparency, and operational efficiency, despite cultural and structural hurdles.
Artificial intelligence (AI) is rapidly moving beyond experimental phases in procurement and supply chain management to become a crucial strategic asset. According to a recent benchmarking report from ProcureAbility titled “AI Adoption and Its Impact on Procurement,” nearly nine in ten supply chain and procurement leaders intend to boost their AI investments over the next year. The report highlights AI’s expanding role across key procurement processes, such as supplier discovery, spend analysis, and sustainability initiatives, contributing to measurable cost reductions, enhanced efficiency, and stronger supplier relationships.
Executives surveyed by ProcureAbility expressed a high level of satisfaction with current AI tools, with 92% reporting positive experiences. This reflects a significant shift from viewing AI as merely a back-office efficiency tool to recognising it as an essential driver of competitive advantage. Darshan Deshmukh, President of ProcureAbility, emphasised in a company statement that embedding AI strategically rather than tactically can unlock transformative benefits in cost management, supplier relationships, and operational performance.
However, the transition is not without obstacles. The report points out structural and cultural challenges hindering full-scale AI adoption, such as resistance to change and a lack of widely proven success stories. Currently, 59% of organisations deploy AI for targeted, specific projects rather than embracing it as part of a comprehensive, enterprise-wide transformation. Furthermore, confidence in accurately measuring the return on investment (ROI) remains modest, with most leaders only somewhat confident in their ability to quantify AI-driven gains.
Complementary industry data further underline the momentum and expectations for AI in procurement. The Hackett Group’s 2025 Key Issues Study highlights that 64% of procurement leaders anticipate AI and generative AI will transform their roles within five years. Yet, this transformation comes amid increasing workload pressures, with procurement workloads expected to rise by 10% in 2025 while budgets grow by just 1%, underscoring the urgent need for AI to drive efficiency gains. Similarly, GEP-sponsored research projects that by the end of 2024, nearly three-quarters of Chief Procurement Officers will be adopting AI, recognising its transformative potential for automation and enhanced decision-making.
Besides AI’s expanding footprint in procurement, breakthroughs in supply chain traceability are also emerging. Greensphere Capital recently invested in Source Certain, a forensic science company pioneering a machine-learning platform that verifies the true geographic origin of products through chemical composition analysis. Unlike traditional paperwork or blockchain solutions, which can be tampered with, Source Certain’s technology leverages “chemical fingerprints” to validate product origins more accurately and cost-effectively. This approach has exposed instances of fraud such as mislabeled Italian tomato puree sourced from China and conflict zone wheat misrepresented in global markets. Divya Seshamani, Managing Partner of Greensphere Capital, remarked that chemistry-based verification achieves what blockchain promised but could not deliver—incorruptible truth—and that the product itself becomes its own proof.
Fleet management is another sector where AI is accelerating adoption. Fleetworthy announced an expansion of AI capabilities across its fleet safety, compliance, toll management, and weigh station bypass solutions. The company integrates continuous AI-driven monitoring to detect risks and anomalies in real-time, predictive audit readiness to pre-empt compliance issues, and AI-powered toll cost forecasting to optimise routes and reduce expenses. Shay Demmons, Fleetworthy’s Chief Product Officer, underlined that these AI enhancements aim to improve operational value immediately while positioning fleets for a future shaped by predictive and connected technologies.
Nevertheless, AI adoption in procurement and logistics is still uneven. While enthusiasm and investment grow, many organisations grapple with integrating AI across their entire operation rather than isolated projects. Gartner’s 2024 Hype Cycle for Procurement and Sourcing Solutions notes that generative AI for procurement currently sits at the “Peak of Inflated Expectations,” signalling a hype phase before widespread productivity gains are realised. However, Gartner forecasts that within two years, over 70% of procurement leaders will adopt generative AI technologies across contract management, sourcing, supplier management, and analytics.
As AI technologies mature, the competitive divide is expected to widen between those who systematically embed AI into their procurement and supply chain strategies and those who hesitate. The convergence of AI-driven procurement optimisation and advanced supply chain authenticity verification, exemplified by firms like ProcureAbility, Source Certain, and Fleetworthy, signals a new era where operational efficiency, transparency, and trust are paramount. Organisations that can harness AI’s strategic potential while overcoming structural and cultural barriers are poised to unlock substantial cost savings, improve sustainability outcomes, and strengthen supplier partnerships in an increasingly complex global marketplace.
Source: Noah Wire Services
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