To understand the industry dynamics Zycus conducted a survey in collaboration with Procurement Tactics, a procurement strategy consultancy.
The report titled: “State of Generative AI in Procurement” provides unprecedented insights into how Generative AI (GenAI) is transforming procurement processes, based on extensive survey data from procurement leaders worldwide.
Key findings of the survey reveal that nearly 70% of the Chief Procurement Officers (CPOs) are yet to implement Gen AI in their procurement processes. About 60% of companies currently lack specific policies on Gen AI usage. This highlights the governance challenge and underscores the urgent need for strategic guidance as the adoption accelerates.
The report outlines Gen AI’s transformative potential and details how GenAI is automating routine tasks and enhancing strategic decision-making across the entire procurement lifecycle.
Interestingly, the survey suggests that 50.6% of respondents utilize GenAI in contract management, with prominent use cases related to driving efficiency in administration.
31.5% of the respondents use GenAI to gather insights on creating the most effective negotiation strategies. Only 11.5% of respondents use GenAI to streamline communication with their suppliers, which corresponds to the personalization nature of supplier relationship management
Data quality and security emerge as respondents’ top concerns, emphasizing the need for responsible AI implementation strategies.
“AI is the new UI. How we engage with enterprise software is going through a fundamental transformation – from clicks to converse. Beyond this, GenAI – through AI agents is delivering significant productivity improvements across the entire source to pay cycle. The findings of State of GenAI in procurement showcases immense untapped opportunities – Amit Shah, Chief Marketing Officer, Zycus”
Organizations are encouraged to implement comprehensive risk management strategies, ensuring that advancements in GenAI technology are matched with equally advanced governance and security measures.
This report serves as a wake-up call for the procurement industry. GenAI’s potential is immense, but the adoption gap is equally significant. Organizations that fast-track implementation should act soon to integrate GenAI responsibly, and they will gain a substantial competitive edge.
Download Report to learn about the benchmarks set by the industry peers and get actionable insights to get started.
