AI May Boost Procurement’s Bottom Line

Procurement functions are rapidly shifting from manual, paper-based workflows to artificial intelligence-driven systems that speed execution and surface deeper commercial insights. According to research quoted by Oracle, AI can reduce the time to complete common procurement tasks like processing contracts or purchase orders by up to 80%, freeing teams from routine work.

PYMNTS Intelligence data shows that 75% of companies are now considering using AI in procurement. CFOs surveyed for the report, “The Investment Impact of GenAI Operating Standards on Enterprise Adoption,” a PYMNTS Intelligence study produced in collaboration with Coupa, were exploring using the technology despite voicing concerns over data privacy and other issues.

Across industries, organizations are adopting advanced technologies from embedded AI in ERP suites to contract intelligence platforms and generative AI tools to improve negotiation outcomes, spend visibility and risk management.

Embedded AI and Efficiency Gains

Oracle’s Fusion Cloud Procurement suite illustrates how embedded AI is reshaping day-to-day procurement operations. Within the Fusion Cloud platform, AI models automate spend classification, identify qualified suppliers, predict lead times and perform real-time policy checks against budgets and compliance rules. These capabilities reduce manual effort and accelerate key processes such as supplier selection and contract review.

Procurement teams using AI-embedded systems see faster access to insights that once required significant manual analysis. For example, an Oracle case study highlights a global printing company that uses AI-supported tools to negotiate volume discounts with indirect suppliers in exchange for early payment terms, translating analytics directly into improved commercial outcomes.

McKinsey analysis finds that modern procurement teams are managing roughly 50% more spend per full-time employee than five years ago, while simultaneously deploying AI agents to automate repetitive tasks, freeing professionals to focus on strategic sourcing and risk mitigation.

Efficio, in collaboration with OpenAI, is embedding generative AI into procurement workflows to accelerate time to insight, improve decision quality, and deliver measurable savings. The collaboration includes systematic training and guardrails to ensure reliability and practical enterprise usage.

Contract Intelligence and Strategic Savings

AI isn’t only streamlining routine tasks, it’s also enhancing one of procurement’s most complex domains: contract management. AI-powered contract intelligence platforms can scan thousands of agreements to uncover pricing inconsistencies, identify noncompliance risks, and quantify savings opportunities that would be infeasible to analyze manually.

For example, users of Icertis’ AI-enhanced contract tools report measurable commercial outcomes: A European telecom company realized roughly $35 million in savings following a merger by consolidating supplier contracts and eliminating redundant agreements. AI in this context provides a “single source of truth,” surfacing which suppliers deviate on pricing or performance and enabling procurement leaders to redirect negotiation strategy accordingly.

This capability to automate insight generation and action execution is emerging as a competitive differentiator. McKinsey’s research argues that procurement teams that adopt AI broadly from supplier risk prediction to contract lifecycle management are better positioned to deliver value in volatile market conditions and move toward strategic business partnering.

Risks, Roles, and the Future of Procurement

Despite these gains, adoption of AI in procurement is not uniform, according to industry think tank Art of Procurement’s “State of AI in Procurement” report. Most teams are still early in their AI journeys, often using basic automation or analytics rather than fully integrated AI platforms. Tech modernization, data quality issues, and organizational readiness remain barriers.

As AI takes over data-intensive work, traditional procurement roles are evolving. Employees now need skills in interpreting AI outputs, managing AI-augmented workflows, and integrating insights with broader business strategy. Internal training and change management are becoming as important as the technology itself.

At the same time, emerging generative AI and agents promise to further shift the function. Tools that can parse unstructured data, draft clauses, or generate negotiation strategies are moving procurement beyond automation toward a hybrid model where human expertise and autonomous systems work in tandem.