Introduction: Why Generative AI in Procurement is needed Now

Generative AI (Gen AI) is disrupting every industry, and procurement is no exception. The changing landscape, influenced by geopolitical tensions, environmental regulations, evolving consumer preferences, and disruptive technology, has made procurement more complex than ever. Traditionally seen as a cost-cutting function, procurement must now ripen into a strategic role that enables businesses to thrive in this fast-changing environment. The pressing question is: How can procurement leaders mature to the challenge of complexity and disruption?

In this case Gen AI  in procurement is not only the cause but also the cure. This transformative technology is driving change across procurement, particularly in category management. From automating routine tasks to enabling data-driven decision-making. While adoption rates of Gen AI in procurement remain relatively low, as noted by Supply Chain Management Magazine, AI is no longer optional—it’s essential for advancing procurement Maturity and gaining competitive advantages.

By the end of this article, you’ll understand how Generative AI in procurement can unlock exponential growth in maturity, helping your team optimize processes and build resilience.

Scratching the Surface

Many of us already use Generative AI in our daily lives—whether drafting emails or automating repetitive tasks. According to a pulse by The Art of Procurement, 55% of respondents identified accelerated workflows as AI's primary benefit. However, while this efficiency boost is valuable, it only scratches the surface of what Generative AI in procurement can achieve in category management.

The real transformative power of Generative AI lies deeper. It helps businesses make faster, smarter decisions and optimises procurement processes far beyond basic automation.

What is Generative AI and Its Impact on Procurement?

Generative AI is a type of artificial intelligence that learns from existing data to create new content, ideas, or patterns. In procurement, it revolutionizes category management by automating complex tasks, predicting market trends, and generating actionable insights that enable smarter decision-making. For instance, Generative AI can interpret large datasets to provide function-specific outputs that enhance Source-to-Contract (S2C) processes.

Driving Category Management Maturity with Generative AI

Procurement maturity is a framework for assessing the effectiveness and strategic alignment of an organisation’s procurement function. It reflects the progression from operational activities to advanced, strategic initiatives that drive multi-dimensional value across the business. By leveraging Generative AI, procurement teams can accelerate this journey, optimising not just cost efficiencies but also strategic decision-making, innovation, and resilience.

Generative AI isn't just about streamlining processes—it’s about catalysing exponential growth in your procurement maturity. Let’s explore how AI accelerates this journey through three essential layers of value: automation, trend identification, and strategic decision-making.

1. Layer - Automation: The First Step to Maturity

At its most basic level, Generative AI automates repetitive tasks like generating RFPs (Requests for Proposals), contracts, and automating supplier classification. AI-driven tools can pull data from vast libraries to create tailored documents in a fraction of the time it would take a human team. By using AI in procurement workflows—such as supplier onboarding and spend analysis—organizations can reduce time spent on these tasks by up to 80% (KMPG).

Automation frees up procurement teams to focus on strategic activities like supplier relationship management and long-term planning, pushing them toward the mature stages of category management.

2. Layer - Trend Identification and Mitigating Risks

Beyond automation, Generative AI for procurement provides a deeper layer of value through trend identification. AI can analyze internal procurement data along with external market signals, such as supply chain risks or price fluctuations, to predict disruptions before they happen.

AI tools can also scan public databases, industry reports, and news sources to provide real-time market intelligence on supplier performance or geopolitical risks. This allows procurement teams to adjust their strategies proactively, optimizing both cost savings and risk management.

3. Layer – Strategic Decision-Making with Generative AI in Procurement

The most transformative layer of value comes from AI for Procurement-driven decision-making. By synthesizing large sets of structured and unstructured data, Generative AI in Procurement helps leaders make more informed, data-backed decisions. It evaluates multiple data points—like supplier performance, cost-effectiveness, and market conditions—simultaneously to offer actionable recommendations.

For instance, Gen AI in Procurement-powered systems can assess suppliers based on factors like reliability, cost, and geopolitical risk, ensuring procurement teams make optimal, strategic choices. Additionally, AI can simulate negotiation strategies, providing data-driven insights to achieve better outcomes, driving 4x more value in procurement operations.

How akirolabs Can Help:

akirolabs specializes in empowering procurement leaders to unlock the full potential of Generative AI in Procurement for strategic decision-making. Our platform integrates cutting-edge AI for Procurement capabilities with intuitive workflows to deliver actionable insights tailored to your business needs. Here’s how akirolabs supports procurement teams in Layer 3:

• Data Synthesis and Advanced Insights: akirolabs' AI-driven analytics consolidate internal procurement data and external market intelligence into a single, user-friendly interface, offering a holistic view of category performance and supplier dynamics.
• Scenario Modeling and Predictive Analytics: Through akirolabs, teams can simulate various procurement scenarios, analyze the impact of different strategies, and anticipate market shifts. This ensures your decisions are both data-informed and future-ready.
• Tailored Strategic Recommendations: Our platform provides customized, AI-powered recommendations for optimizing supplier portfolios, achieving cost efficiencies, and aligning with ESG objectives.
• Collaboration-Driven Innovation: With akirolabs, procurement teams can collaborate across functions to align category strategies with organizational goals, ensuring your decisions not only mitigate risks but also drive long-term business value.

By partnering with akirolabs, your procurement team will transform from operational managers to strategic leaders, capable of navigating complexity and driving innovation in your organization.

Why Now is the Time to Embrace Generative AI in Procurement

In conclusion, Generative AI in Procurement is revolutionizing category management by automating processes, predicting market trends, and enhancing strategic decision-making. It enables procurement teams to unlock new efficiencies and more importantly – drive exponential maturity, transforming them from operational support functions to strategic enablers.

Now is the time to leverage AI for Procurement to accelerate your procurement maturity and achieve a competitive edge. Book a free demo with akirolabs today to see how we can elevate your category management maturity. Visit our website for the latest updates on Gen AI in Procurement.forming them from operational support functions to strategic enablers.