A New AI Series on CPO Rising
The power of artificial intelligence (AI) is undeniable. Its impact and influence are revolutionizing the Procurement automation market. According to research from Ardent Partners, AI will soon be ubiquitous in this sector, offering unparalleled efficiencies and capabilities. The transformative possibilities of AI will drive innovations in source to pay, eSourcing, risk management, and overall supply chain management, streamlining enterprise operations and improving business decision-making.
In view of these advancements, Ardent Partners is excited to announce a special “AI in Action” interview series. We invite your company to participate in this series and contribute to the thought leadership around AI by having a product or strategy executive respond to high-level questions from Andrew Bartolini, our Founder and Chief Research Officer for Ardent Partners.
Today’s AI in Action profile features a conversation with Andrew Zhyvolovych, CEO and Co-Founder of Precoro.
AB: Good day Andrew, tell our readers a little bit about yourself.
AZ: My name is Andrew Zhyvolovych, CEO and Co-Founder of Precoro. I have 10+ years of experience in the procurement industry and entrepreneurship, and am deeply involved in leveraging technology to improve operational efficiency and solve challenges like decentralized purchasing, compliance gaps, and cost control.
AB: Thank you. I think I know your answer but let me ask anyway … what are the biggest opportunities for AI to improve procurement efficiencies and productivity?
AZ: Procurement is inherently complex, with teams managing massive amounts of data, dynamic market conditions, and supplier relationships while mitigating risks. At Precoro, we see AI as a tool to cut through the noise, automate repetitive tasks, and amplify human decision-making.
For instance, organizations processing 1,000+ invoices monthly can leverage AI to extract vendor names, dates, tax rates, and amounts from documents in different formats, including PDF or JPEG, and quickly create prefilled invoices in the procurement software. AI-powered tools can also match invoices with purchase orders and receipts, and flag discrepancies. Moreover, AI systems can even navigate complex document layouts with remarkable precision, improving processing speed and accuracy.
Another area of opportunity is contract management, where AI can extract payment terms, line items, and pricing details while scanning for legal and security risks. It also helps identify vendor consolidation opportunities by flagging overlaps in service providers. These efficiencies free up human teams to focus on strategic initiatives, but it is too early to entrust AI with more strategic aspects.
AB: How are you ensuring the accuracy and reliability of customers’ AI models (AI data output)?
AZ: At Precoro, we recognized the promise of AI long before it became a buzzword. The effectiveness of AI hinges on the quality of the data it learns from and the reliability of its provider. To achieve accuracy, we collaborated with various providers to find the best fit, ensuring we could train our models quickly with minimal data while maintaining security. As a result of our efforts, we’ve achieved an impressive 95% accuracy in data extraction, backed by a dedicated Precoro team committed to 100% precision via human review. By blending cutting-edge AI technology with thorough human reviews, we enhance reliability and foster trust in sensitive areas like procurement.
Constant AI learning and improvement are paying off. A month ago, reviewing a document took 4 minutes, but now it takes just 15 seconds per page. With AI, speed meets accuracy, revolutionizing procurement processes without compromising quality.
AB: What are the leading AI subsets (e.g., machine learning, natural language processing, deep learning, etc.) with the biggest impact on procurement solutions? And why?
AZ: It’s important to recognize that AI comprises a wide range of subsets, each with unique strengths that can be applied to specific areas and cases:
- ML powers data extraction and predictive analytics, learning from document variations to improve accuracy.
- NLP analyzes human language, which can be especially useful for contract management and invoice processing.
- DPL has the widest variety of use cases in procurement thanks to the ability to refine pattern recognition in complex datasets, such as identifying anomalies in spend patterns or supplier behaviors.
It’s important to note that the AI subsets mentioned are not limited to specific processes. To achieve the best results, we believe in combining different technologies and leveraging their strengths to create solutions that are not only efficient but also strategically aligned with our customers’ goals. With this approach, Precoro aims to bring enterprise-grade technologies to businesses worldwide.
AB: How can you support procurement clients when an AI skills gap deficiency exists?
AZ: AI should simplify processes, not complicate them. That’s why with Precoro, people can take advantage of powerful technology without needing to become experts in AI themselves. Our goal is for users to see results quickly without having to spend hours learning complex systems.
For example, when using our AI-driven document processing system, users can expect fields to auto-fill, inaccuracies to be minimized, and data to be matched automatically. The power of AI is harnessed behind the scenes, delivering clear and actionable results that allow procurement teams to focus on more strategic tasks.
Our AI system learns quickly, training specifically on each customer’s data. This ensures that the AI adapts to the unique needs of each client, improving accuracy while remaining flexible and accessible. As a result, customers don’t need to master the intricacies of AI — they simply benefit by using it to automate time-consuming tasks and focus on what truly matters: optimizing spend and building better supplier relationships.
AB: How do you view your customers’ (and prospective customers’) AI attitudes?
AZ: One common reaction is sheer amazement when they find out that invoices can be processed ten times faster. This significant boost in speed and efficiency stands out as one of the most striking benefits of AI, and it’s something our customers truly value.
However, while the speed and accuracy of AI are exciting, we also recognize that trust and security are top priorities for procurement professionals. After all, procurement involves handling sensitive financial data, and any mistake can have serious consequences. Our customers want to be sure that AI is not only fast but also accurate and secure.
At Precoro, we address these concerns by ensuring that our AI models are trained exclusively on a client’s data. This means no data is shared or mixed between clients, preserving privacy and security. Additionally, we maintain rigorous compliance with industry standards and regulatory requirements to further build trust with our clients. We believe that by combining AI’s power with a strong commitment to security and privacy, we can help our customers embrace AI confidently and reap its benefits without compromising on safety.
AB: Where do you see AI solution offerings within procurement in five years?
AZ: The future of AI in procurement is incredibly promising. We’re exploring new ways to replace manual work and provide professionals with tools that were once exclusive to large enterprises. The true value of AI will be realized when it’s focused on automating routine tasks and enabling professionals to shift from managing manual and repetitive processes to making strategic decisions about spending and supplier management.
In the near future, we envision AI managing all types of procurement documents — not just invoices but also contracts, expenses, purchase orders, RFPs, etc., with a deep contextual understanding to flag risks and suggest improvements. Predictive capabilities will allow AI to analyze historical data and external trends to forecast demand, recommend suppliers, and optimize spending proactively.
Moreover, AI will become more integrated across platforms, connecting procurement with finance, logistics, and inventory systems for greater end-to-end visibility. Personalized insights will evolve, helping procurement teams make data-driven decisions and stay ahead of potential risks or opportunities.
Despite these advancements, human decision-making will remain a crucial element in procurement. At Precoro, we focus on using AI to empower people, not replace them. By enhancing human capabilities, we aim to help procurement teams become more effective and strategic in their roles, ensuring that AI supports decision-making and drives greater business value.
In summary, it’s difficult to predict exactly how AI in procurement may evolve over the next decade. However, the trends we’re seeing today suggest a future where AI will play an integral role in automating processes, improving decision-making, and empowering procurement teams to drive strategic value for their organizations. At Precoro, we’re committed to making this future a reality, delivering innovative AI-powered solutions to businesses worldwide.
AB: I appreciate your time today!
AZ: Thank you.
