Did you miss Ardent Partners’ recent webinar, Evolution of AI in Procurement: The Agentic Age, that shed light on how artificial Intelligence (AI) has come a long way — from basic rule-based systems to today’s advanced models that can learn, reason, solve problems, and even create.
The session featured industry experts from Ardent Partners, as well as Fairmarkit’s CEO, Kevin Frechette, and Coca-Cola Europacific Partners’ Director – Procurement CoE, Anthony Breach, who explored artificial intelligence in procurement and its evolution from generative AI to Agentic AI that actively pursue objectives and take meaningful action in the real world.
In this four-part series, we feature articles based on the webcast discussion as well as this link to the full event.
Let’s begin with Part One with how AI adoption in procurement is still relatively low, with fewer than 40% of organizations currently using it, but interest is rapidly growing as leaders increasingly recognize its potential to boost productivity, streamline operations, and enhance decision-making. Survey findings reveal a strong future outlook, with around half of procurement leaders planning to adopt AI within a year and nearly 75% expecting it to have a significant or transformational impact on their function in the near future.
AI Adoption Statistics Tell a Story
Artificial Intelligence (AI) is rapidly reshaping industries, and procurement is no exception. In a recent discussion, Ardent Partners analysts shared insights into both the fundamentals of AI and the findings from a new wave of research on how procurement organizations are leveraging this technology. While the conversation steered clear of overly technical jargon, it offered a valuable glimpse into the evolving landscape of AI adoption and its potential to transform procurement functions.
One of the key highlights from the conversation was the recent State of Procurement report, which has been gathering industry insights for nearly two decades. In recent years, AI-related questions have been added to the survey to better understand how procurement teams are integrating intelligent technologies into their operations. Surprisingly, the findings reveal that adoption is still relatively low, with less than 40% of procurement organizations currently using AI in any capacity. Even more striking, when the survey narrowed its scope on AI use within “source-to-pay” systems, only 8% of respondents reported leveraging it. This suggests a potential gap in understanding, as many organizations might not fully recognize where AI is already embedded in their existing tools, or perhaps they associate AI solely with newer applications like generative AI (GenAI).
The survey also shed light on future intentions, and the outlook is promising. A significant portion of procurement leaders (around half of the respondents) indicated that while they are not using AI today, they plan to adopt it within the next 12 months. This shift in mindset highlights growing awareness and readiness to embrace AI as part of strategic procurement planning. Further reinforcing this trend, nearly 75% of procurement leaders believe AI will have a “transformational” or “significant” impact on their function in the next few years. Notably, the share of Chief Procurement Officers (CPOs) who anticipate a truly transformational impact has risen from 17% to 23% since last year, reflecting both increasing familiarity with the technology and a growing appreciation of its potential to drive real business value.
Beyond the adoption statistics, the research also explored why procurement leaders are turning to AI. The top motivator is productivity — specifically, the ability to automate repetitive manual tasks and allow procurement professionals to focus on more strategic, value-driven work. Close behind is AI’s role in enhancing decision-making by providing faster access to insights and supporting complex analysis. Efficiency gains, especially those related to managing headcount and budgets while maintaining or improving output, were also cited as a key goal. Looking forward, as AI tools evolve, particularly with the rise of Agentic AI systems and digital workforces, these priorities may shift even further, potentially driving even broader adoption and reshaping how procurement teams are structured.
While AI adoption in procurement is still in its early stages, the research suggests that change is accelerating. As more organizations explore both traditional AI techniques like machine learning and natural language processing, along with emerging generative AI capabilities, procurement leaders are recognizing the strategic potential to automate, streamline, and transform the way their teams operate.
