Progress in generative AI (GenAI) is poised to impact the procurement function through advancements in three areas, according to Gartner. Agentic reasoning, multimodality and AI agents are the advancements that will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs).
"Agentic reasoning, multimodality, and AI agents are coming to procurement. These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” says Ryan Polk, senior director analyst in Gartner’s Supply Chain practice. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Key Takeaways:
- According to a Gartner survey conducted in July 2024 with 258 global respondents, 72% of procurement leaders are prioritizing the integration of GenAI into their strategies. This highlights the recognition of its potential to drive significant improvements in efficiency and effectiveness, as well as multiple viable use cases, including by enhancing the contract management process.
Top 3 advancements in GenAI that will impact procurement include:
- Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
- Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
- AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
