Artificial intelligence is reshaping business functions, but new research indicates a critical area is being left behind. According to SAP Taulia's AI in Procurement Report, the procurement function is lagging in AI adoption due to significant underinvestment, with only 35% of global leaders prioritizing it for AI growth, trailing behind finance, data analytics, and cybersecurity.
Only 35% of leaders globally prioritize AI investment in procurement and supply chain.
Procurement trails finance (43%), data analytics (39%), and cybersecurity (38%).
72% of procurement professionals report increased demands on their function.
44% believe AI will majorly impact solving these challenges.
Top AI benefits are seen in risk detection, strategic decision-making, and spend analysis.
Key barriers include leadership awareness, data security, and a lack of strategic perception.
This investment gap exists despite clear pressures and a strong belief in AI's potential within the function. With 72% of procurement professionals reporting increased demands, 44% see AI as a major solution. Leaders within procurement identify the biggest potential gains from AI in risk detection and mitigation (28%), data-led strategic decision-making (26%), and spend analysis and reporting (25%). However, regional disparities are stark, with the UK prioritizing procurement AI at just 20%, compared to 44% in Australia, highlighting an uneven adoption curve and a persistent view of procurement as operational rather than strategic.
Despite limited investment, procurement professionals are proactively leveraging available tools. Over half (55%) use AI-powered procurement platforms, and 63% use generative AI like ChatGPT. Of these users, 90% report that AI automation allows them to focus on higher-value activities like relationship management and risk oversight. The primary barriers to broader adoption are a lack of awareness among senior leadership (35%), concerns over data security and compliance (36%), and a broader cultural issue where procurement is not universally recognized as a strategic function worthy of significant investment.
This disconnect between procurement's potential and its investment priority represents a significant strategic oversight. As the function at the heart of supply chain resilience and working capital management, empowering it with AI is crucial for building agile, data-driven, and resilient organizations capable of navigating a volatile global environment.
About SAP Taulia
SAP Taulia, a global fintech leader, delivers AI-powered working capital solutions that unlock liquidity and drive supply chain resilience. With a global network of 40+ funding partners and over $800 billion in annual transaction volumes, SAP Taulia offers the most comprehensive set of working capital management tools in the industry - seamlessly embedded into SAP’s Business Suite. Trusted by global leaders like Airbus, Red Bull, T-Mobile, and Bridgestone, SAP Taulia’s reliable and innovative platform empowers businesses to accelerate cash flow and unlock growth opportunities at scale.
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