The pressure for procurement functions to modernize is intensifying, necessitating efficiency, cost management, and adherence to environmental, social, and governance (ESG) priorities in a volatile landscape. Many teams grapple with fragmented systems and inconsistent data, limiting their effectiveness. As technology evolves, agentic artificial intelligence (AI) is emerging as a solution. AI agents can autonomously manage procurement processes, with research indicating rapid adoption—35% of teams already utilize AI tools. For successful implementation, organizations must focus on three key elements: governance to define decision boundaries, adequate data access for informed choices, and cross-enterprise alignment to enhance collaboration. With nearly 74% of procurement leaders acknowledging their data isn’t AI-ready, establishing strong data foundations is vital. Additionally, as roles evolve due to AI integration, addressing skills gaps through upskilling or hiring is crucial. A digital-first approach is essential for attracting talent and transforming procurement into a unified system that drives strategic outcomes and enterprise value.
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