The AI Revolution & The Rise of Autonomous Procurement

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Michael van Keulen, Coupa CPO speaking at Procurement & SupplyChain LIVE 2024
Discover how autonomous procurement is cutting costs and empowering professionals to collaborate with AI for smarter decision making

AI is revolutionising the corporate world, making even traditionally overlooked areas such as procurement exciting. Leading organisations are turning to AI to streamline processes, cut costs and drive growth, creating an interconnected network of data, systems and talent.

Procurement, often seen as functional rather than flashy, is undergoing a transformation. Generative AI platforms optimise source-to-pay (S2P) processes, eliminating inefficiencies and delivering smarter strategies. Lior Delgo, Co-Founder and President at Globality, calls it “one of the coolest functions in the enterprise”. 

We hear more from him - and procurement legend Michael van Keulen - as well as seasoned speaker Olivier Berrouiguet below. 

How are self-learning systems transforming traditional procurement processes?

Lior Delgo: Procurement specialists no longer need to spend hours or days writing long, detailed briefs that cover every possible sourcing scenario. Now, they can "partner" with an AI agent, trained over many years by procurement experts, to receive a personalised sourcing journey with instant access to all the information and insights they need. This is game-changing. 

Michael van Keulen: Self-learning systems mean you can scan your contracts and the metadata is automatically looked at. You can start redlining based upon risk profiles or determine which limitations you need - which historically we've been doing one to one. Why don't we harness the power of technology and the power of AI to prescribe these red lines? It feels very logical, but the technology is not quite there, so we need to finally start innovating that technology up in the maturity curve. 

Olivier Berrouiguet: It's obvious that if you look at the way AI works, it's going to change the way software is designed and the way a project is put together. This is simply because AI is really helping to manipulate data and information, making the decision process a lot faster, so it's going to last forever.

It took around 20 years when cloud started and everybody was thinking it was going to be a massively public cloud and the big actors were going to dominate, whereas now we largely have a hybrid situation. I think it's going to be the same with AI. So, at Synertrade, we have decided to take this data fabric model and put it alongside the execution of the software in order to offer a place where you can use different tools in a very flexible manner, just like the hybrid cloud - that’s our dream.

Olivier Berrouiguet, Synertrade CEO speaks at Procurement & SupplyChain LIVE 2024

What are the key benefits and potential risks of implementing autonomous procurement systems?

Lior Delgo: Just because GenAI is everywhere, doesn’t necessarily mean it’s always welcome, or indeed working well everywhere. Corporate procurement is a notable exception.

Procurement is unique because it’s a complex, intensive process whose decisions not only impact the bottom line but can also determine success. Enhancing procurement with AI helps companies identify their best-fit suppliers, even in historically hard-to-procure spend areas that are complex and high-value. Because these areas have also been the hardest for machines to understand, they’ve been the most challenging to automate and optimise, relying exclusively on humans to handle.

However, it’s important to emphasise that unlike other areas, in complex sourcing we’re not yet talking about machine-to-machine-only transactions. Complex purchasing decisions always involve relationships; buyers and sellers need to feel confident and trust each other. Partnering with AI automates low-value repetitive, manual tasks, allowing you to focus on more strategic work such as supplier collaboration, scenario planning and becoming a true partner to the business. Relationships (internal and external) will always be crucial in procurement - and these will continue to be managed and led by people, while AI agents do the background work.

Michael van Keulen: At Coupa, we now manage 10 million suppliers and 3,500 customers, some of which are the biggest companies in the world like Procter & Gamble and Amazon - all these companies have given us access to their data contractually.

But how can I trust my software partners with my data? We anonymise the spend, which is large enough that we will never trace it down to one single transaction, then we can use that to train our AI and provide our customers with reliable insights and prescriptions that are based on real data coming from real companies doing real business with real suppliers.

However, technology is not a one size fits all and I will never tell you just buy this piece of software and all your problems go away - that is obviously not true. Instead, it's about people and process. I fundamentally believe you can never get to level four procurement maturity without the right technology - but you also cannot get there without the right blend of people and process.

How can organisations ensure a smooth transition to autonomous procurement?

Lior Delgo: My advice to procurement professionals is, just as you continually develop and nurture your partnerships with colleagues, focus on how to best partner with AI. Consider the types of guidance, instructions and prompts you can develop to unleash machine learning, predictive analytics and Agentic AI’s potential within your organisation. Strive to create an impact that is unparalleled and uniquely tailored to you, your company, your creativity and your proprietary data.

Olivier Berrouiguet: We have been in this business e-procument for around 20 years but not even a year ago, more like only months ago, GenAI became a revolution. 

I think people often forget that it’s only recently, because of the hype, that everyone in businesses and outside, believes it is going to change everything in our lives - but I think it’s going to take longer than people expect.

We have to define what the right set of tools and technologies to combine together is, in order to solve a specific procurement issue. We have a lot of issues and challenges to address, so the main opportunity for these technologies is for them to be assembled together.

To refine and define strategy, source-to-pay software enables process execution and proposes the right AI tools. However, AI alone won’t solve everything and expectations from stakeholders will grow as AI integrates further. Asking “How can I use AI?” is the wrong question. Instead, ask, “What do I want to achieve?” Start with your KPIs. Often, clients seek specific tools without clear objectives, leading to inefficiency. Success comes from first defining desired results. For example, if the goal is compliance, take it seriously by identifying KPIs and showing stakeholders and teams that your organisation meets compliance regulations. Defining the “what” is crucial before investing time or money.

Lior Delgo, Co-Founder and President of Globality

What skills will procurement professionals need to develop to work effectively with AI-driven systems?

Olivier Berrouiguet: In our RFX solution, we use GenAI tools to save time and improve processes with some customers. Additionally, customers often leverage their own GenAI facilities to explore similar scenarios. What remains unclear — and worth further discussion — is what the next steps are after automating and saving time. For example, moving to face-to-face evaluations of offers and tenders reveals limitations. Human intelligence becomes essential after initial document preparation. If you look at the entire process, this transition highlights how quickly human input becomes critical despite early automation benefits.

Lior Delgo: Familiarise yourself with the way in which AI-powered technology can engage in conversations and assist in answering procurement-related questions, while guiding you along the right buying path, considering various sourcing types and leveraging deep category expertise to create best-in-class project briefs quickly and easily.

I always say to procurement teams: seize the moment and embrace AI. Let it boost your capabilities, accelerate your career and make you a standout 10x performer. Procurement has a unique opportunity—it is the perfect use case for AI given the different types of work and collaboration across the business involved.

On the importance of developing effective AI-driven strategies, I’ll leave you with Michael van Keulen’s wise words: “A dollar saved at the bottom line is much more impactful than a dollar earned.”

To read the full story in the magazine click HERE


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