The Automation Trap: Is P2P Losing Its Human Touch?

Despite AI being the buzzword of the latest decade, Skills Dynamics’ 2026 report paints a more complex picture. While most organisations (83%) believe that they feel at least somewhat prepared to leverage AI and automation, 47% still cite the technology as the single biggest skills gap.  

“There’s a clear difference between feeling prepared and having the capability to properly govern what the technology produces,” says Sam Pemberton, CEO at Skill Dynamics. 

“AI outputs still need human validation, which means organisations need to ensure the people who understand the process stay in it. When that expertise is lost, so is the ability to catch errors and correct course.”

And the stats continue to validate this concern, with 25% of teams feeling ‘highly prepared’ to scale AI tools effectively, meaning most organisations are deploying automation without the workforce's confidence to properly audit, challenge or govern its outputs.

Sam adds: “We’ve already seen cases where companies have deployed automation too quickly without keeping human judgment in the loop, leaving no one with the depth of understanding needed to spot what was going wrong. Businesses need to get this balance right.

“From a financial auditability perspective, that’s a risk boards can’t afford to ignore, and it will only compound if left unaddressed.”

The transformation imperative

When it comes to implementing any new technology, employee buy-in is crucial. A common phrase among professionals is that “digital transformation is 20% technology and 80% people”, meaning that the buy and implementation of technology is the ‘easy’ bit, changing habits, mindsets and workflows is where the real work happens.

“I’ve been working closely with organisations across the private, public and not-for-profit sectors for a number of years, and the Source-to-Pay processes we automate all have people at the core,” says Charlotte Carter, Vice President of Product at Proactis. 

Tulsi Narayan, EVP of Commercial and New Payment Flows in Europe at Mastercard, adds: “Where the challenge really lies isn’t resistance to change, but confidence and helping people feel comfortable moving away from processes they’ve relied on for years.

“That’s why it’s so important to bring teams into the journey early. It’s not just about explaining what’s changing, but helping people understand how it makes their day-to-day work easier, whether that’s reducing manual tasks like chasing invoices or improving visibility over cash flow.

“There can be an adjustment period, of course, but we see the most successful transitions when businesses focus as much on supporting their people as they do on implementing the technology.”

The hidden value beyond cost savings

Beyond cost savings, one of the most underestimated benefits of automating P2P processes is how it can strengthen security across the entire payment lifecycle. Around 63% of non-users cite trust and security concerns as a barrier to them using embedded finance for procurement.

“This is particularly important given that many organisations still hesitate to digitise due to perceived risk,” says Tulsi. 

“In reality, digital tools and processes help address these concerns by reducing manual intervention, increasing visibility and embedding stronger controls into every transaction. By integrating payments within procurement systems, businesses can create clearer audit trails, enable near real-time monitoring and improve accuracy and compliance.”

Additionally, enhanced security not only protects a business internally, it also creates a more secure, reliable and transparent payment process, strengthening supplier confidence and helping build more resilient, trusted relationships across increasingly complex supply chains.

Charlotte adds: “Greater control reduces maverick spend, which often creates more work for procurement and elongates the tail spend that organisations are typically trying to manage and reduce. So the hidden value is really about giving the whole organisation a framework that supports compliance, strategy and better outcomes.

“Optimising P2P processes alongside strong adoption gives you a powerful level of control and guidance for everyone who purchases, so that high levels of on-contract spend are achieved, driving savings and mitigating risks at the same time.”

The automation paradox

When is there too much automation? Sam notes that there is certainly a balance to strike, and “many organisations haven’t quite found it yet.” 

He adds: “Automated warehouses and AI-enabled processes are already a reality, but AI can’t yet replace human judgment, especially when a supplier relationship is under pressure.”

The ability to respond flexibly doesn’t come from a workflow but from a relationship built on trust and understanding. “That kind of nuanced, situation-specific conversation needs a human on both sides. No automated process can read the room, offer reassurance or negotiate a pragmatic solution the way a person can,” says Sam. 

Tulsi echoes this: “The human element still plays an important role, particularly in more complex or sensitive situations. But when implemented effectively, automation can give teams the time and insights needed to react and respond more effectively when challenges arise. Rather than creating a trade-off between automation and relationships, the right use of technology can help build stronger, more resilient partnerships.”

Sam also highlights the structural risks that aren’t discussed enough: “As routine P2P tasks disappear, so do the learning opportunities they once provided. The skills procurement professionals build through relationship management, crisis judgment, and commercial instinct can’t simply be assumed to develop on their own if the work that built them has been automated away.

 “AI is a powerful and exciting development, but it shouldn’t come at the expense of the human skills that have always underpinned effective procurement.”

Reskilling and the new procurement professional 

When it comes to reskilling employees and what a procurement professional looks like in an automation era, professionals are becoming both relationship managers and data strategists.

AI is effective at reducing repetitive administrative work, but long-term value in procurement still comes from judgment, negotiation, supplier trust, governance and commercial strategy.

Procurement teams are moving away from transactional processing, towards higher-value decision-making, including deeper supplier engagement, stronger collaboration across legal and compliance functions, and greater focus on resilience, ESG accountability and third-party risk management.

As such, Sam stresses that procurement professionals need to increase their confidence in using AI, but equally challenging the output instead of simply accepting them. 

Sam adds: “Teams need to become confident working with AI itself. 46% of leaders list aligning human intelligence with AI as a top workforce priority (Skills Dynamics’ 2026 report), so the intent is clearly there. The challenge now is turning that into structured, measurable development rather than just good intentions.”

But reskilling shouldn’t be about data literacy alone, “it is about developing critical thinking, governance awareness and what I would describe as ‘active scepticism’ around AI recommendations,” says Sam.

“The organisations getting this right are not replacing people with AI. They are enhancing human capability and allowing procurement teams to focus on the areas where human judgment matters most.”

Skill Dynamics 2026 report highlights that nine in ten organisations are operating with at least one critical skills gap, and 14% have no dedicated training budget at all. 

“The starting point must be an honest assessment of where the gaps actually are,” Sam adds.

“That means working through each team member's skills in detail, what they're strong in and where there’s room for growth, and building a development plan from there rather than applying a one-size-fits-all training approach.”

Equally, Sam stresses that as AI takes on more routine, transactional work, the skills that matter most are the ones it can’t replicate, like negotiation, relationship building, supplier management and stakeholder communication. 

“These are also some of the biggest capability gaps identified in our research, so they need real investment and attention. Importantly, they need to be developed in context, grounded in real commercial situations rather than tick-box training,” he says.

2030 – touchless or just smarter?

It is unrealistic to suggest that the future doesn’t hold far more automated, intelligent and interconnected than it is today.

Businesses continue to move away from manual, fragmented processes towards embedded, data-rich payment experiences powered by AI and automation.

While technologies such as AI and machine learning are already streamlining core P2P tasks, Tulsi stresses that the future isn’t about creating a ‘touchless’ office. 

“People will continue to play an important role in managing complexity, overseeing risk and maintaining strategic supplier partnerships,” she explains. 

“As P2P evolves, it’s about using richer data and insight to support growth, enable smarter decision-making, stronger cashflow management and more resilient supplier relationships. By 2030, these intelligent, connected workflows should be the standard across finance functions.”

Instead, Tulsi describes the future of P2P as seamless orchestration – intelligent systems streamlining workflows behind the scenes, so teams can focus their attention on strategic priorities and decisions where human insight and expertise add the most value.

Charlotte echoed this smarter, over touchless approach to P2P. “By 2030, we’ll have much better, smarter and more connected Source-to-Pay processes, and AI will be doing far more of the routine heavy lifting.

“I’ve seen how automation has evolved over many years, and I strongly believe that evolution will continue. To ensure its success, we must first focus on the criticality of driving the adoption of automation to the fullest extent possible. Ultimately, I believe AI will play a pivotal role in increasing people’s capacity and capabilities, enabling them to drive levels of optimisation and performance that have historically been considerable hurdles.”

Sam adds: “The touchless office is a compelling idea, but not a realistic destination. Even by 2030, it’s likely there will still be situations that need a human in the room – a contract that needs renegotiating under pressure, or a compliance issue that requires genuine judgement.” 

Sam contemplates that a more credible picture is a hybrid model, in which the technology handles routine, predictable work. But when conditions shift or go off track, skilled, experienced people who understand the full picture and can make the right call will be needed. 

“That’s what P2P will look like in 2030, and it’s important organisations don’t lose sight of that by focusing too heavily on headcount reduction in pursuit of a ‘touchless’ scenario,” says Sam

“While AI adoption is accelerating, the gap between AI investment and building the skills to use it properly isn’t closing fast enough. The organisations that will be ready for 2030 are the ones investing in their people now, treating capability building as seriously as technology adoption.”