Gen AI in Procurement: The gap Between Ambition & Execution

Generative AI (Gen AI) is a major part of procurement function, but large-scale deployment is lagging behind. 

According to the 2026 Annual CPO Pulse Report, The State of Generative AI in Procurement, though experimentation with Gen AI is now systematic, only 5% of procurement functions have successfully industrialised these technologies.

Though leaders see the value in Gen AI, there is a delay in applying it to where it can offer proven value to procurement.

Report findings

The CPO Pulse Report, published by EFESO Management Consultants, offers an in-depth analysis using qualitative interviews with 50 Chief Procurement Officers. The study explores how Gen AI is being adopted, where value is coming from and why execution is a challenge in itself.

Generative AI is no longer a new, emerging topic for the procurement function. Now, it is understood to be a driver of business success, through increases in efficiency, productivity and cost savings as a result of this tool.

However, though it is being tested across organisations, there is still a barrier to large-scale deployment. 

According to the survey, as little as 5% of procurement functions have been able to successfully utilise industrial Gen AI across their operations, despite it having demonstrated itself as a major player in experimentation.

Moreover, though Gen AI is widely discussed as a priority for procurement leaders, with plans to implement it across the operations, large-scale deployment is limited. Many have not yet attempted to implement it yet, with 75% organisations still in the experimentation phase of it.

Of this, 40% are in early exploration and 35% are still running pilot projects.

This delay in getting Gen AI running across procurement functions demonstrates a wider issue. Of the companies surveyed, only 20% report having partial deployment across their operations. Through this study, a growing gap between aims and execution has revealed itself. 

Gen AI limitations

Business leaders are seeing value creation from Gen AI, but it remains limited to clearly defined areas.

It is demonstrably successful across contract analysis and summarisation (69%), followed by supplier and market intelligence (61%) and automation of supplier sourcing processes (55%). These productivity-oriented use cases benefit from lower integration risk and high data density. 

However, more complex uses demonstrate issues, as only 35% of procurement leaders see added value in AI-assisted negotiation. These solutions require more thorough data integration and stronger governance, demonstrating that procurement leaders do not trust Gen AI's capabilities for more advanced requirements. 

"What we are observing is not a lack of interest, but a rise in discipline," explains Gaël Sandrin, Principal at EFESO Management Consultants.

"CPOs are no longer asking whether generative AI works, but where it works, at what cost and under what conditions.”

When Gen AI was first emerging, there was an expectation of rapid and universal transformation, but now there is a deeper understanding of its capabilities. Gen AI is able to deliver value, but only with structural effort – it cannot create instant and systematic change. 

Leading organisations are now turning more towards clearly defined use cases where there is proof of tangible impact from Gen AI, such as contract analysis, supplier intelligence, spend classification and category insights.

Companies that recognise where to successfully apply Gen AI are moving beyond the pilot stage selectively and moving closer towards gaining results.

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• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.
Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Changing mindsets

Though widespread testing has been taking place, not all procurement leaders are satisfied or confident with the technology and its results. In the survey, only 34% leaders report being satisfied with the value generated from this tool relative to initial investments, with 46% being partially satisfied and 20% reporting feeling disappointed.

Leaders are also facing barriers to scale when it comes to trust, as leaders show concerns surrounding data reliability (68%), as well as regulatory compliance and confidentiality (67%).

There are also delays to scale caused by skills shortages (57%) and data quality limitations (55%). 

EFESO Management Consultants do not think this represents a slowdown in in Gen AI uptake, but rather that it represents a growing maturity across the sector and its tools.

As procurement functions shift, so does the technology that aids them. Functions are moving from generalised experimentation towards selective industrialisation.

The shift in procurement demonstrates an alignment of feasibility, data readiness, economic credibility and governance.

As a result, leaders are now looking to deploy Gen AI where it can meaningfully support performance, rather than apply it across operations for the sake of it, loosing value when applied where it will not help.