SAP Taulia: Procurement Remains Overlooked for AI Investment

While AI adoption continues to grow across global industries, procurement remains behind other business functions thanks to a lack of investment.

That's according to SAP Taulia's AI in Procurement Report, which shows underinvestment is leaving procurement professionals under-equipped – even as demand on their roles increases.

Just 35% of business leaders worldwide prioritise AI investment in procurement and supply chain, placing it behind finance (43%), data analytics (39%) and cybersecurity (38%).

The research highlights an ongoing perception of procurement as an operational unit, despite growing awareness within the function of how AI can boost strategic outcomes.

“Procurement sits at the heart of business resilience and supply chain security,” asserts Danielle Weinblatt, Chief Product Officer at SAP Taulia.

"AI presents a tremendous opportunity to elevate procurement’s strategic impact – transforming how organisations manage risk, relationships and working capital. The key is investing with both immediacy and long-term vision.”

Demand increases but investment lags

Procurement professionals continue to report mounting pressure. According to the report, 72% say that expectations on their function increase over the past year. Of these, 44% believe AI can play a major role in addressing these challenges.

While procurement teams themselves recognise the benefits, leadership teams appear slower to commit investment.

The study finds clear areas where procurement experts expect AI to deliver value, including risk detection and mitigation (28%), data-led strategic decision-making (26%) and spend analysis and reporting (25%). Other processes identified for improvement include sourcing and tendering and automating invoice and payment procedures (23% each).

This automation is seen as a way to shift procurement away from routine tasks, enabling more focus on areas like supplier relationships, risk management and long-term value planning.

Regional differences also shape adoption patterns. In the UK, only a fifth of leadership teams identify procurement as a priority for AI investment. This contrasts with higher rates in Australia (44%), Singapore (41%) and the US (37%).

The data points to a fragmented approach globally and highlights how procurement still struggles to be recognised as a strategic business partner.

AI use growing despite limited backing

Even with constrained budgets, AI tools are already being used by procurement professionals. More than half (55%) say they use platforms like SAP Joule, Ivalua or JAGGAER, while almost two-thirds (63%) use generative AI tools such as ChatGPT, Gemini or Microsoft Copilot.

Among those using AI platforms, the benefits are clear. The vast majority (90%) of procurement leaders report that automation enables them to shift their focus towards more valuable responsibilities, such as stakeholder engagement, long-term value creation and proactive risk oversight.

Furthermore, 88% say AI allows more time for strategic work, while 87% believe data-driven insights gained through AI are enhancing procurement’s influence in broader business decisions.

John Roberts, Senior Director of North America Procurement at NTT DATA, states: "The findings in this report validate what we see every day: AI is a powerful catalyst and we’re using it to elevate procurement from a back-office function to a strategic partner to the business.

"As we automate tasks such as invoice processing and spend analysis, it’s not just about cutting costs; it's about unlocking our team's capacity to build resilient supply chains and use data for true risk detection. Procurement professionals can't afford to be laggards in this new 'industrial revolution' – investing in AI for procurement is investing in the future agility and survival of the business."

Barriers rooted in perception and awareness

SAP Taulia's report outlines several barriers limiting AI adoption.

A lack of senior leadership awareness or understanding of AI’s benefits is cited by 35% of procurement professionals, while other top concerns include data security and compliance risks (36%), limited AI expertise (33%), weak alignment with wider digital strategies (33%) and insufficient training (33%).

Ashifa Jumani, Director of Procurement at TELUS, comments: "It's a clear paradox – procurement leaders understand AI's potential for strategic decision-making and higher-value work, but many functions are still overlooked in the wider investment strategy. 

"To get past this, we need leadership to champion the 'why' behind AI, treating it as an augmentation tool that empowers our people, not as a threat. When we use AI to handle the routine, repetitive tasks, our teams are freed up to focus on strategy, the essential human skills, relationship-building, negotiation and long-term value creation."

Operational challenges also hinder progress. Integration difficulties across workflows are mentioned by 31% of respondents, while 30% say poor data quality obstructs AI effectiveness.

Beneath these practical issues is a broader cultural challenge. A full 30% of professionals say procurement is still not viewed as strategic enough to justify AI investment. This perception gap creates a missed opportunity, as procurement continues to evolve beyond transactional work.

Danielle adds: “This research marks a pivotal moment. With low awareness cited among senior leadership, procurement can step up as a strategic partner and educator.

"This marks an opportunity to proactively showcase the specific, high-ROI benefits of AI for procurement, whether it's managing geopolitical risk or identifying hidden spend, to overturn the outdated view that the function is purely transactional. This is how procurement can take the lead and drive the entire organisation’s strategic evolution."